Whether provisions of section 13(2)(h), providing for forfeiture of exemption, apply with reference to shares in company initially settled on trust or donated to it subsequently

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....ettled on trust or donated to it subsequently 1. Reference is invited to paragraph 21 of the Boards Circular No. 45, dated 2-9-1970 which explains the scope and ambit of section 13 as substituted by the Finance Act, 1970. 2. A question has been raised whether the provision in section 13(2)(h), which provides for the forfeiture of exemption from tax in a case where the trust funds are invested in....

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....in such a concern before the beginning of the relevant previous year, continue to remain so invested for any period during that previous year. It, therefore, follows that a trust will forfeit exemption from tax if it continues to hold, after December 31, 1970; shares in a company in which its author, or other connected persons, are substantially interested, regardless of whether the shares form pa....