1993 TAX. L. R. 623 ::(1994) 206 ITR 152 ::(1994) 73 Taxman 380 ::(1994) 123 Taxation 195

Calcutta High Court

Hon'ble Judge(s): Ajit K. Sengupta, Shyamal Kumar Sen , JJ

(A) Charitable trust - Capital gains - Exemption on Investment in prescribed assets - Deposit in public sector company is "asset" and being permitted capital asset, exemption can be claimed. Income-tax Act (43 of 1961) , S.11(1A), S.11(5),— An investment or deposit in public sector company is first an "asset" and second a "capital asset" and third a permitted capital asset under the special law relating to the assessment of charitable or public religious trust. As regards capital gains the investment or deposit in any public sector company appears as one of the permitted forms or modes of investment or deposit, under S. 11(5) of the Income-tax, and in view of S. 2(14) of the Act "investment or deposit" can be treated as "capital asset", which includes property of any kind held by an assessee. Hence, it cannot be said that the investment by way of deposit in public sector company cannot be treated as new asset acquired for purpose of exemption from capital gains under S. 11(5) of the Act.(Para 20 22 25) (B) Charitable trust - Capital gains - Exemption on investment in prescribed assets - Investment in Unit Trust made during accounting period - Issue of units after expiry of accounting year is immaterial - Exemption cannot be refused on that g....