1991 (12) TMI 88

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing disposed of in accordance with law. 3. Shri K. Balakrishnan, the ld. Departmental Representative, appeared before us and submitted that the assessee has violated the provisions of section 11(5) of the IT Act, 1961 (hereinafter called the Act). Therefore, exemption as contemplated under section 11 of the Act cannot be granted to the assessee. Our attention was invited to the observation made by the ITO while disallowing the claim. The relevant portion reads as under : " Since the amount credited to corpus fund are still to be received by the assessee, the amount remains with the Surajba Ch. Trust in the form of investment. This form of the Investment is prohibited under section 11(5) hence the assessee is not entitled for the benef....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he term " investment " implies investment for a given term, but that cannot be applied to a balance lying to the credit of the assessee. It connotes act of investing. It is defined by Webster in his dictionary as meaning 'The laying-out of money in the purchase of some species of property, usually of a permanent character'. Skeat, in his Etymological Dictionary, says 'invest' means 'to lay out money' and in Wharton's Law Lexicon the same meaning is given. In Latham's 'Johnson's English Dictionary' the meaning given of 'invest' is 'Putting out capital (i.e., establishing a vested interest in it) for the purpose of obtaining interest for it'. There is no statutory definition of the word 'investment'. The word must therefore be read in its pop....