JUDGMENT

S. Muralidhar, J.

1. These two cases are references made to this Court by the Income Tax Appellate Tribunal (`Tribunal') Delhi Bench "E", New Delhi under Section 256 (1) of the Income Tax Act 1961 (`Act'). The questions referred for two Assessment Years are more or less similar. Relevant to the Assessment Year 1976-77, the following questions of law have been referred for our opinion in ITA No. 2601/Del/1979:

1. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that 5,06,076 shares being bonus shares of M/s. Mohan Meakin Breweries Ltd ('MMBL'). Received by the assessee did not represent funds of the trust invested in the said concern for purposes of section 13(4) of the Act?

2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the prohibited category of persons mentioned in Section 13(3) did not have substantial interest in MMBL in which the funds of the assessee were invested and, therefore, the provisions of section 13(2)(h) were not applicable?

3. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the trust was