Director of Income Tax vs Sri Satyanarayana Trust

N.V. Balasubramanian, J.—In compliance with the direction of the Court the income tax Appellate Tribunal was stated the cases and

referred the following common question of law :--

Whether in the circumstances and on the facts of the case, the Tribunal was right in law in holding that there was no violation of the conditions

provided u/s 13(1)(d) of the income tax Act and hence the assessee is entitled for exemption u/s 5(1)(i) of the Wealth-tax Act for the assessment

years 1985-86 and 1986-87

Learned counsel for the Revenue has fairly submitted that the issue raised is covered against the Revenue by the decisions of the Court in Director

of Income Tax (Exemptions) Vs. Sir M. Ct. Muthiah Chettiar Family Trust, , wherein this Court has held that there will be no contravention of

section 13(1)(d) of the income tax Act in view of the extension of time for complying with the specified pattern of investment upto 31st March

1993.

We therefore hold that the order of the Tribunal that the assessee is entitled to exemption u/s 5(1) of the Wealth-tax Act is in accordance with

the decisions of this Court. We answer the question of law referred to us for both the assessment years in the affirmative, against the Revenue and

in favour of the assessee. No costs.