Y.R.MEENA, J. - (1.) ON an application filed under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that even if the assessee-trust is assumed to be a valid charitable trust at the inception, in any case, it ceased to be a charitable trust, as it indirectly carried on a profit earning activity by having let out the first floor to a firm in which one of the trustees was a partner and, therefore, it was not entitled to exemption under ss. 11 and 12 of the IT Act, 1961 ?"
(2.) NONE appeared for the assessee. Heard learned counsel for the Revenue Mr. Singhi. Mr. Singhi, learned counsel for the Revenue, brought to our notice that identical issue has been considered by this Court in the case of this very assessee in D.B. IT Ref. No. 43/88 dt. 5th July, 2002 [reported as Ram Bhawan Dharamshala vs. State of Rajasthan (2002) 176 CTR (Raj) 384- Ed.] Learned counsel for the Revenue has also placed the order delivered in D.B. IT Ref. No. 43/88 for our perusal.
(3.) FOLLOWING the view taken by us, we find no infirmity in the order of the Tribunal. In the result, we answer the question referred in affirmative i.e., in favour of the Revenue and against the assessee. The reference so made stands disposed of accordingly.;