M/s. Tamil Nadu Urban Development Fund, CHENNAI V. ITO, CHENNAI

ITA 2316/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7468 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 30-01-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 09-08-2016
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Keywords: Maximum Marginal Rate; Revocable transfer
• Section: 6

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . . . , ! '#.. $ %!& , ( )* BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER ! ./ ITA NOS.2316 & 2317/MDS/2016 + ,+ /ASSESSMENT YEAR: 2008-09 & 2009-10 M/S.TAMIL NADU URBAN DEVELOPMENT FUND, NO.19 T P SCHEME ROAD, RAJA STREET EXTENSION, RAJA ANNAMALAIPURAM, CHENNAI-600 028. VS. THE ITO, BUSINESS WARD- II(4), CHENNAI, NEW JURISDICTION, ITO NON- CORPORATE WARD-2(5), CHENNAI-34. [PAN: AAATT 0859 N ] ( -. /APPELLANT) ( /0-. /RESPONDENT) -. 1 2 / APPELLANT BY : SMT. PUSHYA SITARAMAN, SR.ADV. FOR J.SREE VIDYA, ADV. /0-. 1 2 /RESPONDENT BY : MR.N.MADHAVAN, JCIT $ 1 3( /DATE OF HEARING : 30.01.2017 45, 1 3( /DATE OF PRONOUNCEMENT : 23.03.2017 / O R D E R PER D.S.SUNDER SINGH , ACCOUNTANT MEMBER : THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST AN ORDER DATED 30.03.2016 OF COMMISSIONER OF INCOME TAX (APPEALS)- 2, CHENNAI, IN ITA NO.31/CIT(A)-2/2013-14 FOR THE AY 2008-09 AND ORDER DATED 30.03.2016 ITA NOS.2316 & 2317/MDS/2016 :- 2 -: OF COMMISSIONER OF INCOME TAX (APPEALS)-2, CHENNAI, IN ITA NO.174/CIT(A)-2/2013-14 FOR THE AY 2009-10. 2.0 ALL THE GROUNDS OF APPEAL ARE RELATED TO EXE MPTION OF INCOME U/S.61 AND 161 OF INCOME TAX ACT IN THE HANDS OF TH E ASSESSEE. THE ISSUES RAISED IN THESE APPEALS FOR THE AYS 2008-09 & 2009-10 AND THE GROUNDS OF APPEAL FOR BOTH THE ASSESSMENT YEARS ARE COMMON. HENCE BOTH THE APPEALS ARE HEARD TOGETHER AND DISPOSED OFF IN COMMON ORDER FOR THE SAKE OF CONVENIENCE. 3.0 THE ASSESSEE IS A TRUST SET UP BY GOVERNMENT OF TAMILNADU AND CONSTITUTED A TRUST DEED DATED 29/11/2006 AND FILED ITS RETURN OF INCOME UNDER THE STATUS OF AOP (TRUST) ADMITTING NIL INCOM E ON 22.09.2008. THE AO TAKEN UP THE CASE FOR SCRUTINY AND COMPLETED THE ASSESSMENT U/S.143(3) ON TOTAL INCOME OF RS.18,50,37,858/-. T HE ASSESSEE IS HAVING EXCESS OF INCOME OVER EXPENDITURE AMOUNTING TO RS.1 8,34,07,282/- AND THE ASSESSEE HAS CLAIMED DEDUCTION OF PROVISIONS RE LATING TO NON PERFORMING ASSETS WHICH WAS DISALLOWED BY THE AO AN D COMPUTED THE INCOME AT RS.185037858/-. DURING THE ASSESSMENT PRO CEEDINGS THE ASSESSEE