(a) Income-tax---

----Reference---Whether Tribunal justified in holding that no interest accrued to assessee on sticky advances---Is question of law to be referred---Indian Income Tax Act, 1961, S.256.

Whether the Tribunal was justified in holding that no interest accrued to the assessee on sticky advances and whether it was justified in holding that the amount written off as bad debt is not includible for charging interest under the Interest Tax Act are questions to be referred.

(b) Income-tax---

----Reference---Bad debt written off---Whether not includible for charging interest under Interest Tax Act---Is question of law to be referred---Indian Income Tax Act, 1961, S.256---Indian Interest Tax Act, 1974.

JUDGMENT

Raising identical questions, the Revenue made an application registered as I.T.A. No. 266 of 1993 relating to the assessment year 1984-85, which was decided by this Court by order, dated December 5, 1995.

Following this Court's order dated December 5, 1995, in the aforesaid I.T.A. No.266 of 1993, we direct the Appellate Tribunal to draw up a statement of the case and refer the following questions to this Court for its opinion:

"(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no interest was accrued to the assessee on sticky advances?

(2)Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount written off as bad debt is not includible for charging interest under the Interest-tax Act? "

The application is, therefore, allowed.

M.B.A./1232/FC