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TMI Blog1985 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... e Society, even though investment had been made in terms of s. 13(2)(a) with Goodwill India Ltd. without adequate security which is assessable in view of the provision of s. 21-A of WT Act. r/w s. 13(2)(a) of IT Act." 2. The assessee is a charitable trust. The relevant valuation date for this year is13th March, 1977. The WTO computed net wealth as under: 1. Motor Genl. Finance 50,000 shares @ Rs. 13 per share 6,50,000 2. Goodwill India Ltd. 12,500 shares @ Rs. 11 per share 1,37,500 3. Other assets as per Balance sheet 11,69,636 . 19,57,136 Less under s. 5 1,50,000 . 18,07,136 3. Evidently, the WTO did not allow the assessee s claim for exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Companies. (ii) The WTO also observed that the assessee-trust as well as two other trusts, were holding 15 per cent of the share capital of the aforesaid companies at 5 per cent each. Accordingly to the assessee, however out of 50,000 shares of Motor Genl. Finance Ltd., held by it. 40,000 shares of the value of Rs. 10,000 each, were received by it by way of an endowment for the corpus of the trust and hence such shares could not be considered to be investment of the funds of the assessee-trust. Similarly, the remaining 10,000 shares of Motor Genl. Finance Ltd. were received as bonus shares and hence could not also be considered to be investment made by the assessee trust. The WTO, however, did not accept these submissions. (iii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orpus cannot be considered to be an investment of the funds of the assessee-trust. In the above view, the Tribunal dismissed the Departmental appeal (WTA No. 30 (Del)/1980). 7. In the light of the above order, we have considered the objections of the Revenue before us. The first objection is that shares of the two companies ought not to have been exempted in view of the provisions of s. 21-A of WT Act 1957 r/w s. 13(2)(h) of the IT Act, 1961. From the balance sheet of the assessee society as on31st March, 1977the position is seen to be as follows: Endowment Fund Investments 50,000 equity shares of Rs. 10 each fully paid up of Motor Genl. Finance Ltd. (Market value Rs. 9,25,000) 5,00,000 Other investments . ..... X X X X Extracts X X X X X X X X Extracts X X X X
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