R.K.Agrawal, J. - (1.) The Income-tax Appellate Tribunal, has referred the following question of law under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"): "1. Whether in law and on the facts of the case, the Income-tax Appellate Tribunal was correct in holding that the assessee- trust was not hit by the provisions of Sections 13(1)(c) and 13(2)(b) read with Sections 13(2) and 13(3) of the Income-tax Act, 1961?"
(2.) The reference relates to the assessment years 1976-77 to 1978-79. The brief facts of the case are as follows:
(3.) The assessee/opposite party (hereinafter referred to as "the assessee") is a trust. It was set up on October 27, 1941, by M/s. J. K. Cotton Spinning and Weaving Mills Ltd., inter alia, with the following objects: "2. (b) To erect, establish, equip, furnish, fit, maintain and repair on the said two plots of land and any other land that may hereinafter be acquired by the trustees on behalf of the trust. (i) Residential quarters, chawls or buildings for the workmen in the town of Kanpur and the surrounding areas and extensions and for their respective families and dependents and for such other skilled and unskilled workmen, craftsmen, traders, merchants, technical or professional men whom the trustees may permit to reside or work in the said two plots provided that the benefit in this clause shall be granted only to those persons who on account of poverty are in need of help and really deserve help. (ii) Public schools, pathshalas, colleges, libraries, public halls, hostels or bearing houses. (iii) Hospitals, dispensaries, museum, places of recreation, instruction, swimming baths, lakes, parks, playgrounds, temples, mosques, churches, a market or markets and, such other works and institutions of general public utility. (iv) Such other works, buildings and installations as the trustees may in their discretion think fit to provide for the advancement of any other similar object of general public utility.";