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TMI Blog2009 (6) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... 26-11-2007 under the provisions of section 143(3) of the Income-tax Act, 1961. The revenue has taken up two substantive grounds in the appeal. Ground Nos. 1 and 2 are to the effect that on the facts and in the circumstances of the case, Ld.CIT(A) erred in holding that the assessee has not violated the provisions contained in section 13(l)(d)(iii) and, thus, allowing exemption under sections 11 and 12 of the Act. It is mentioned that when the provisions are clear and not amenable to two views there is no need to rely on any rule of construction for interpreting the section. Ground No.3 is to the effect that the Ld.CIT(A) erred in deleting the disallowance of Rs. 27,58,384, made by the Assessing Officer on account of utilization of the grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll quantities. The assessee was also not physically in possession of all the scripts so as to enable it to sell them and in any case the sale value was negligible. Thus, the assessee was in a helpless situation where it could not sell the shares and bonds with a view to invest the sale proceeds in the prescribed securities as per the provisions containing section 11(5). In these circumstances, it was held that on simple reading of law, one may come to a conclusion that the provision contained in section 13(1)(d)(iii) are applicable, but, it is important to appreciate the intention of the legislature in making the retrospective amendment. It is not possible for the legislature to take all circumstances into account. The case of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presumed object of the legislature. If the legislature has failed to clarify its meaning by the use of the appropriate language, benefit must go to the taxpayer. It is settled law that in case of doubt, that interpretation of a taxing statute which is beneficial to the taxpayer must be adopted. The case of the Ld.DR was that the word "held" in section 13(1)(d)(iii) is unambiguous and, therefore, while interpreting it, no word can be supplied which does not exist in the statute. Further, he relied on the decision of the Apex court in the case of CAIT v. Plantation Corpn. of Kerala Ltd. [2001] 247 ITR 1552 in which it was, inter alia, held that as long as there is no ambiguity in the statutory language, the court cannot resort to interpretati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case was that by applying principle of ajusdem generis, for harmonious interpretation of the three sub-clauses, which should get the same colour, it will be clear that sub-clause (iii) should also become applicable only when the funds of the trust are invested in securities other than the securities mentioned in section 11(5) of the Act. In this connection, our attention was also drawn towards notes of clauses to Finance Bill, 1983, which mentions that sub-clause (c) seeks to insert a new sub-section (5) which provides for forms and modes of investing or depositing, being broadly the same as those specified in clause (a) of sub-section (5) of section 13 of the Income-tax Act. The list of specified forms and modes as contained in the exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and bonds of small values, which statedly came into its possession on account of death of the inmates. Since there was no manifest transfer of the shares and bonds to the assessee, the same were not taken into account in the books of account. The shares were of small value and some were in odd lots which could not be disposed of immediately and, therefore, they continued to remain in possession of the assessee. Some of the securities were got transferred in the name of the assessee. That, however, does not mean that the assessee manifestly became owner of the shares. The shares and bonds belonged to the deceased intimates which normally would have gone to their legal heirs who were not traceable. This was the reason for non-entering the sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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