2001 (11) TMI 26 - HC - Income Tax

Charitable Purpose, Exemption - Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that there was no contravention of section 13(1)(d) of the Income-tax Act, 1961, for the assessment years 1985-86, 1986-87 and 1987-88 in view of the proviso (iia) to section 13(1)(d) extending the time for complying with the specified pattern of investment up to March 31, 1993? - There was, no contravention of section 13(1)(d) of the Act by reason of the assessee having held the investments during the assessment year. We answer the question referred to us in favour of the assessee and against the Revenue.

Summary

The High Court of Madras ruled in favor of the assessee for the assessment years 1985-86, 1986-87, and 1987-88. The court held that there was no contravention of section 13(1)(d) of the Income-tax Act due to the extension of time for complying with the specified investment pattern up to March 31, 1993. The decision was based on a previous case and the retrospective effect of the extension allowed by the Finance Acts of 1991 and 1992.