9911796707
TMI Blog2017 (12) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... not transferring of shares in favour of the assessee for last 14 years and whether any litigation was going on w.r.t. these shares. It is also not emanating from records as to the control exercised by the assessee over the immovable property being flat no. 6 at Ben Nevis Warden Road , Mumbai through holding of 100 shares of the said company M/s Warden Polyclinic Private Limited .These propositions are no doubt relevant proposition for adjudicating the dispute between rival parties and fastening of tax liability on the assessee. Thus, keeping in view factual matrix of the case and in the interest of justice, we are inclined to set aside and restore this matter back to the file of the AO for fresh adjudication of the dispute - Decided in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration of ₹ 2,00,00,000/- on account of sale of 100 shares of warden Polyclinic was claimed claimed to be exempt u/s 11(1A). The AO issued notice u/s 142(1) giving w.r.t. above transaction and asked assessee to furnish copy of declaration with specific direction that the donation of 100 shares of said company is for the purposes of corpus of the assessee trust and the assessee was asked to furnish documents in support of its claim of exemption. The assessee submitted following documents which found mentioned in the AO order at page 3: a) Copy of declaration dated 1-9-2009 with specific direction that the donation of 100 shares of Warden Road Polyclinic Pvt. Ltd. is for the purposes of corpus of the assessee trust is attached. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information. We trust the above information will meet your requirements. The AO observed that it is not permissible for the trust to hold shares u/s 13(1)(d). The AO observed that the assessee has claimed to have received donation of 100 shares of M/s Warden Polyclinic Private Limited attached to the flat no 6 at Ben Nevis Warden Road from the estate of late Dr. Hilla Banaji on 01-09-2009. The said shares have been sold on 04-09-2009 for ₹ 2,00,00,000/- . The AO observed that the said amount of ₹ 2,00,00,000/- has been claimed to be invested in Flat No. 802 B at Orchid Towers , Mumbai and exemption u/s 11(1A) has been claimed. The AO observed that it is undisputed that the trust was holding equity shares for the period 01- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption u/s 11 of the 1961 Act, vide appellate order dated 29-09-2015 passed by learned CIT(A). 4. Aggrieved, the assessee is in appeal before the tribunal. The learned counsel for the assessee submitted that the AO has denied exemption u/s. 11 and learned CIT(A) has upheld the order of the AO. It was submitted that it was held by the authorities below that conditions u/s 13(1)(d) were not fulfilled. It was submitted that the assessee is registered u/s 12A. Our attention was drawn to para 5 of the AO order and to the appellate order of learned CIT(A) at page 2 and also para 5.2 of learned CIT(A) order. It was explained before the tribunal that the will was executed by donor Dr. Hilla Banaji on 06-09-1995 in favour of the assessee and sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee were effected in 2009 i.e. after 14 years but in the interim there was no litigation . Our attention was also drawn to Section 11(5)(x) wherein investment in immovable property is considered as one of the approved forms and modes of investments approved u/s 11(5). It was submitted that the assessee has reinvested the entire amount in immovable properties as contemplated u/s 11(1A) as new capital asset is acquired. The learned DR on the other hand would rely on the order of learned CIT(A) . It was submitted that the new arguments /propositions has been taken by learned counsel for the assessee which were not taken before the authorities below and which are factual in nature requiring investigation of facts and the matter can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivate Limited only on 01-09-2009. It is claimed that there was no litigation w.r.t. these shares since 1996 when will of Dr Hilla Banaji was probated by court in its favour till the shares were transferred in assessee s favour in 2009 i.e. for inter-se 14 years. The said shares were claimed to have been sold on 04-09-2009 for ₹ 2,00,00,000/- which was claimed to be invested in flat no. 802 B at Orchid Towers , Mumbai and thus consideration of ₹ 2,00,00,000/- on account of sale of 100 shares of warden Polyclinic was claimed to be exempt u/s 11(1A). Thus it is claimed that the assessee has in-fact held and transferred immovable property attached with these shares situated at flat no. 6 at Ben Nevis Warden Road, Mumbai. Reference w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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