( 1 ) A short but interesting question which arises in this petition is as to what is the scope and ambit of sec. 35cca of the Income-tax Act 1961 and particularly sub-sec. (2) (b) thereof as amen ded by the Finance Act 1983 with effect from 1/04/1983 The question arises in the following context.

( 2 ) THE petitioner is a public charitable trust constituted under the deed of trust dated 23/11/1972 having several public charitable objects. It is registered under the Bombay Public Trusts Act 1950 and is also granted recognition under sec. 80-G of the Income-tax Act 1961 (hereafter referred to as the Act) by the Income-tax Depart ment from time to time. 1t appears that the petitioner had decided to set up a well-equipped Hospital of 100 beds an a phased manner at an estimated cost exceeding Rs. 1 crore for the general public in rural area at village Utaraj within Hansot Taluka of Broach District. It should be recalled that by the Finance Act 1978 sec. 35cca was enacted and put on the statute book with effect from 1/06/1978 Broadly stated the scheme of sec. 35cca before its amendment and inserted by the aforesaid Finance Act 1978 was that an assessee was entitled to clai