COMMISSIONER OF INCOME TAX Vs. SAHITYA TRUST

JUDGEMENT

(1.) THE Tribunal has referred the following questions to this Court under S. 256(1) of the IT Act :

(2.) THE point that arises for consideration in this reference is concluded by a decision of this Court in CIT vs. Insaniyat Trust (1988) 71 CTR (Guj) 145 : (1988) 173 ITR 248 (Guj), wherein it has been held that where a charitable trust receives as donation shares in a company in which the persons mentioned in S. 13(3) had substantial interest, the trust cannot be said to have invested its funds in purchasing the shares in question. In such cases, S. 13(2)(h) will have no application. Following that decision, we answer questions Nos. 1, 2 and 3 in the affirmative, that is against the Revenue and in favour of the assessee. The Reference is disposed of accordingly with no order as to costs.