Income-tax-

----Reference---Charitable purpose---Trust---Finding that assessee was a charitable trust--No question of law arises- Trust whether hit by provisions o f S.13, Indian Income Tax Act, 1961---Question of law.

Held, (i) that the finding that the assessee was a charitable trust was a finding of fact and that no question of law arose from it;

(ii) that the question whether the provisions of section 13 of the Income Tax Act, 1961, were applicable to the assessee law.

JUDGMENT

B.P. JEEVAN REDDY, C,J----A common question arises in these three income-tax applications.

By these applications under section 256(2) of the Income-tax Act, 1961, the revenue has requested this Court to direct the Tribunal to refer the following three questions for the opinion of this Court:

"(1) Whether, in law and on facts of the case, the Income-tax Appellate Tribunal, Allahabad, was justified in holding that the Kamla Town Trust is a trust for charitable purposes while the activities of the trust are contrary to the provisions of section 2(15) of the Income-tax Act, 1961, and resulted in benefit and profit to the J.K. Organisation?

(2) Whether, in law and on facts, the Income-tax Appellate Tribunal, Allahabad, was justified in taking a decision contrary to the ratio of the decision of the Hon'ble Supreme Court in the case of Indian Sugar Mills Association (1974) 97ITR 486?

(3) Whether, in law and on facts of the case, the Income-tax Appellate Tribunal was correct in holding that the assessee-trust was not hit by the provisions of sections 13(1)(c) and 13(2)(b) read with sections 13(2) and 13(3) of the Income-tax Act 1961?"

After hearing counsel for both the parties, we are of the opinion that question No.3 alone ought to be referred. So far as questions Nos.1 and 2 are concerned, we do not think that they are questions of law arising from the order the tribunal which ought to be referred. In view of the facts and circumstances of the case, the Tribunal's opinion on these questions appears to be unobjectionable.

Accordingly, these Income-tax applications are allowed in part. Question No.3 shall be stated for the opinion of this Court.

M.B.A./1574/T Applications allowed partly.