1. ' SALEEM AKHTAR, J.--The Department has filed this application under section 66 (2) of the Income Tax Act 1922 praying that the following question which arises from the order of the Tribunal dated 24-10-1977 be considered and answering as the Tribunal has refused to refer it to this Court:- "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the loss of assets due to fall of East Pakistan should be considered without adjusting the liabilities in terms of Board's Circular No,11 of 1972?
2. The statement of case as filed by the Department is incomplete and material facts have not been stated. It is well recognised that the Department or any other party which applies for any question of law to be considered should state all the facts which are contained in the order of the Tribunal.
3. As the statement of facts was lacking in material particulars Mr. Shaikh Haider had to read over all the orders which were passed by the Income Tax Officer, the appellate Assistant Commissioner of Income Tax and the Tribunal.
4. ' The respondent had filed return of income for the assessment year 197273 claiming to be a non- charitable institution. This was not accepted by the Income Tax Officer, he did not allow exemption and proceeded to treat the applicant as a concern with preudominant object of business and not charity. The assessee had claimed a sum of Rs,84,139 as loss of current asset suffered due to fall of East Pakistan. The Income Tax Officer noted that liabilities of the assessee in East Pakistan were more than the current asset and as such there was a loss of current asset after adjusting the liabilties therefore, he rejected the assessee's claim. The respondent assessee filed an appeal before the Appellate Assistant Commissioner of Income Tax, which was disallowed. However, in appeal the Tribunal allowed the assessee's claim on the ground that the treatment adopted by the Income Tax Officer was not in conformity with the principle laid down by the Central Board of Revenue in Board Circular No,11 of 1972. The applicant's application under section 66 (1) of Income Tax Act was dismissed. Mr. Shaikh Haider the learned counsel strenuously argued that the Department at every stage ignored that the respondent is a Charitable Trust. This question in fact does not arise from the order passed by the Tribunal as from the very beginning the claim of the respondent to be treated as a Charitable Trust was not accepted and assessment has been made on the basis that it is a business concern. The Tribunal had applied Circular No,11 on the basis of the facts which were available on record. The Circular was issued by the Board under section 5, subsection (8) of Income Tax Act and it is binding on all the Income Tax Authorities and they are bound under law to follow the same. The Tribunal has therefore, remarked that 'it was incumbent upon the Assessing Officer to have strictly adhered to the directions given out for the tax treatment to loss of current assets in East Pakistan'. The order further recites "The authorised repres entative emphasised that it was nowhere doubted that the assets, loss of which was shown in the accounts, were of current nature, nor was their quantum ever doubted. Therefore, the treatment meted out was unjust and unfair. It was further elucidated by the learned authorised representative that in the balance sheet there went no liabilities to outsiders and all the liabilities were either reserve capital, hence whatever force which the assessing officer's argument could have stood robed off.
5. Mr. Maqbool Naeem Pasha has correctly pointed out that in view of this factual position as elucidated by the Tribunal, the order of the Assessing Officer could not stand. As the entire question is based upon factual aspect of the case, we do not see any force in this application which is dismissed.