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TMI Blog1991 (2) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... g year ends on 31-12-1983, the assessment was completed on 17-10-1986 under section 143(3) on an income of Rs. 5,453. Subsequently the CIT Guntur invoked the provisions of section 263 of the Income-tax Act, 1961 (hereinafter called ' the Act '), for the following reasons : (1) It was seen from the balance sheet of the academy as on 31-12-1983 that an amount of Rs. 3000 was invested by the academy in FD with Nagarjuna Steels Ltd. Up to 26-6-1984, the amount remained in FD with the same company ; (2) As per the provisions of section 13(1)(d) of the IT Act nothing contained in section 11 shall operate so as to exclude from the total income of a Trust for charitable purposes, if any funds of the trust or institution are invested or deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 263 of the Act. Appeal against the order of the Commissioner passed under section 263 is before us. 5. Shri M.J. Swamy along with Smt. Prabha Jain appeared before us and submitted that the assessee has deposited Rs. 3,000 with Nagarjuna Steels Ltd., in the name of Gandhi Vigyan for 3 years, on 25-5-1981. The maturity date was 26-5-1984 and money was paid back on 26-6-1984. According to learned counsel, learned CIT as well as learned CIT(A) have erred in denying exemption overlooking the fact that investment was made prior to the coming into force the provisions of section 13(1)(d). This section is effective from the 1st day of March, 1983 and in terms of the deposit, the amount could not have been disinvested prior to the date of maturity. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the light of material placed before us. It is a fact that assessee invested the money before section 13(1)(d) came into force. Clause (d) has been inserted in sub-section (1) of section 13 and sub-section (5) has also been inserted in the said section with a view to regulating modes and forms in which the funds of trusts or institutions claiming exemption under section 11 or section 12 can be deposited or invested. Clause (d) of section 13(1) provides that if no funds of charitable or religious trust or institutions are invested or deposited or remain invested or deposited in any mode or form other than specified in section 13(5) at any time during any previous year commencing on or after the 20th day of February, 1983 the income of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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