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2016 (6) TMI 517 - AT - Income TaxExemption u/s 11 - Investment in shares in a Private Limited Company - Held that:- Investment in shares in a Private Limited Company if made out of the profit of business then the exemption benefit shall not be denied to the assessee. In the instant case the assessee claimed to have made the investment out of the fund representing the profit and gains of assessee’s business and the Ld. DR failed to bring anything on record contrary to the point of argument of the ld. AR. Accordingly, in our considered view, we find that there is no violation of the provisions of Section 13 of the Act and the assessee is entitled for exemptions under section 11 of the Act. We also find that the Private Limited Company was formed for the furtherance of the objects of the assessee and both the societies were the shareholders in the company. None of the Director had any substantial interest in the company. The members of the assessee society were the directors only in the representative capacity in the company. Therefore, in the instant case benefit under section 11 of the Act cannot be denied. Similarly, we also find that the assessee has been claiming the exemptions benefit under section 11 of the Act for the last several years but the same was not denied therefore in our view principle of consistency should be applied in the instant case. - Decided in favour of assessee.
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