9911796707
TMI Blog2017 (9) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... on holding that the assessee have violated the provisions of investment contained in Sec. 13(1) (d)/11(5) of Income Tax Act,1961 which is not true, since there was no investment out of the funds of Education. 2. The appellant craves leave to add, alter & amend the grounds of appeal." 2. Briefly stated the facts are that the assessee granted exemption u/s 10(23C)(vi) 1961, (hereinafter referred to as the Act). Subsequently, the said exemption was withdrawn, on the ground that the assessee was not holding the fund in specified mode. 3. The Ld. CIT relying upon the decision of Delhi High court in the case of Shree Radha Krishan Charitable Trust in ITA No. 303/JP/2008. Aggrieved by this, the assessee is in appeal before this Tribunal. Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Shree Radha Krishan Charitable Trust, Delhi. The said decision was in favour of the assessee. Since the rescinded notification order was given within one year from the date of investment, therefore, this is not applicable in this case. Based solely on the said decision, the Ld. CIT invoked and rescinded certificates of the assessee. Now, we submit the legal position which is decided by the different courts, Hon'ble ITAT: 1. ITAT, Jaipur -Santokba Durlabhji Memorial Hospital Vs. Department. Similar issue came in this case in the appeal before the Hon'ble ITAT, Jaipur. The issue was that the Trust invested certain amount in the shares of a listed Company - called TISCO. In the said investment it was explained by the Trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PR/14-15 for the year 2007- 08. CIT(A) - III, Jaipur in appeal No. 759/JPR/15-16 for the year 2008- 09. and on the basis of the decision of the Hon'ble ITAT in the cae of Santoba Durlabhji Memorial Hospital it was decided that only the income from ineligible investment can be taxed and the benefit of exemption cannot be denied to the other income of the Trust. The said decision was upheld by the Hon'ble ITAT in ITA No. 383 and 384 A.Y. 2006-07 & 2007-08. In view of the above we submit that the Ld. CIT(E) was totally wrong in holding that Trust lost exemption. We also submit that the same issue came before the Hon'ble Karnataka in the case of Muller's Charitable Trust, Kankanedi and in its decision it was held that the exemption can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve and in view of this we submit that the Ld. CIT(E) has grossly erred on law to rescind the certificate issues u/s 10(23C). In summary we submit that:- 1. The investment in Shares is not made out of income of educational institution. 2. The Shares were received in gift were in look period hence perforce kept in investment. 3. When Shares are not part of income invested out of educational income then there is nothing to attract 13th proviso of Sec. 10(23C). 4. The Ld. AO have which discussed by the Ld. CIT(A) in appeal order already dealt this issue in the Assessment Order for the AY 2006-07 & 2007-08 and that order of Ld. CIT(A) has been upheld by the Hon'ble ITAT in ITA No. 383 & 384 as such on the same basis the decision to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of Section 13 of the Act, the authorities can withdraw exemption u/s 11 & 12 of the Act. In the present case the assessee has not disputed the fact that the shares of M/s Om Metal Infra Project Ltd. would not fall in the category of shares in a public sector company. 5.3 Ld. Counsel for the assessee placed reliance on the judgment of the Hon'ble Karnataka High Court in the case of Commissioner of Income Tax Vs. Muller's Charitable Institutions this case is related to denial of exemption, but not on the issue of rescinding exemption granted u/s 10(23C)(vi). The decision of the Tribunal in the case of M/s Santokba Durlabhji in ITA No. 241 & 242/JP/2014 is also related with the taxability of income arising from the investment, which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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