AKIL KURESHI, J.

1. This appeal is filed by the assessee challenging the judgment of the Income Tax Appellate Tribunal dated 22.06.2007 to the extent it is adverse to the appellant. Following questions were framed while admitting the appeal.

“(i) Whether on the facts and in circumstances of the case, the Tribunal was right in law in holding that Rs. 1 crore was not applied for the earthquake relief in Asst. Year 2004-05, and therefore, was income of the assessee Trust in that year in terms of section 80G(5C)(iv) read with section 12(3) of the Income Tax Act, 1961?

(ii) If the reply to question No. 1 is in the affirmative i.e. in favour of the Department, whether the assessee Trust had fulfilled the terms of section 80G(5C)(iv) by depositing one crore of rupees in Prime Minister's National Relief Fund on 31.12.2004, and therefore, it is not taxable thereon as income?”

2. These questions arise in following background: Appellant is a registered charitable Trust and is also approved u/s. 80G(5) of the Income Tax Act, 1961 ['the Act' for short]. It was created for a specific object of providing relief to the earthquake victims of Gujarat. As part of its charitable activities, the