TMI Blog1990 (2) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... e prescribed mode under s. 11(5)/13(1)(d)-firstly because the flat was not registered in the trust's name but in the name of a devotee and, secondly, it continued to be so even after 30th Nov., 1983, (ii) the assignment of copyright in certain books amounted to a business other than a business to which cl. (a) and (b) of sub-s. (4a) of s. 11 apply. To this the CIT(A) added one more ground for denying the exemption, i.e., the investment of the sale proceeds in the purchase of godown was also a business and not an investment in the prescribed mode under ss. 11 and 13. 3. We have heard the parties and considered their rival submissions. The reason for purchasing the flat in Chand Co-operative Housing Society was that the bye-laws of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Society the exact amount to be capitalised cannot be ascertained." It continued to be shown likewise till it was sold in the year under consideration. IT was informed that the information was given to the Charity Commissioner who did not consider it necessary to put it on his record, because the property was not in the name of the institution but in the name of a devotee though for and on behalf of the institution. In these circumstances, the departmental authorities are not justified in holding that the investment by the assessee-trust was not in the prescribed mode. It was an immovable property and merely because it was purchased in the name of a devote it could not be converted into a movable property. This fact has been accepted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Bhagwath Gita in various languages. The assessee's contention is that there was no profit motive and the dominant purpose for publishing the books was not to make profit but to spread the teachings of Bhagwat Gita. The fact, however, is not denied that the assessee had been showing surplus in this activity and, therefore, in our opinion, it cannot be said that there was no profit motive in publishing the books. We, however, agree with the learned counsel for the assessee that the dominant object of the trust was to spread the teachings of Bhagwat Gita and the profit, if any, was to be utilised in carrying out that object. But that would not mean that the assessee did not carry on any business activity. We, therefore, have to see whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his case is apparent from a bare look to the profit and loss account and the balance sheet prepared from the books of account maintained by the assessee. 6. Before paring with the case, we may deal with the observations the CIT(A) in paragraph 19, wherein he has also observed that the business carried on by the assessee was not covered under cl. (B) of sub-s. (4A) of s. 11. He has not given any reasons for such an observation. The said cl.(b) provides that the business carried on by an institution and the work in connection with the business should be mainly carried on by the beneficiaries of the institution. The work in connection with the business has been carried out by the devotees of the institution and in the absence of any materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in sub-s, (5) of s. 11; or (ii) any funds of the trust or institution invested or deposited before the 1st day of March, 1983, otherwise than in any one or more of the forms or modes specified in sub-s. (5) of s. 11 continue to remain so invested or deposited after the 30th day Nov., 1983; or (iii) any shares in a company (not being a Government Company as defined in s. 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under Central, State or Provincial Act) are held by the trust or institution after the 30th Nov., 1983: Provided that nothing in this clause shall apply in re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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