Dismissing the appeal of the revenue the Court held that as a result of a dispute which arose amongst the family members of Dr.Bhai Mohan Singh , the assessee was restrained from converting the shares held in DGHPL to other permissible form of investment before the time limit prescribed in clause (iia) of proviso to S.13(1)( d) of the Act. The conversion could ultimately take place in 2012 after the restraint was lifted . There was no violation of provisions of S. 11(5) read with S. 13(1)(d) for holding shares for more than prescribed period. Exemption cannot be denied .( AY.2007 -08)
CIT v. Bhai Mohan Singh Foundation ( 2018) 95 taxmann.com 332 ( Delhi) (HC) Editorial: SLP of revenue is dismissed ;CIT v. Bhai Mohan Singh Foundation. (2018) 257 Taxman 90 (SC)
S. 13 : Denial of exemption-Trust or institution-Investment restrictions -Trust was restrained from converting shares held by it in private limited company to other forms of permissible investment by virtue of restraint order of High Court in case of settlors from whom it had received shares, it could not be held liable for violation of provisions of S. 11(5) read with S. 13(1)(d) for holding shares for more than prescribed period- Exemption cannot be denied .[ S.11(5) ,113(1)(d) ]