- (1.) UNDER section 256(2) of the Income-tax Act, 1961, two identical questions are referred in I. T. R. No. 165 of 1979 and I. T. R. No. 194 of 1979. They read as under : "(1) Whether, on the facts and circumstances of the case, the Tribunal was, in law, justified in holding that the income from sale of forms and other miscellaneous receipts was not taxable under section 10(23A) of the Income-tax Act, 1961 ? (2) Whether, on the facts and circumstances of the case, there was material on record justifying the Tribunals finding in allowing expenses at the rate of 25% of the interest income which is being brought to tax in view of the provisions contained in sections 10 and 17 of the Income-tax Act, 1961 ?"
(2.) IN I. T. R. No. 198 of 1979, the following five questions are referred under the same provision : "(1) Whether, on the facts and circumstances of the case, the Tribunal was, in law, justified in holding that the income from (1) sale of forms, (ii) sale of rules, (iii) examinations, (iv) miscellaneous receipts, and (v) training fee, was not taxable under section 10(23A) of the INcome-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was, in law, justified in holding that the interest earned by the assessee on stamp duty realised by the assessee from the persons seeking enrollment as advocates was not not taxable, in spite of the fact that, during the previous year under consideration, the assessee had claimed these funds to be its own and till January 20, 1974, the amount was held by the assessee as its own fund ? (3) Whether, on the facts and in the circumstances of the case, the amounts to be paid by the assessee under the Uttar Pradesh Advocates Welfare Fund Ordinance, 1974, could be claimed as exempt from tax in the assessment years 1967-68 to 1971-72 ? (4) Whether, on the facts and in the circumstances of the case, there was material on record justifying the Tribunals finding in allowing expenses at the rate of 25% of the interest income which is being brought to tax in view of the provisions contained in sections 19 and 57 of the INcome-tax Act, 1961 ? (5) Whether the allowance of expenses at the rate of 25% of the income from securities and interest on fixed deposits could be said to be reasonably relatable thereto ?" Both learned standing counsel for the Revenue, Sri Katju, and learned counsel for the assessee, Sri Gulati, say that these questions have become academic in view of the decision of this court in Bar Council of Uttar Pradesh v. CIT, 1983 143 ITR 584, wherein it has been held that the Bar Council of Uttar Pradesh is a charitable institution since its purposes are charitable purposes with the meaning of section 2(15) of the Income-tax Act. Once it is held that it is a charitable institution, sections 11 to 13 of the Income-tax Act get attracted and it is evident that its case will be dealt with under these provisions. By saying so, however, we may not be under stood as holding that the Bar Council is not entitled to the benefits of section 10(23A) of the Act in respect of its income derived from sale of forms and other miscellaneous receipts which benefit has already been granted to it in pursuance of the aforesaid judgment of this court. For the above reasons, we decline to answer the questions referred. We return the references to the Tribunal unanswered. The Tribunal shall pass final orders under section 260 of the Act in the light of the judgment of this court referred to above.;