1979 (11) TMI 141 - AT - Income Tax

Summary

The appeals were against the order of the AAC granting the assessee exemption under s. 10(22) and s. 13(2) of the IT Act, 1961. The revenue appealed, arguing the assessee was not entitled to exemption under s. 11 due to s. 13(2)(h) prohibition. However, it was found that s. 13(2)(h) applied only to investments in a firm's capital, not loans. The ITO was directed to grant exemption under s. 11 if trust funds were given on adequate security and interest. The appeals were dismissed.