Denial of exemption u/s 11 was challenged due to alleged...

Denial of exemption u/s 11 was challenged due to alleged violations of Sections 13(1)(d), 13(2)(h), and 13(1)(c) of the Income Tax Act. The key points are: Section 13(1)(d) was held inapplicable as the assessee's holdings mainly consisted of bonus shares and acquisitions before 1983, covered by an exception. Section 13(2)(h) was inapplicable as no trustee held more than 20% voting power in the company. Section 13(1)(c) was wrongly invoked as payments received by trustees were for past services, not application of trust income. The assessee was not engaged in business u/s 2(15) as it earned only dividends and donations, not business income. The right to nominate directors was to protect the trust's interests. Exemption u/s 11 was upheld, and the appeal was allowed.