S.K. Chander, Accountant Member - (1.) THIS appeal by the assesses is directed against the order of the CIT(A)-IX, New Delhi dated 17-2-1988 relating to the assessment year 1984-85. In the appeal of the assessee, the issue which primarily needs our attention was crystallized in the Court as under: Whether, on the facts and in the circumstances of the case, the assessee-trust is not saved by the proviso to Section 13(1)(d)(ii) of the Income-tax Act, 1961 ?
(2.) Before we come to grips with this issue, it would be beneficial to keep in focus the factual canvas of the case, which is as under. The assessee-trust is following calendar year as the previous year. It is common ground that for the previous years ending on 31-12-1972 and 31-12-1973, the assessee-trust held the following investments made out of its corpus: Sl. No. Accounting year Corpus funds Investment/Loans/Advances out of corpus funds 1. 31-12-1972 Rs. 7,81,728 M/s Jay Engg. Works Ltd. Rs. 7,30,000 2. 31-12-1973 Rs. 11,27,801 M/s Jay Engg. Works Ltd. Rs. 10,55,000. The assessing officer found that by the accounting year ending 31-12-1980, the deposits with M/s Jay Engg. Works Ltd. had gone up to Rs. 22,10,000.
(3.) IN the accounting year ending on 31-12-1981 relevant to the assessment year 1982-83, the assessee-trust withdrew an amount of Rs. 13,75,000 out of the aforesaid deposits of Rs. 22,10,000 with M/s Jay Engg. Works Ltd. As a result of the above withdrawal, the corpus deposits with M/s Jay Engg. Works Ltd. as on 31-12-1981, stood reduced to Rs. 8,35,000. This entire amount with M/s Jay Engg. Works Ltd. during the year ending 31-12-1982 was withdrawn and out of it a sum of Rs. 8 lakhs was deposited with M/s DCM Ltd. Out of the amount of Rs. 8 lakhs deposited in the accounting year ending 31-12-1982, Rs. 6 lakhs continued to remain deposited with M/s DCM Ltd. as on 31-12-1983.;