ORDER

Leave granted.

2. We are concerned with the following questions, which were answered, in the judgment and order of the High Court at Madras which is under appeal, in the negative and in favour of the revenue.

"1. Whether, on the facts and in the circumstances of the case, and having regard to the provisions of Section 36(1)(iii) of the Income Tax Act, 1961, the Appellate Tribunal was right in holding that the interest attributable to the loans borrowed by the assessee firm for the purpose of construction of Safire Theatre should be allowed under the head "business" especially when the theatre complex was sold as a going concern on 31.7.1965 and the business of exhibition of cinematographic films stopped on and from 31.7.1965 ?

2. Whether the conclusion of the Appellate Tribunal that the business carried on by the assessee as jewellers and in the running of the cinama theatre, restaurant, etc., are composite is based on valid materials and is a reasonable view to take on the facts and in the circumstances of the case?"

3. The assessment years with which we are concerned are Assessment Years 1967-68, 1968-69 and 1969-70.

4. The a