9911796707
TMI Blog2022 (7) TMI 1549X X X X Extracts X X X X X X X X Extracts X X X X ..... any restrictions. It is the specific case of the appellant/Revenue that the assessee is holding shares and other investments in private companies, which are outside the scope of section 11(5) and hence, they are not entitled for the benefit of section 11 as provided in section 13(1)(d), for the assessment years under consideration. Whereas the assessee stated that they are not holding any impermissible investments and they had not violated the provisions of section 11(5), as alleged. In support of the same, a memo dated 28-6-2022 was filed detailing the shares purchased and sold by the assessee in the form of a chart. Such being the submissions made by the parties, this court, in the light of the factual matrix and as agreed by the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(d)(ii) read with section 11(5) of the Income-tax Act? (b) Whether on the facts and circumstances of the case, the Tribunal was right in deciding that no time limit was provided for disinvesting the impermissible investment without considering the proviso to section 13(1)(d) of the Act? (c) Whether on the facts and circumstances of the case, the Tribunal was right in deciding that holding of impermissible investment is not a violation of section 11(5) of the Act? 3. The respondent/assessee is a registered society under section 12AA of the Income-tax Act, 1961 (in short, the Act ) and running several educational institutions. They were enjoying the benefit of exemption under section 10(22) till the assessment year 1998-99. Consequent to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer denied exemption under section 11 for the reason that the investments were made in violation of section 13(1)(d) r/w section 11(5). However, the CIT(A) allowed the exemption to the assessee treating the impermissible investments as not made in violation of section 13(1)(d), which was also erroneously confirmed by the ITAT, by observing that the assessee was hitherto availing exemption under section 10(22) and that, there was no specific legislation providing a time limit for disinvesting the impermissible holdings. Therefore, the learned counsel submitted that these appeals will have to be allowed by setting aside the order of the appellate authorities. 5. On the other hand, the learned counsel appearing for the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year 1998-99. However, for the assessment years in question, viz., 1999-2000, 2000-01, 2001-02 and 2002-03, the assessing officer inter alia denied exemption under section 11, stating that there had been violation of the provisions of section 13(1)(d) r/w section 11(5) of the Act, as the assessee had kept its investments in the form of shares of companies. It was further held by the assessing officer that though the assessee was granted time till 30-3-2001 for bringing its investments in the modes prescribed under section 11(5) at the time of seeking registration under section 12AA, they failed to do so even at the end of the previous year ending 31-3-2002 and therefore, they are dis-entitled to claim exemption under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on under section 11, though they enjoyed the said benefit till the assessment year 1998-99, without any restrictions. It is the specific case of the appellant/Revenue that the assessee is holding shares and other investments in private companies, which are outside the scope of section 11(5) and hence, they are not entitled for the benefit of section 11 as provided in section 13(1)(d), for the assessment years under consideration. Whereas the assessee stated that they are not holding any impermissible investments and they had not violated the provisions of section 11(5), as alleged. In support of the same, a memo dated 28-6-2022 was filed detailing the shares purchased and sold by the assessee in the form of a chart. Such being the submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