CONTENDED THAT THE PROVISIONS OF SECTION 6 1 WAS APPLICABLE TO THE ASSESSEE FOR THE REASON THAT THE TRUST IS REVOCABLE TRUST AS THE UNIT CAPITAL CONTRIBUTIONS MADE BY THE THREE FINANCIAL INSTITUTI ONS CAN CALLED BACK WITH ACCRETION AT ANY TIME AFTER THREE YEARS AND SUCH RE VOCABLE TRANSFER OF UNIT CONTRIBUTION HAS TO BE TAXED ONLY IN THE HANDS OF T RANSFERORS. THE ITA NOS.2316 & 2317/MDS/2016 :- 3 -: ASSESSING OFFICER WITHOUT ACCEPTING THE CONTENTION OF THE ASSESSEE BROUGHT THE ENTIRE INCOME AT MAXIMUM MARGINAL RATE IN THE H ANDS OF THE ASSESSEE. 4.0 AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE WEN T ON APPEAL BEFORE THE LD.CIT(A) BUT NOT SUCCEEDED IN APPEAL. THEREFORE, THE ASSESSEE IS ON APPEAL BEFORE US. 5.0 APPEARING FOR THE ASSESSEE, MRS.PUSHYA SITARAMAN, SR. ADVOCATE SUBMITTED THAT THE ASSESSEE IS A TRUST SET UP BY GO VERNMENT OF TAMILNADU CONSTITUTED UNDER TRUST DEED ON 29.11.1996. THE MA IN OBJECTIVE OF THE TRUST IS PROVIDING INFRASTRUCTURE FACILITIES TO THE STATE THROUGH LOCAL BODIES. THE INITIAL CONTRIBUTION OF GOVERNMENT OF TAMIL NAD U IS ONLY RS.5,000/-, IT HAS INVITED ICICI, IL&FS, HDFC AS CONTRIBUTORS TO T HE TRUST WITH THE CONDITION THAT AFTER THREE YEARS IF THEY DESIRE, TH EY CAN TAKE BACK THEIR CONTRIBUTIONS AND SO THAT THEY CAN CONTRIBUTE THEIR SHARE AS WELL AS THEIR EXPERTISE ALSO IN DEVELOPMENT OF INFRASTRUCTURE IN THE STATE THROUGH EXTENDING FINANCIAL ASSISTANCE. THE OBJECTIVE WAS TOTALLY IN PUBLIC INTEREST AND FOR THE DEVELOPMENT OF THE STATE. THOUGH, THEY COULD HAVE BEEN A SURPLUS IN THE TRANSACTIONS, THE MOTIVE WAS TO ENHA NCE THE WELFARE OF THE PUBLIC AND NOT THE PROFIT. THE ASSESSEE WAS CONSTI TUTED FOR THE PURPOSE OF FINANCIAL INFRASTRUCTURE PROJECTS WHICH INCLUDE WAT ER SUPPLY, SOLID WASTE MANAGEMENT, SANITATION, ROADS, TRANSPORTATION SYSTE MS, SITES AND SERVICES, AREA DEVELOPMENT AND OTHER REMUNERATIVE A ND NON- REMUNERATIVE URBAN INFRASTRUCTURE CONTRIBUTING TO T HE IMPROVEMENT OF THE ITA NOS.2316 & 2317/MDS/2016 :- 4 -: LIVING STANDARDS OF THE URBAN POPULATIONS EXCLUDING POWER & TELECOM AND PLAYS AN ADVISORY ROLE AS WELL. AS PER THE CONTRIB UTORS AGREEMENT ENTERED INTO WITH THE CONTRIBUTORS I.E. ICICI, HDFC & IL&FS AND THE TAMIL NADU URBAN INFRASTRUCTURE FINANCIAL SERVICES PVT. LTD., A PUBLIC LIMITED COMPANY WILL FUNCTION AS A FUND MANAGER TO MANAGE T HE TRUST FUND. THE CONTRIBUTION AGREEMENT SET OUT THE TERMS AND CONDIT IONS AGREED WITH REGARD TO CONTRIBUTIONS AND ALLIED MATTERS UNDER TH E AGREEMENT, THE