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TMI Blog2008 (12) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... Act'). 3. We have heard the rival submissions in the light of the material placed before us and the precedents relied upon. During the relevant period the assessee did claim the exemption under s. 11 of the Act. The assessee was required to invest the funds as per the modes stipulated under s. 11(5) of the Act. It was noticed that the assessee made investment to the tune of Rs. 50 lakhs in M/s Egmore Benefit Fund Society Ltd., 13, Flowers Road, Chennai-84, a concern in which the managing trustee of the assessee and his relatives were directors. Since this investment was not covered by the modes stipulated under s. 11 (5). the AO denied the claim for exemption and made the income exigible to tax under s. 11 (3) of the Act. 4. Adverting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of Rs. 50 lakhs. Ex consequenti it could not be reinvested as per the modes prescribed under s. 11(5) of the Act. 6. While renewing the exemption under s. 80G the CIT had directed the assessee trust to make efforts with the concerned TRO for lifting of the garnishee order so that the sum of Rs. 50 lakhs could be withdrawn from M/s Egmore Benefit Fund Society Ltd. and reinvested in specified securities. The assessee approached the TRO dealing with the case of M/s M.G. Enterprises. It was ascertained that the outstanding taxes were Rs. 7,82,762 representing interest under s. 220(2) of the Act. In its own interest the assessee trust volunteered to pay this amount on 13th Nov., 2006 on behalf of M/s M.G. Enterprises. A copy of the tax payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble Supreme Court has held that the maxim actus curiae neminem garvabit, i.e., an act of Court shall prejudice no man, is founded upon justice and good sense which serves a safe and certain guide for the administration of law. The other relevant maxim is lex non cogit ad impossibilia - the law does not compel a man to do what he cannot possibly perform. The law itself and its administration is understood to disclaim as it does in its general aphorisms, all intention of compelling impossibilities, and the administration of law must adopt that general exception in the consideration of particular cases. 9. It is abundantly clear from the records that the trust did its best to take back the money from M/s Egmore Benefit Fund Society Ltd. M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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