JUDGMENT
1. The Tribunal has referred the following question for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 :
"Whether, on the facts and in the circumstances of the case and on a proper interpretation of Clauses (10) and (11) of the partnership deed dated August 17, 1973, the Appellate Tribunal was justified in holding that the assessee-firm was not entitled to the claim of deduction of 6.25 per cent. of the profits to which the Lok Sewa Mission Institution was entitled ?"
2. In the assessment relating to the assessment year 1975-76, the Income-lax Officer made an addition of Rs. 3,220 representing the claim for deduction made by the assessee on account of the chanty at the rate of 6.25 per cent. of the profits paid to Lok Sewa Mission pursuant to Clauses (10) and (11) of the partnership deed.
3. Then the dispute was earned to the Appellate Assistant Commissioner in appeal, who by an order dated November 20, 1976, affirmed the addition observing :
"Hence, first of all income accrues to the partners. Thereafter a portion of the income is applied for being given over to Lok Sewa Mission. Hence, it is application of income and not diversion."
4. On further appeal by the assessee, the Appellate Tribunal also rejected the assessee's contention.
5. Counsel for the assessee has not pointed out any provision of law under which deduction on the basis of Clauses (10) and (11) of the partnership deed has been claimed. No deduction can be allowed simply by virtue of a stipulation, made in the partnership deed. The assessee can claim deduction only under a provision of law, which has not at all been pointed out by the assessee. In our view, the Tribunal has rightly held that the instrument of partnership deed did not create an overriding charge, but there was simply application of the income to the extent of 6.25 per cent. of profits to Lok Sewa Mission.
6. We, therefore, answer the question in the affirmative, i.e., in favour of the Revenue and against the assessee.
7. The record of this case be sent down to the Appellate Tribunal within fifteen days to pass an order conformably to our order.