NET INCOME RECEIVED BY THE TRUST EXCEPT THE INITIAL SET TLEMENTS WILL BE DISTRIBUTED TO THE CONTRIBUTORS IN PROPORTIONATE TO THEIR RESPECTIVE FINANCIAL ASSISTANCES IN RESPECT OF PROJECTS OF PUBLIC IMPORT ANCE. ON THE ABOVE SET OF FACTS, THE LD.AR OF THE ASSESSEE CLAIMED THAT TH E SURPLUS DERIVED BY THE ASSESSEE DOES NOT CONSTITUTE INCOME IN ITS HANDS AN D THE PROVISIONS SEC.61 OF INCOME TAX ACT WOULD BE APPLICABLE TO THE SURPLUS DERIVED. THE ASSESSEE ALSO SUBMITTED THAT ALL THE MEMBERS ARE ID ENTIFIABLE AND ASSESSED TO TAX. THE INCOME RELATED TO THE AY 2008 -09 RECEIVED BY THE BENEFICIARIES WAS OFFERED TO TAX IN THE RESPECTIVE HANDS AND ASSESSED BY THE INCOME TAX DEPARTMENT. THEREFORE, HE ARGUED TH AT TAXING THE SAME INCOME AGAIN IN THE HANDS OF THE ASSESSEE WOULD AMO UNT TO DOUBLE TAXATION OF THE SAME. THE LD.AR OF THE ASSESSEE AL SO RELIED ON THE FOLLOWING DECISIONS: 1. DCIT V. INDIA ADVANTAGE FUND-VII (2014) 036 ITR (TR IB) 0304. 2. ITO V. INDIA ADVANTAGE FUND-I (2015) 43 CCH 0459 BAN GTRIB. 3. JYOTENDRASINGHJI V. S.I.TRIPATHI & ORS. (1993) 201 I TR 0611 (SC). 4. CIT V. T.A.V.TRUST (2003) 264 ITR 52 (KER). ITA NOS.2316 & 2317/MDS/2016 :- 5 -: 6.0 THE LD.AR TAKEN US TO THE TRUST DEED PAGE NO.5, 23 , 22, 43 AND 78 FOR REFERRING THE MEANING OF PROJECTS, INVESTMENTS, REVOCABLE TRUST, DISTRIBUTION OF PROFITS AND SUPPLEMENTARY DEED FOR GRANTS OF GOVERNMENT OF TAMIL NADU AND EXPLAINED THAT THE TRUST IS NOT C ARRYING ON ANY BUSINESS ACTIVITY, THE SHARES OF THE BENEFICIARIES ARE DETER MINED AND HENCE THE TRUST IS A REVOCABLE TRUST. THE LD.AR ARGUED THAT SEC.61 IS APPLICABLE IN THE ASSESSEES CASE AND SEC.161(1A) HAS NO APPLICA TION IN THE ASSESSEES CASE. ON THE OTHER HAND, THE LD.DR RELIED ON THE L OWER AUTHORITIES ORDERS. 7.0 WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL PLACED ON RECORD AND WE HAVE ALSO GONE THROUGH THE PROVISIONS OF SEC.61 OF INCOME TAX ACT AND THE VARIOUS CLAUSES OF TRUST DEED AND T HE CONTRIBUTORS AGREEMENT REFERRED BY THE LD.AR. FOR READY REFERE NCE, WE REPRODUCE SEC.61 OF INCOME TAX ACT HEREUNDER: REVOCABLE TRANSFER OF ASSETS. 61. ALL INCOME ARISING TO ANY PERSON BY VIRTUE OF A REVOCABLE TRANSFER 86 OF ASSETS SHALL BE CHARGEABLE TO INCOME-TAX AS THE INCOME OF THE TRANS FEROR AND SHALL BE INCLUDED IN HIS TOTAL INCOME . FROM THE PLAIN READING OF THE SEC.61 IT IS CLEAR T HAT ALL THE INCOME ARISING TO ANY PERSON SHALL BE CHARGEABLE TO TAX AS INCOME IN THE HANDS OF THE TRANSFEROR AND SHALL BE INCLUDED IN HIS TOTAL I NCOME. SEC.62 OF IT ACT DEALS WITH THE IRREVOCABLE FOR A SPECIFIED PERIOD AND SEC.63 DEALS WITH THE TRANSFER DEFINITION OF TRANSFER AND REVOCABLE TRANS FER WHICH IS EXTRACTED AS UNDER: ITA NOS.2316 & 2317/MDS/2016 :- 6 -: TRANSFER AND REVOCABLE TRANSFER DEFINED. 