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2014 (8) TMI 907 - HC - Income TaxRevised return - Whether the revised return filed on 10.01.2007 was binding on the assessee, as the Trust was barred and could not have filed a revised return – Held that:- Assessee contended that the statement was made on wrong legal advice and there was no violation of Section 13(1)(d) – relying upon National Thermal Power Company Limited Versus Commissioner of Income-Tax [1996 (12) TMI 7 - SUPREME Court] - the legal issue, which does not involve disputed facts, can be entertained even at the appellate stage - there cannot be any doubt or debate, that the claim and submission could have been raised by the assessee before the appellate authorities – Decided against Revenue. Shares gifted or donated - Whether there was violation of Section 13(1)(d) of the Act as the assessee was gifted or donated 16,50,000/- shares of Nicholas Piramal India Limited by way of gift – Held that:- The letter in categorical terms states that the gift would be towards corpus of the assessee trust – Tribunal was rightly of the view that there was a specific direction that 16,50,000 shares would form part of the corpus and should not be treated as voluntary contribution - right from the very beginning that even when the return of income was filed on 30.10.06, the stand of the respondent assessee was that 16,50,000 shares of Nicholas Piramal India Limited were gifted towards and to form part of the corpus of the trust - the assessee trust had sold 4 lac shares in terms of Section 49(1)(ii) - The period of holding of the donor had been taken into consideration and the costs of acquisition was taken as “Nil” but the gain from transfer of the shares were exempt u/s 10(38) of the Act – Decided against Revenue. Exemption u/s 11 to 13 - Whether the assessee had violated Section 13(1)(d) of the Act and therefore should be denied exemption under Section 11 to 13 of the Act – Held that:- The shares were acquired by the assessee on 03.08.05 - as per Clause (iia) to the proviso, Section 13(1)(d), would be applicable, post period of one year from the end of the previous year in which the shares were acquired - there would be no violation of Section 13(1)(d) on the part of the respondent assessee till 31.03.07 - the assessee had rightly claimed that they had not violated Section 13(1)(d) – relying upon Director of Income Tax versus Shree Radha Krishan Charitable Trust [2011 (3) TMI 1064 - DELHI HIGH COURT] - the assessee has not claimed exemption from benefit of Section 11 to 13 of the Act with effect from 2007-08 onwards – Decided against Revenue.
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