- (1.) At the instance of the Commissioner of Income-tax the Tribunal has referred the following question under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") for consideration and opinion by this Court: Whether on the facts and in the circumstances of the case, the ITAT is right in holding that the income of the assessee for assessment year 1985-86 was entitled to exemption under Section 11 of the Act.?
(2.) The brief facts of the case as found by the Tribunal are as follows: The assessee claims to be a charitable trust which came into existence through a Trust deed dated 11-7-1985 executed by one Shri Anand Prakash, whereby he settled a sum of Rs. 2,000 on the trustees to hold the same as corpus of the trust. The objects of the trust have been stated in the trust deed as follows: (a) To establish, run, maintain, promote, aid and help hospitals, Nursing Homes, Clinics, dispensaries, sanatoriums, maternity homes, pathological laboratories, other diagnosis institutions and other institutions of medical relief to the general public. (b) To help the poor patients with blood, natural and artificial limbs, medicine, food, nutrition, resettlement and other aids. (c) To help poor, needy or helpless families, individuals and persons and those displaced and victims of natural calamities. (d) To donate, subscribe, contribute, aid and help persons, associations, institutions and bodies engaged in charitable activities or objects similar to the objects of the Trust.
(3.) During the year under consideration the assessee-trust spent a sum of Rs. 5,62,917.77 paise towards the construction of a building and the question was whether this account could be said to have been spent by the assessee for charitable purposes within the meaning of Section 11(1)(a) of the Act. The Income-tax Officer held that the said amount was not spent for charitable purposes. This finding has been upheld by the learned CIT(A).;