- (1.) HAVING heard learned counsel for both the parties and also having perused the order of the Tribunal and the terms of the agreement entered into between the assessee-trust and P. M. T. Society, we are of the opinion that a question of law does arise from the order of the Tribunal.
(2.) THE Revenue is asking for referring for two questions, namely : (1) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in holding that the income of the assessee for the assessment year 1985-86 was entitled to exemption under section 11 of the Income-tax Act, 1961 ? and (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-trust which has registered under section 12A and exempt under section 80G in earlier year but, if the expenditure is not on charitable objects in the subsequent years, could be granted exemption under section 11 ? In our opinion, however, it is enough if question No. 1 is referred. Question No. 2 merely relates to one of the reasons in support of the finding of the Tribunal and need not be referred as such. Accordingly, the Tribunal is directed to state question No. 1 of the two questions mentioned above under section 256(2) of the Income-tax Act. The application is allowed accordingly in part. No costs.;