1991 (2) TMI 93

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..... -The Income-tax Appellate Tribunal has referred the following two questions of law to this court under section 256(1) of the Income-tax Act, 1961. The said questions are as under : "1. Whether, on the facts and in the circumstances of the case, the donations received by the assessee-trust from other charitable trusts amounting to Rs. 2,12,800, Rs. 2,66,500 and Rs. 1,49,000 or any part thereof....

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....e on this aspect. Counsel are agreed that the answer to question No. 1 is, therefore, covered by the judgment of our High Court in the case of Trustees of Kilachand Devchand Foundation v. CIT [1988] 172 ITR 382. Accordingly, question No. 1 is answered in the negative and in favour of the assessee. As regards question No. 2, it is necessary to state a few facts : The assessee is a public char....

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....e loans advanced by it. It is, however, contended by learned counsel for the Revenue that since loans were granted in part out of the income exempted under section 11 of the Income-tax Act, 1961, the receipt back of the said amounts of loans should be construed as income of the trust. It is not possible to accept this submission. Learned counsel for the Revenue has also relied upon section 12(2) o....