R.K.Agrawal, J. - (1.) In the IT Ref. No. 7 of 1987 which arises under the Income-tax Act, 1961, hereinafter referred to as the IT Act, the Tribunal, Allahabad, has referred the following three questions of law under Section 256(1) of the IT Act, for opinion to this Court: "1. Whether, on the facts and circumstances of the case, the Tribunal, Allahabad, was justified in holding that an investment of the value thereof received by a trust by way of donation cannot be treated as an investment within the meaning of Section 13 of the IT Act, 1961 ? 2. Whether, in the law and on the facts of the case, the Tribunal was justified in holding that the ITO was wrong in invoking the provisions of Section 13(1) (certiorari quashing the order dated) and Section 13(2)(h) of the IT Act, 1961, in this case ? 3. Whether, in law and on facts of the case, the Tribunal was justified in allowing exemption under Section 11 of the IT Act, 1961, to the trust ?"
(2.) Whereas in WT Ref. No. 11 of 1987, which arises under the WT Act, 1957, hereinafter referred to as the WT Act, the Tribunal, Allahabad, has referred the following three questions of law under Section 27(1) of the WT Act, for opinion to this Court: "1. Whether, in law and in circumstances of the case, the Tribunal, Allahabad, was justified in holding that an investment of the value thereof received by the trust by way of donation cannot be treated as an investment within the meaning of Section 13 of the IT Act, 1961 ? 2. Whether, in law and on facts of the case, the Tribunal was justified in holding that ITO was wrong in invoking the provisions of Sections 13(1)(c) and 13(2)(h) of the IT Act, 1961, in this case ? 3. Whether, in law and on facts of the case, the Tribunal was justified in allowing exemption under Section 11 of the IT Act, 1961, to the trust ignoring the following facts : (a) that M/s J.K. Synthetics Ltd. had made a substantial contribution, i.e., for Rs. 70,000 to the corpus of the assessee-trust and was prohibited person within the meaning of Section 13(3)(b) of the IT Act, 1961 ? (b) That the assessee-trust was hit by provisions of Section 13(2)(h) of the IT Act, 1961, as the funds of the assessee-trust to the extent of Rs. 13,400 were invested in equity shares of M/s J.K. Synthetics Ltd. who was prohibited person within the meaning of Section 13(3)(b) of the IT Act, 1961 ?" As both the references relate to Shri Radha Krishna Temple Trust, Kanpur, they are taken up for hearing together and are being decided by a common order.
(3.) The IT Ref. relates to the asst. yrs. 1973-74, 1976-77 and 1978-79 whereas the WT Ref. relates to the asst. yr. 1973-74.;