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2016 (4) TMI 1337 - AT - Income TaxExemption u/s 11 denied - assessee has violated the provisions of the Act under section 11(5) r.w.s. 13(1)(d) by investing its funds to the extent of ₹.17,00,000/- in Kumari Chit Fund - Held that:- On an identical issue and similar facts and circumstances, the Coordinate Bench of the Tribunal in the case of DDIT (EXEMPTIONS) -I CHENNAI VERSUS THE INDIA CEMENTS EDUCATIONAL SOCIETY DHUN BUILDINGS [2016 (3) TMI 73 - ITAT CHENNAI] wherein held that the requirements of sec. 13(1)(c)(ii) is that the trust should apply the funds in a concern in which they themselves are interested, if there was a mandatory provision in the trust deed for such a purpose. Such a mandate in the trust deed should have existed and could not have been brought in by amending the trust deed at a later stage after that crucial date, even if the trust deed authorized the trustees to amend the trust deed to bring in the mandatory condition or requirement for them to invest funds of the trust in a concern in which they might be interested. In is admitted fact in this case that there is a violation of sec. 13(1)(c) of the Act as the assessee invested funds in a limited company where the trustee is the Managing Director and his wife is a Director - decided against assessee.
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