Wular Trust vs Additional Director Of Wealth Tax … on 23 March, 2016

W.P. (C) 2303/2001 & Connected matters Page 6 of 16
2. The facts in all these petitions are more or less similar. Illustratively, the
facts in Writ Petition (Civil) 2303 of 2001 are discussed in detail.

3. The Petitioner in W.P. (C) No. 2303 of 2001, Wular Trust, was formed on
12th November 1987. It obtained registration as a charitable trust under
Section 12A (a) of the Income Tax Act, 1961 (‘IT Act’) on 21st March 1988.
The Petitioner-Trust was holding shares of Bajaj Auto Limited (‘BAL’) as
on 31st March 1991. In terms of Section 11 (5) of the IT Act read with
Section 13 (1) (d) of the IT Act, the shares held by the charitable trusts were
required to be invested in conformity or modes that had been specified in
Section 11 (5) of the IT Act, failing which, the exemption provided to the
charitable trusts from payment of income tax would be forfeited.

Source: Indian Kanoon

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