TMI Blog1991 (12) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... posed of in accordance with law. 3. Shri K. Balakrishnan, the ld. Departmental Representative, appeared before us and submitted that the assessee has violated the provisions of section 11(5) of the IT Act, 1961 (hereinafter called the Act). Therefore, exemption as contemplated under section 11 of the Act cannot be granted to the assessee. Our attention was invited to the observation made by the ITO while disallowing the claim. The relevant portion reads as under : " Since the amount credited to corpus fund are still to be received by the assessee, the amount remains with the Surajba Ch. Trust in the form of investment. This form of the Investment is prohibited under section 11(5) hence the assessee is not entitled for the benefits of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment " implies investment for a given term, but that cannot be applied to a balance lying to the credit of the assessee. It connotes act of investing. It is defined by Webster in his dictionary as meaning 'The laying-out of money in the purchase of some species of property, usually of a permanent character'. Skeat, in his Etymological Dictionary, says 'invest' means 'to lay out money' and in Wharton's Law Lexicon the same meaning is given. In Latham's 'Johnson's English Dictionary' the meaning given of 'invest' is 'Putting out capital (i.e., establishing a vested interest in it) for the purpose of obtaining interest for it'. There is no statutory definition of the word 'investment'. The word must therefore be read in its popular meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factual aspect of the matter, we are of the opinion that the use of term 'advances to S. P. Trust' as used in the balance sheet of the assessee trust was misnomer. This mistake of expression cannot be used against the assessee. Nomenclature is not a decisive guide. It is incumbent on the part of the Assessing Officer to penetrate the veil and find out the real nature of the transaction. In our opinion, amount in question cannot be treated as 'investment'. Having regard to this fact, we are of the opinion, that the case of the assessee is beyond the ken of section 11(5). The assessee trust is, therefore, entitled to get benefit under section 11 of the Act. We uphold the order of the CIT(Appeals). In the result, appeal of the revenue stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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