TMI Blog1991 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 constituted the income of the assessee-trust in terms of section 12(2) for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 charitable trust evidenced by an indenture made on June 11, 1955, the settlor being Bai Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat 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) of the Income-tax Act, 1961. The said section was also relied upon on behalf of the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e only when the contribution is made by the trust or a charitable institution to which section 11 applies, to another trust On the face of it, section 12(2) of the Act can have no application to this case. Accordingly, there is no merit whatsoever in any of the contentions urged on behalf of the Revenue. We, therefore, answer question No. 2 in the negative and in favour of the assessee. No order a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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