TMI Blog2000 (5) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1988-89. Prior to the said assessment period, all through assessments were completed under section 143(1) at "nil" income. The assessee is a voluntary group which in association with other voluntary organisations stages plays to educate people on various social problems. During the assessment year in question, the assessee-society had given Rs. 50,000 to Mahila Haat to which the dispute relates. An application of income was held to be to the extent of Rs. 5,69,186 as against Rs. 7,94,200 claimed by the assessee. The Assessing Officer held that there was infringement in terms of section 13(1)(d) read with section 11(5) of the Act, and as such benefit under section 11 was denied. The Commissioner of Income-tax (Appeals) XVI (in shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with the requests, the assessee sent the amount to Mahila Haat as certified by Mahila Vikas Sangh. The amount was utilised for organising a seminar for the Mahila Haat. Mahila Vikas Sangh has been granted exemption under section 80G by the Commissioner of Income-tax, Patna. The bye-laws of Mahila Vikas Sangh are similar to those contained in the memorandum of association of the assessee-society. Since the amount was utilised for similar objects as available in the case of the assessee, its stand was that the same constituted application of income. The Tribunal recorded a positive finding that the expressions "investment" and "deposit" do not cover a transaction of the nature involved at hand. In order to appreciate the submissions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elopment in India and which is approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36 ; (ix) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and which is approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36 ; (x) investment in immovable property.... (xi) deposits with the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964) ; (xii) any other form or mode of investment or de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing part of the corpus mentioned in clause (i), by way of bonus shares allotted to the trust or institution ;" The expressions used in both the provisions quoted above, are "investment" and "deposit". The former expression means to lay out money in business 'With a view to obtain an income or profit. Deposit, on the other hand, means that which is placed anywhere, as in any one's hands for safe-keeping, something entrusted to the care of another. These two expressions have been used in a cognate sense and have to be understood as such. In order to constitute an investment the amount laid down should be capable of and result in any income, return or profit to the investor and in every case of investment, the intention and positive act on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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