{"id":164884,"date":"1993-01-29T00:00:00","date_gmt":"1993-01-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-sahitya-trust-on-29-january-1993"},"modified":"2016-04-13T04:53:22","modified_gmt":"2016-04-12T23:23:22","slug":"commissioner-of-income-tax-vs-sahitya-trust-on-29-january-1993","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-sahitya-trust-on-29-january-1993","title":{"rendered":"Commissioner Of Income-Tax vs Sahitya Trust on 29 January, 1993"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Commissioner Of Income-Tax vs Sahitya Trust on 29 January, 1993<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1993 203 ITR 349 Guj<\/div>\n<div class=\"doc_author\">Author: G Nanavati.<\/div>\n<div class=\"doc_bench\">Bench: G Nanavati, S Soni<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>G.T. Nanavati. J. <\/p>\n<p> 1. The Income-tax Appellate Tribunal has referred the following questions to this court under section 256(1) of the Income-tax Act, 1961 :\n<\/p>\n<p>&#8220;(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 trust in certain concerns in which the persons referred to in section 13(3) have substantial interest and because such funds were not invested in purchasing the shares which were donated to the trust ?\n<\/p>\n<p>(2) Whether the burden lay on the Revenue to show that the provisions of section 13(1)(c) of the Income-tax Act applied in the case of the assessee in view of Explanation 3 to that section ?\n<\/p>\n<p>(3) Whether the Income-tax Appellate Tribunal was right in law in holding that the case of the assessee was not hit by the provisions of section 13(2)(h) of the Income-tax Act ?&#8221;\n<\/p>\n<p> 2. The point that arises for consideration in this reference is concluded by a decision of this court in CIT v. Insaniyat Trust [1988] 173 ITR 248, wherein it has been held that, where a charitable trust receives as donation shares 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 disposed of accordingly with no order as to costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Commissioner Of Income-Tax vs Sahitya Trust on 29 January, 1993 Equivalent citations: 1993 203 ITR 349 Guj Author: G Nanavati. Bench: G Nanavati, S Soni JUDGMENT G.T. Nanavati. J. 1. The Income-tax Appellate Tribunal has referred the following questions to this court under section 256(1) of the Income-tax Act, 1961 : &#8220;(1) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-164884","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Income-Tax vs Sahitya Trust on 29 January, 1993 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-sahitya-trust-on-29-january-1993\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner Of Income-Tax vs Sahitya Trust on 29 January, 1993 - Free Judgements of Supreme Court &amp; 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