A.K. Mathur, C.J.

1. This is an income-tax reference at the instance of the Revenue under Section 256(1) of the Income-tax Act, 1961. The Tribunal has referred the following three questions of law for answer by this court :

" (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals) who directed to make two separate assessments for the periods from January 1, 1981, to June 30, 1981, and July 1, 1981, to December 31, 1981 ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals) who held that the first trust executed on August 1, 1978, was validly extinguished on July 1, 1981 ?

(3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the trust created on July 1, 1981, could not be said to be unlawful not to apply the provisions of Section 161 of the Income-tax Act, 1961 ?"

2. The brief facts giving rise to this reference are that the assessee-trust had filed its return on June 29, 1981, declaring "nil" income. The Assessi