JUDGMENT V.K. Singhal, J.—The Income Tax Appellate Tribunal has referred the following question of law arising out of its order dated June 16, 1992, for the assessment year 1983-84. "Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the repayment of debt incurred by the asses-see for the construction of the commercial building taken up by the asses-see for the purpose of augmenting its funds, should be treated as 'application' of the income of the assesses trust for charitable purposes ?" 2. The assessee is a trust. While framing the assessment order for the assessment year 1983-84, the Assessing Officer did not treat the repayment of loan taken by the assessee for the purpose of construction of a commercial complex as income applied for charitable purposes. In an appeal filed by the assessee, the Deputy Commissioner of Income Tax (Appeals) directed the Assessing Officer to allow the assessee's claim. Against the order of the Deputy Commissioner of Income Tax (Appeals), the Department appealed before the Income Tax Appellate Tribunal. 3. The controversy in the present matter is covered by the decision given in ITRC Nos. 100-102 of 1993, dated August 9, 1995 Commissioner of Income Tax Vs. Janmabhumi Press Trust, (2000) 242 ITR 457 KAR wherein it was observed (page 458) : "It is plain that when the assessee is a trust entitled to benefit under Section 11 of the Income Tax Act, the only question that arises for consideration is whether that income or the accumulated income thereof is applied for charitable purpose. If investments have been made in the construction of a building which in turn would augment its income, it should also be held that the application of the funds is for the purpose of the trust. On this principle, we do not think there can be any quarrel. We are fortified in our view by the decision of the Kerala High Court in Commissioner of Income Tax Vs. St. George Forana Church, (1988) 170 ITR 62 Ker, which in turn relied upon a decision of the Madras High Court in Commissioner of Income Tax Vs. Kannika Parameswari Devasthanam and Charities, (1982) 133 ITR 779 Mad." 4. We are fortified in our view by the decision of the Kerala High Court in Commissioner of Income Tax Vs. St. George Forana Church, (1988) 170 ITR 62 Ker, which in turn relied upon a decision of the Madras High Court in Commissioner of Income Tax Vs. Kannika Parameswari Devasthanam and Charities, (1982) 133 ITR 779 Mad." 4. In view of the above observation, the reference is answered in favour of the assessee and against the Revenue and it is held that the Tribunal is right in holding that the repayment of debt incurred by the assessee for the construction of the commercial building taken up by the assessee for the purpose of augmenting its funds, should be treated as "application" of the income of the assesses trust for charitable purposes.