9911796707
TMI Blog1982 (2) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1971-72 for which the accounting year ended 28-9-1971. In this appeal the assessee has taken two grounds challenging the decision of the Commissioner (Appeals), which are dealt with hereunder: 2. The first ground relates to the assessment of capital gains of Rs. 90,610 as income which arose on sale of investments to Mohini Thapar Charitable Trust, Calcutta. The assessee claimed exemption of capital gains as the assessee invested the entire sale proceeds of the investments, including capital gains, with Mohini Thapar Charitable Trust, Calcutta, at interest and, therefore, satisfied the condition in section 11(1A)(a) of the Income-tax Act, 1961 ("the Act"). This plea did not prevail with the ITO who held that the assessee has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the orders of the authorities. 5. We have duly considered the facts of the case and the rival contentions urged on behalf of both the parties. Section 11 excludes income derived from property "held under trust wholly for charitable or religious purposes" to the extent to which such income is applied to such purposes in India. Therefore, the property, income from which is the subject-matter of exemption, is to be necessarily held under trust. Presuming that the investments sold by the trust to Mohini Thapar Charitable Trust were held under trust, on the sale of such investments there is divesting or transferring of such assets which were held in trust. The sale proceeds of the investments along with other funds were deposited with Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposits with Mohini Thapar Charitable Trust were actually held under trust wholly for charitable or religious purposes. In the circumstances, therefore, we agree with the decision of the lower authorities and, accordingly, the assessment of capital gains is confirmed. 6. The next ground relates to the assessment of voluntary contributions of Rs. 2 1/2 lakhs received from Mohini Thapar Charitable Trust as income of the assessee-trust. The ITO has assessed such voluntary contributions on the ground that the exemption under section 11 was not available to the assessee-trust. 7. On appeal, it was contended that the entire contributions were exempt, but the Commissioner (Appeals), did not accept such contention and confirmed the assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table or religious purposes. This provision was quite independent of section 11 and, therefore, the conditions laid down in section 11 were not required to be fulfilled by the assessee. The learned departmental representative supported the orders of the authorities on this point. 8. After due consideration of the rival submissions and the paper book filed, we hold that section 12(2) was not attracted so far as the voluntary contributions received by the trust were concerned and section 12(1), as it existed in the year of account, exempted such contributions. Therefore, there is merit in the contention of the learned counsel for the assessee and, accordingly, we hold that the authorities were not justified in assessing the voluntary contri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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