Judgment

B.N.Mahapatra, J.

The present Income Tax Appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the “IT Act”), which arises out of the order passed in ITA No.316/CTK/2011 and C.O. No.18/CTK/2011 dated 23.09.2011 passed by the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack for the assessment year 2007-08, has been filed at the instance of the Commissioner of Income Tax, Ayakar Bhawan, Rajaswa Vihar, Bhubaneswar, Dist. Khurda.

2. According to the appellant, the following substantial questions of law are involved in the present Income Tax Appeal:

(i) Whether in the facts and circumstances of the case and in view of the decision of the Hon’ble High Court of Uttarakhand in the case of CIT Vs. Queens Educational Society reported in 319 ITR 160, the learned Income Tax Appellate Tribunal is correct in law in holding that the assessee Trust is not running with profit motive and is eligible for exemption under Section 11 of the I.T. Act, 1961?

(ii) Whether in the facts and circumstances of the case and when the assessee Trust is not eligible for exemption under Section 11 of the Act, the learned ITAT is correct in law in holding that capital expenditu