2025 (9) TMI 232

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.... ITO, Exemption, Ward, Ghaziabad (hereinafter referred to as 'ld. AO'). 2. The only effective issue is to be decided in this appeal is to as to whether the surplus amounts which had not been applied for charitable purposes by the assessee trust, but kept in current account maintained with Bank of India would be eligible for exemption u/s 11(2) of the Act or not in the facts and circumstances of the instant case. 3. I have heard the rival submissions and perused the material available on record. It is not in dispute that assessee is a public charitable trust duly registered u/s 12A/ 12AA of the Act and eligible for exemption u/s 11 of the Act. The assessee Society is carrying on objects of imparting education to the children of nearby ....

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....her, on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that Rs. 4,86,304 which was not invested in another capital asset could be eligible for exemption under section 11(1A) of the Income-tax Act?" The facts leading to the above substantial question of law are as under: The assessee is a trust. The relevant assessment year is 1990-91 and the corresponding accounting year ended on March 31, 1990. The assessment was completed under section 143(1)(a) of the Income-tax Act, 1961 ("the Act" in short), raising a demand of Rs. 4,60,433. The assessee-trust sold certain lands for Rs. 9,65,625 and out of the sale proceeds, invested an amount of Rs. 4,58,321 in fixed deposits and Rs. 21,00....

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....templated under the provisions of the Act. Hence, the order passed by the Tribunal is in accordance with law. Heard counsel. It was found by the Assessing Officer that a sum of Rs. 4,58,321 was alone invested during the year of account in another capital asset, viz., fixed deposit. The dispute here is whether the balance amount of Rs. 4,86,304 lying in the current account in the Bank of India as well as the cheque on hand, would be considered as classified investment or not, under the provisions of the Act. Section 11(5)(iii) of the Act, reads as under: "(5) The forms and modes of investing or depositing the money referred to in clause (b) of sub-section (2) shall be the following, namely:- ... (iii) depo....