KANTAWALA, J. - (1.)AT the instance of the revenue the following question is referred to us for our determination :
'Whether, on the facts and in the circumstances of the case, the claim of the assessee for exemption under section 4(3)(i) of the Indian Income -tax Act, 1922, for the assessment years 1958 -59 to 1961 -62 and under section 11(1) of the Income -tax Act, 1961, for the assessment years 1962 -63 and 1963 -64 with reference to the income from a business carried on by the trust in which certain processes held under trust are exploited is proper ?'

(2.)THE relevant previous years for the assessment years in question are calendar years 1957, 1958, 1959, 1960, 1961 and 1962. M. A. Chaudary had obtained certain patents in respects of certain inventions made by him. He also held 45 shares of Rs. 10 each in M/s. Millers Ltd. On July 12, 1955, M. A. Chaudary created a trust in respect of the shares, patents, inventions and designs and other properties referred to therein for the objects therein specified. The relevant part of the trust deed provided as under :
'1. That the trustees shall hold the said shares, patents, inventions and designs and all the patents, inventions and designs that may hereafter be donated to the trustees and all other donations, contributions, additions, profits, royalties, income, dividend, interest, accumulations and accretions thereon and/or any convention thereof and/or any investment or investments in which the said donations, contributions, additions, accumulations or accretions may from time to time be invested, hereinafter called the 'Trust Assets' upon the following trusts and subject to the following powers, agreements, declarations, terms and conditions, namely : -'

In sub -clause (2) thereof several objects were set out and it is common ground that they are of a charitable nature. A few days after the execution of the trust, Chaudary donated on August 22, 1955, the following inventions to the trust for their exploitation :

1. A process for manufacturing sizing softener (olein). 2. A process for manufacturing sizing antiseptic (microlin).

(3.)THE process in item 2 above for manufacturing, sizing antiseptic was being utilised in a manufacturing business carried on by the trust. The income derived therefrom is being applied for the charitable objects set out in the indenture of trust. There was no controversy between the assessee and the taxing authorities that the invention for manufacturing sizing antiseptic was held under the trust.