Income Tax Act, 2025
Section 4: Subs. by s. 7, ibid., for clause (d) (w.e.f. 11983).
4. Subs. by s. 7, ibid., for clause (d) (w.e.f. 11983).
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1[(iii) any shares in a company, other than—
(A) shares in a public sector company;
(B) shares prescribed as a form or mode of investment under clause (xii) of
sub-section (5) of section 11,
are held by the trust or institution after the 30th day of November, 1983:]
Provided that nothing in this clause shall apply in relation to—
(i) any assets held by the trust or institution where such assets form part of the corpus of the trust
or institution as on the 1st day of June, 1973 2***;
3[(ia) any accretion to the shares, forming part of the corpus mentioned in clause (i), by way of
bonus shares allotted to the trust or institution;]
(ii) any assets (being debentures issued by, or on behalf of, any company or corporation) acquired
by the trust or institution before the 1st day of March, 1983;
4[(iia) any asset, not being an investment or deposit in any of the forms or modes specified in
sub-section (5) of section 11, where such asset is not held by the trust or institution, otherwise than in
any of the forms or modes specified in sub-section (5) of section 11, after the expiry of one year from
the end of the previous year in which such asset is acquired or the 31st day of March, 5[1993],
whichever is later;]
(iii) any funds representing the profits and gains of business, being profits and gains of any
previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any
subsequent assessment year.
Explanation.—Where the trust or institution has any other income in addition to profits and gains
of business, the provisions of clause (iii) of this proviso shall not apply unless the trust or institution
maintains separate books of account in respect of such business.]
6[Explanation.—For the purposes of sub-clause (ii) of clause (c), in determining whether any part of
the income or any property of any trust or institution is during the previous year used or applied, directly
or indirectly, for the benefit of any person referred to in sub-section (3), insofar as such use or application
relates to any period before the 1st day of July, 1972, no regard shall be had to the amendments made to
this section by section 7 [other than sub-clause (ii) of clause (a) thereof] of the Finance Act, 1972.]
(2) Without prejudice to the generality of the 7[provisions of clause (c) and clause (d)] of
sub-section (1), the income or the property of the trust or institution or any part of such income or
property shall, for the purposes of that clause, be deemed to have been used or applied for the benefit of a
person referred to in sub-section (3),—
(a) if any part of the income or property of the trust or institution is, or continues to be, lent to any
person referred to in sub-section (3) for any period during the previous year without either adequate
security or adequate interest or both;
(w.e.f. 11983).
133
1[
any shares in a company, other than—
shares in a public sector company;
shares prescribed as a form or mode of investment under clause
of
sub-section
of section 11,
are held by the trust or institution after the 30th day of November, 1983:]
Provided that nothing in this clause shall apply in relation to—
any assets held by the trust or institution where such assets form part of the corpus of the trust
or institution as on the 1st day of June, 1973 2***;
3[
any accretion to the shares, forming part of the corpus mentioned in clause
any assets (being debentures issued by, or on behalf of, any company or corporation) acquired
by the trust or institution before the 1st day of March, 1983;
4[
any asset, not being an investment or deposit in any of the forms or modes specified in
sub-section
of section 11, where such asset is not held by the trust or institution, otherwise than in
any of the forms or modes specified in sub-section
of section 11, after the expiry of one year from
the end of the previous year in which such asset is acquired or the 31st day of March, 5[1993],
whichever is later;]
any funds representing the profits and gains of business, being profits and gains of any
previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any
subsequent assessment year.
Explanation.—Where the trust or institution has any other income in addition to profits and gains
of business, the provisions of clause
of this proviso shall not apply unless the trust or institution
maintains separate books of account in respect of such business.]
6[Explanation.—For the purposes of sub-clause
of clause
of clause
thereof] of the Finance Act, 1972.]
Without prejudice to the generality of the 7[provisions of clause
and clause
if any part of the income or property of the trust or institution is, or continues to be, lent to any
person referred to in sub-section
for any period during the previous year without either adequate
security or adequate interest or both;