AJIT K. SENGUPTA, J.

( 1 ) IN this consolidated reference, the Tribunal has referred to us the following question under Section 27 (1) of the Wealth-tax Act, 1957, for the assessment years 1973-74 and 1974-75 :"whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-trust was liable (sic) to pay wealth-tax because of the provisions of Section 21a of the Wealth-tax Act, 1957 ?"

( 2 ) SHORTLY stated, the facts are that the assessee, a charitable trust, was denied the exemption under Section 5 (1) (i) of the Wealth-tax Act by the Wealth-tax Officer who held that the assessee made prohibited investment in shares of different concerns which had made substantial contribution to the assessee-trust thereby attracting the provision of Clause (e) read with Clause (b) of Sub-section (3) of Section 13 of the Income-tax Act, 1961. The Wealth-tax Officer held that the prohibited investment in the shares of such concerns attracting Section 13 (3) did not, however, exceed five per cent, of the capital of such companies. Therefore, it was a partial violation of Section 13 (2) (h) of the Income-tax Act, 1961. The Wealth-tax Officer also noted

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