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2018 (5) TMI 1730 - HC - Income TaxExemption u/s 11 - Contravention of Section 13(1)(d) - Dividend income - Tax at margin rate u/s 164 - trust received gift of TISCO Ltd. shares which were subsequently written off. - Whether tax at margin rate u/s 164(2) is to be levied on the income earned from non-exempt asset - whether holding of ineligible assets is sufficient to attract the provisions of Section 13(1)(d)(iii) - Held that:- When the shares are forming part of corpus after 1st June, 1973, question of accretion does not even arise thus the investment in right-issue cannot, by any stretch of imagination, by equated with the phrase accretion by way of bonus shares. Since dividend income is exempt, no income remains taxable at Maximum Marginal rate - Decision of tribunal [2014 (11) TMI 444 - ITAT JAIPUR] confirmed - Decided in favor of assessee.
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