JUDGMENT
Y.R. Meena, J.
On an application filed under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), 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 sections 11 and 12 of the Income Tax Act, 1961 ?”
2. None appeared for the assessee. Heard the learned counsel for the revenue, Mr. Singhi.
3. Mr. Singhi, the 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. I.T. Reference No. 43 of 1988 dated 5-7-2002. The learned counsel for the revenue has also placed the order delivered in D.B. I.T. Reference No. 43 of 1988 for our perusal.
4. Following the view taken by us, we find no infirmity in the order of the Tribunal.
5. In the result, we answer the question referred in the affirmative, i.e., in favour of the revenue and against the assessee.
6. The reference so made stands disposed of accordingly.