8 7 63. FOR THE PURPOSES OF SECTIONS 60 , 61 AND 62 AND OF THIS SECTION, (A) A TRANSFER 88 SHALL BE DEEMED TO BE REVOCABLE IF (I) IT CONTAINS ANY PROVISION FOR THE RE-TRANSFER DIREC TLY OR INDIRECTLY 89 OF THE WHOLE OR ANY PART OF THE INCOME OR ASSETS TO THE TRANSFEROR, OR (II) IT, IN ANY WAY, GIVES THE TRANSFEROR A RIGHT TO RE -ASSUME POWER DIRECTLY OR INDIRECTLY OVER THE WHOLE OR ANY PART OF THE INCOME OR ASSETS ; ( B ) TRANSFER 88 INCLUDES ANY SETTLEMENT, TRUST, COVENANT, AGREEMEN T OR ARRANGEMENT 88 8.0 THE LD.AR OF THE ASSESSEE REFERRING TO THE PAPER B OOK PAGE NO.23 CLAUSE NO.6.03 TO 6.06 OF CONTRIBUTION AGREEMENT BE TWEEN THE TAMILNADU URBAN INFRASTRUCTURE LTD AND THE TAMILNADU URBAN IN FRASTRUCTURE FINANCIAL SERVICES LTD (FUND MANAGER) DATED 18/11/1996 ARGUED THAT THE CONTRIBUTORS ARE FREE TO CANCEL THE UNITS HELD BY T HEM. THE CLAUSES OF CONTRIBUTORS AGREEMENT ARE EXTRACTED AS UNDER FOR READY REFERENCE: 6.03 AT THE END OF (3) THREE YEARS FROM THE DATE HE REOF, EACH CONTRIBUTOR IS ENTITLED TO CALL UPON THE TRUSTEE TO CANCEL ALL OR PART OF THE UNITS HELD BY IT AND RETURN THE NOMINAL VALUE THEREOF OF SUCH CANCELLED UNITS. THE PRO-RATA SHARE OF THAT CONTRIBUTOR IN THE ACCUMULATED UNDISTRIBUTED NET INCOME OR NET LOSS, IF ANY, OF TH E TRUST FOR ALL THE ACCRUAL PERIODS AND PART PERIODS, IF ANY, WILL BE PAID TO IT OR DEDUCTE D FROM THE PAYMENT AS THE CASE MAY BE, ON CANCELLATION OF UNITS. 6.04 ON BEING CALLED UPON TO CANCEL THE UNITS BY ANY OF THE CONTRIBUTORS, TRUSTEE SHALL INSTRUCT THE FUND MANAGER TO SO CANCEL THE UNITS AN D REFUND THE NOMINAL VALUE THEREOF AS PROVIDED HEREIN. 6.05 AT THE END OF THE TRUST PERIOD ALL THE UN-CANC ELLED UNITS WILL BE CANCELLED AND THE FACE VALUE THEREOF TOGETHER WITH THE ACCUMULATED, SHARE OF UNDISTRIBUTED NET INCOME OR AFTER DEDUCTING THE NET LOSS OF THE TRUST FUND WILL BE PA ID TO THE RESPECTIVE CONTRIBUTORS. IF THE TRUST IS EXTINGUISHED EVEN BEFORE THE END OF THE TRUST PERIOD, ALL UNITE SHALL BE CANCELLED AND AMOUNT PAID AS ABOVE. 