Commissioner of Income Tax vs Divine Light Mission (No.2)

B.N. Kirpal, J.—In this petition u/s 256(2) of the Income Tax Act, 1961, the petitioner seeks a reference of the following four questions of law to this court :

"(i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct both on facts and in law in holding that the donation of Rs. 3,50,416 directly credited to the land acquisition fund formed corpus of the assesses-trust?

(ii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct both on facts and in law in holding that a sum of Rs. 33,846 spent on production and exhibition of a film was an application of income for charitable purposes as defined in the Income Tax Act?

(iii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct both on facts and in law in holding that a sum of Rs. 69,790 spent for the construction of an overhead tank on land which belonged to the legal heirs of Hanji Ram Singh, founder of the assesses-trust, was an application of income for charitable purposes ?

(vi) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct both on facts and in law in holding that a sum of Rs. 47,276 representing membership fee was not income from other sources by following their order for the assessment year 1973-74 which has not been accepted by the Department ?"

In our order passed in Income Tax Case No. 98 of 1983 on July 26, 1989, Commissioner of Income Tax Vs. Divine Light Mission (No.1), , we have directed a question similar to question No. (iv) to be referred. In our opinion, in addition thereto, question No. (i) is also a question of law as it involves the interpretation of sections 11 and 12 of the Income Tax Act.

Questions Nos. (ii) and (iii) are questions of fact and no reference need be made of the said questions.

We, Therefore, direct the Tribunal to state the case and refer the following two questions of law to this court:

"(i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct both on facts and in law in holding that the donation of Rs. 3,50,416 directly credited to the land acquisition fund formed corpus of the assesses-trust ?

(ii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct both on facts and in law in holding that a sum of Rs. 47,276 representing membership fee was not income from other sources by following their order for the assessment year 1973-74 which has not been accepted by the Department?"

There will be no order as to costs.