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2009 (6) TMI 610 - AT - Income TaxExemption u/s 11 - shares and bonds - possession on account of death of the inmates - Held that: - assessee received certain shares and bonds of small values, which statedly came into its possession on account of death of the inmates. Since there was no manifest transfer of the shares and bonds to the assessee, the same were not taken into account in the books of account. The shares were of small value and some were in odd lots which could not be disposed of immediately and, therefore, they continued to remain in possession of the assessee. Some of the securities were got transferred in the name of the assessee. That, however, does not mean that the assessee manifestly became owner of the shares. The shares and bonds belonged to the deceased intimates which normally would have gone to their legal heirs who were not traceable. This was the reason for non-entering the shares etc. in the books. The bonds and shares were also not saleable immediately. In these circumstances, the assessee could not be taken to be the de jure owner of the shares. Although, the word used is “held”, we are of the view that these words implies ownership of the assessee to the exclusion of all others, which is not the case here. In these circumstances, we are of the view that total denial of exemption u/s 11(1)(a) on the ground that the shares were held by the assessee will be against even the language of the provision. - Benefit of exemption allowed to assessee.
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