IT : Where will in question, transferring shares in a foreign company in favour of trust, was under legal dispute, there was no violation of section 11(5)
IT : Advance paid for raising a memorial by trust could not be treated as an investment covered under section 11(5)
■■■
[2014] 52 taxmann.com 98 (Delhi)
HIGH COURT OF DELHI
Director of Income-tax (Exemption)
v.
Khetri Trust*
SANJIV KHANNA AND V. KAMESWAR RAO, JJ.
IT APPEAL NO. 162 OF 2001†
JULY 17, 2014
Section 11, read with section 13, of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under (Investment under section 11(5)) - Assessment year 1991-92 - One 'R' by a will bequeathed his entire property including shares in a foreign country to assessee-trust - However, said will of 'R' was under challenge in probate proceeding and same was pending adjudication - Commissioner (Appeals) held that there was no violation of section 11(5) as till will was probated and it was affirmed that will was genuine, trust would not acquire legal right on foreign shares - Whether there was no infirmity in impugned order - Held, yes [Paras 6,9 and 10] [In favour of assessee]
Section 11, read with section 13, of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under (Investment under section 11(5)) - Assessment year 1991-92 - Assessee trust paid a sum as advance to 'B' company for raising a memorial of a person - Said project, however, was not completed because of ongoing legal dispute - Appellate authorities held that since intent and purpose behind said payment was not investment, there was no violation of section 11(5) - Whether there was no infirmity in impugned order - Held, yes [Paras 7 and 10] [In favour of assessee]
Rohit Madan and P. Roychaudhuri, Advocates for the Appellant. Piyush Kaushik, Advocate for the Respondent.
IT : Advance paid for raising a memorial by trust could not be treated as an investment covered under section 11(5)
■■■
[2014] 52 taxmann.com 98 (Delhi)
HIGH COURT OF DELHI
Director of Income-tax (Exemption)
v.
Khetri Trust*
SANJIV KHANNA AND V. KAMESWAR RAO, JJ.
IT APPEAL NO. 162 OF 2001†
JULY 17, 2014
Section 11, read with section 13, of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under (Investment under section 11(5)) - Assessment year 1991-92 - One 'R' by a will bequeathed his entire property including shares in a foreign country to assessee-trust - However, said will of 'R' was under challenge in probate proceeding and same was pending adjudication - Commissioner (Appeals) held that there was no violation of section 11(5) as till will was probated and it was affirmed that will was genuine, trust would not acquire legal right on foreign shares - Whether there was no infirmity in impugned order - Held, yes [Paras 6,9 and 10] [In favour of assessee]
Section 11, read with section 13, of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under (Investment under section 11(5)) - Assessment year 1991-92 - Assessee trust paid a sum as advance to 'B' company for raising a memorial of a person - Said project, however, was not completed because of ongoing legal dispute - Appellate authorities held that since intent and purpose behind said payment was not investment, there was no violation of section 11(5) - Whether there was no infirmity in impugned order - Held, yes [Paras 7 and 10] [In favour of assessee]
Rohit Madan and P. Roychaudhuri, Advocates for the Appellant. Piyush Kaushik, Advocate for the Respondent.
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