9911796707
TMI Blog1992 (12) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO for that year. Two more appeals arise out of the order of the CIT(A) relating to asst. yrs. 1985-86 and 1986-87 in respect of order passed by the ITO under s. 143(3) r/w s. 263 of the IT Act, 1961. Thus, all these appeals are interlinked and connected and they involve common issue. 2. The common issue involved is whether the charitable trust would lose the exemption if any shares in a company other than Government company or a corporation established by or under a Central, State or Provincial Act are held after 30th day of Nov., 1983 or not. For this purpose, the bonus shares allotted after the cut out date 30th Nov., 1983 would be regarded as shares held in a company. 3. Admittedly, the assessee trust held as on 1st June, 1973 cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July, 1986 taking the total wealth as nil, on the ground that it has erroneous insofar as it was prejudicial to the interest of Revenue as the WTO has wrongly held that the trust held the shares by way of donation received before 1st June, 1973. According to the CWT, bonus shares received by the assessee were not held as corpus of the trust as on 1st June, 1973 in terms of cl. (i) of proviso to s. 13(1)(d)(iii) so as to exempt the income of the trust because they were held as such even after the cut out date, namely, 30th Nov., 1983. Since the WTO has not taken into account the corresponding wealth tax provision of s. 21A(iii) r/w s. 13(1)(d)(iii) of the IT Act and allowed exemption, such order passed by him was erroneous and hence prejudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... June, 1973, but they should be regarded as having been held after 30th Nov., 1983. The bonus shares also could not be regarded as shares of Government company. Therefore, he held that provisions of s. 13(1)(d)(iii) were violated. Hence, the appeals by the assessee to the Tribunal. 8. At the time of hearing, Shri S.N. Inamdar, learned counsel for the assessee reiterated the grounds taken and submitted that the Finance Act, 1992, inserted cl. (ia) to proviso to cl. (iii) of s. 13(1)(d) with retrospective effect from 1st April, 1983 to the effect that any accretion to the shares forming part of the corpus mentioned in cl. (i) by way of bonus shares allotted to the trust or institution would be saved from the prohibition contained in sub-cl. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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