COMMISSIONER OF INCOME TAX Vs. KUMUDAM ENDOWMENTS

JUDGEMENT

(1.) ACCORDING to the Revenue, the assessee should be penalised in anticipation of a likely violation. We are unable to appreciate this argument or subscribe to the same.

(2.) THE assessment year with which we are concerned is the assessment year 1986-87. THE provisions of Section 11(5) of the Income-tax Act were amended with retrospective effect from April 1, 1983, by the amending Act of 1991 and the time for disinvestment was extended up to March 31, 1993. During the assessment year with which we are now concerned, the law was that the charitable trust could hold investments contrary to the provisions of Section 11(5) of the Act, but, was under an obligation to dis-invest on or before March 31, 1993, and, thereafter, hold the investments in the modes permitted by law.

(3.) THE tax case petitions are, therefore, dismissed.