6.06 ANY CONTRIBUTOR WISHING TO CALL UPON THE TRUST EE TO CANCEL ITS UNITS, AS ABOVE, SHALL GIVE A WRITTEN NOTICE AND SURRENDER THE UNITS HELD BY IT. THE TRUSTEE SHALL ENDEAVOUR TO CANCEL THE UNITE AS SOON AS POSSIBLE, BUT NOT LATER THAN 6 (SIX) MONTHS OF RECEIPT OF NOTICE. FROM THE CLAUSES OF 6.03 TO 6.04 REFERRED ABOVE, I T IS EVIDENT THAT AFTER THREE YEARS THE CONTRIBUTORS ARE FREE TO CALL UPON THE TRUSTEES TO CANCEL ANY UNIT HELD BY THEM AND RETURN WHATEVER RE MAINS UN-CANCELLED ITA NOS.2316 & 2317/MDS/2016 :- 7 -: WILL BE CANCELLED AT THE TRUST PERIOD AND THE MONEY IS RETURNED TO THE CONTRIBUTORS. 9.0 THE LD.AR ALSO TAKEN OUR ATTENTION TO THE PAGE NO.43 OF PAPER BOOK WHEREIN THE OBJECTS OF THE TRUST ARE DEFINED AS UND ER: I. TO GIVE FINANCIAL ASSISTANCE TO URBAN LOCAL BODIES, STATUTORY BOARDS, PUBLIC SECTOR UNDERTAKINGS AND PRIVATE INVESTORS, FOR SETTING UP INFRASTRUCTURE PROJECTS IN THE STATE OF TAMIL NADU. THE TRUST MAY ALSO PROVIDE SUB-ORDI NATE LOAN OR TAKE EQUITY POSITION IN THE INFRASTRUCTURE PROJECTS SPONSORED BY PRIVATE IN VESTORS ON A COMMERCIAL BASIS WHEN THE INFRASTRUCTURE PROJECTS ARE CONSIDERED STRATEGI CALLY IMPORTANT. THE ULTIMATE GOAL OF THE TRUST IS TO BECOME FINANCIALLY SELF SUSTAINABLE AND TO MOBILIZE SOURCES TO FINANCE URBAN INFRASTRUCTURE DEVELOPMENT. THE TRUST WILL O NLY INVEST IN INFRASTRUCTURE PROJECTS THAT AT THE TIME OF THE INVESTMENT COMPLY WITH ALL RELEVANT STATE AND CENTRAL GOVERNMENT LEGISLATION REGARDING ENVIRONMENTAL AND SOCIAL PROTECTION. II. TO BORROW OR RAISE MONEYS OR LOANS OR RECEIVE GRANT S OR ACCEPT CONTRIBUTIONS FOR THE ABOVE PURPOSE IN SUCH MANNER AND ON SUCH TERMS, CON DITIONS AND SECURITIES AS THE TRUSTEE IN THEIR DISCRETION DEEM FIT FROM TIME TO T IME. III. TO GUARANTEE THE PERFORMANCE OF ANY CONTRACT OR OBL IGATIONS AND THE PAYMENT OR MONEY OR DIVIDENDS AND INTEREST ON ANY STOCKS, SHAR ES, OR SECURITIES OF ANY COMPANY, CORPORATION, FIRM OR PERSON IN ANY CASE IN WHICH SU CH GUARANTEE MAY BE CONSIDERED DIRECTLY OR INDIRECTLY TO FURTHER THE MAIN OBJECTS OF THE TRUST. IV. TO SUBSCRIBE FOR, UNDERWRITE, ACQUIRE, HOLD AND DIS POSE OF SHARES, STOCKS, DEBENTURES, DEBENTURE STOCKS, BONDS, MORTGAGES, OBLIGATIONS, SE CURITIES OF ANY KIND ISSUED OR GUARANTEED BY ANY COMPANY (BODY CORPORATE OR UNDERT AKING) OF WHATEVER NATURE AND INDUSTRY, GOVERNMENT, TRUST, MUNICIPAL, LOCAL AUTHO RITY OR BODY OF WHATEVER NATURE AS MAY BE CONDUCIVE TO THE OBJECTS OF THE TRUST. V. TO INVEST ANY MONEY OF THE TRUST NO IMMEDIATELY REQ UIRED, IN ANY INVESTMENTS AS MAY BE THOUGHT PROPER AND AS MAY BE NECESSARY. VI. TO DO ALL OTHER THINGS NECESSARY AND CONDUCIVE TO T HE ATTAINMENT OF ALL THESE OBJECTS. THE OBJECTS OF THE TRUST CLEARLY INDICATE THE PUBL IC UTILITY AND IMPROVEMENT OF INFRASTRUCTURE FACILITIES FOR THE BE TTERMENT OF THE URBAN AREA AND NOT CARRIED ON FOR THE PURPOSE OF BUSINESS . 