https://www.taxtmi.com/caselaws?id=24893 The High Court ruled in favor of the assessee-trust and against the Revenue. It held that the condition precedent in section 13(2)(h) of the Income-tax Act was not fulfilled as the shares were donated to the trust and not purchased by it. The Court clarified that the term "funds" in section 13(2)(h) refers to actual money capable of investment by the trust itself. Since the trust did not invest its funds in purchasing the shares, the provisions of section 13(2)(h) did not apply. The Court found that the legislative intent was to discourage investment in concerns with specified persons' substantial interest. en-us Mon, 18 Apr 1988 00:00:00 +0530 Sat, 23 Jan 2010 10:54:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24893 The High Court ruled in favor of the assessee-trust and against the Revenue. It held that the condition precedent in section 13(2)(h) of the Income-tax Act was not fulfilled as the shares were donated to the trust and not purchased by it. The Court clarified that the term "funds" in section 13(2)(h) refers to actual money capable of investment by the trust itself. Since the trust did not invest its funds in purchasing the shares, the provisions of section 13(2)(h) did not apply. The Court found that the legislative intent was to discourage investment in concerns with specified persons' substantial interest. Case-Laws Income Tax Mon, 18 Apr 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24893