Cit vs Sir Shankar Lal Foundation
2001 Latest Caselaw 1304 Del

Citation : 2001 Latest Caselaw 1304 Del
Judgement Date : 29 August, 2001

Delhi High Court

Cit vs Sir Shankar Lal Foundation on 29 August, 2001

Equivalent citations: 2001 119 TAXMAN 723 Delhi

Author: A Pasayat

JUDGMENT

Arijit Pasayat, C.J.

Heard.

2. At the instance of the revenue, the following questions have been referred for opinion of this court under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), by the Tribunal, Delhi Bench 'A':

"1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the assessed was not covered by section 13(2)(h) of the Income Tax Act, 1961, or any other provisions of section 13 and thereby allowing the claim for exemption from tax of its dividend income under section 11 of the Income Tax Act ?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that Orissa Textile Mills Ltd. was not a prohibited concern as the persons specified in section 13(3) did not have a substantial interest within the meaning of clause (i) of Explanation 3 to section 13 of the Act and, accordingly, treating the assessed's income as exempt under section 11 of the Income Tax Act ?"

Dispute relates to the assessment year 1976-77.

3. We had occasion to deal with the assessed's case in IT Reference Nos. 169-170 of 1981 for the assessment years 1974-75 and 1975-76. In view of the decision in the said case (decided on 7-3-2001), we answer the questions referred in the affirmative, in favor of the assessed and against the revenue.

4. The reference stands disposed of.