10.0 THE ASSESSEE ALSO INVITED OUR ATTENTION TO PAGE NO.6 OF THE PAPER BOOK FOR THE DEFINITION OF INVESTMENTS WHICH IS R E-PRODUCED HEREUNDER: ITA NOS.2316 & 2317/MDS/2016 :- 8 -: INVESTMENTS MEANS MONIES LENT/TO BE LENT BY THE T RUST ONLY FOR INFRASTRUCTURE PROJECTS AND INCLUDES MONIES PLACED BY THE TRUST IN INSTRUME NTS SUCH AS GOVERNMENT PROMISSORY NOTES OR OTHER GOVERNMENT SECURITY AN DEFINED IN SE C.2 OF THE PUBLIC DEBT ACT, 1944, STOCK OR SHARES IN ANY BANKING COMPANY OR OTHER PUBLIC CO MPANY, OR STOCKS, FUNDS, SHARES DEBENTURE, DEBENTURE STOCK, COMMERCIAL PAPERS, FINA NCIAL PAPERS, SHORT TERM OR LONG - TERM CORPORATE DEPOSITS, SECURITIZED DEBT, MORTGAGE, BON DS, OBLIGATIONS AND SECURITIES OF ANY DESCRIPTION WHATSOEVER. FROM THE ABOVE EXTRACTS OF THE PAPER BOOK, WHICH A RE EXTRACTED FROM THE TRUST DEED AND THE CONTRIBUTORS AGREEMENT , IT IS EVIDENT THAT THE ASSESSEE IS NOT CARRYING ON ANY BUSINESS WITH COMME RCIAL MOTIVE. THE BENEFICIARIES OF THE TRUST ARE IDENTIFIABLE AND THE SHARES ARE DETERMINED BY CONTRIBUTORS AGREEMENT AND THE CONTRIBUTORS ARE FR EE TO CALL UPON THE TRUST TO CANCEL ANY UNITS HELD BY THEM AND RETURN T HE VALUE. THEREFORE, THE TRUST IS REVOCABLE TRUST AND SQUARELY COVERED B Y SECTION 61 OF INCOME TAX ACT. ACCORDINGLY, WE HOLD THAT TRUST IS A REVO CABLE TRUST AND THE INCOME DERIVED BY THE ASSESSEE REQUIRED TO BE TAXED IN THE HANDS OF THE BENEFICIARIES IN ACCORDANCE WITH THE PROVISIONS OF SECTION 61 AND 161(1) OF INCOME TAX ACT. THIS VIEW IS SUPPORTED BY THE DECI SION OF THE CO-ORDINATE BENCH IN THE CASE OF DCIT V. INDIA ADVANTAGE FUNDV II CITED SUPRA RELIED UPON BY THE ASSESSEE. THE ASSESSEE ALSO FILED EVID ENCE REGARDING THE ADMISSION OF INCOME BY THE BENEFICIARIES IN PAGE NO S.81 TO 83 FROM THE CONTRIBUTORS ICICI BANK, IL&FS AND THE HDFC. THERE FORE, THE APPEALS OF THE ASSESSEE FOR THE A.YS 2008-09 AND 2009-10 ARE A LLOWED AND THE ORDERS OF THE LOWER AUTHORITIES ARE SET-ASIDE. ITA NOS.2316 & 2317/MDS/2016 :- 9 -: 11.0 IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD MARCH, 2017, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( '# . . $ %!& ) (D.S.SUNDER SINGH) ( /ACCOUNTANT MEMBER /CHENNAI, 6! /DATED: 23 RD MARCH, 2017. TLN 1 /3%7 87,3 /COPY TO: 1. -. /APPELLANT 4. $ 93 /CIT 2. /0-. /RESPONDENT 5. 7 : /3 /DR 3. $ 93 ( ) /CIT(A) 6. #+ = /GF