1993 (1) TMI 25

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..... Tribunal has referred the following questions to this court under section 256(1) of the Income-tax Act, 1961 : "(1) Whether the Income-tax Appellate Tribunal was right in law in holding that the condition precedent in section 13(2)(h) of the Income-tax Act, 1961, is not fulfilled in this case because that condition requires a positive act on the part of the trustees to invest the funds of the tru .....

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..... s in a company in which the persons mentioned in section 13(3) have substantial interest, the trust cannot be said to have invested its funds in purchasing the shares in question. In such cases, section 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 disp .....

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