JUDGMENT

Sen, J.-The Tribunal referred the following questions of law to the Gujarat High Court at the instance of the assessee :-

"(1) Whether on the facts and in the circumstances of the case and particularly in view of the facts that :

(a) on partial partition of the HUF the assessee received not only assets but also certain liabilities of the HUF and

(b) the income from the assets received on the partition had been considered in computing the total income of the assessee.

the Tribunal was right in holding that a part of the interest in respect of amounts due to unsecured creditors should not be allowed either by way of an over-riding title or otherwise ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that such interest as was disallowed was not admissible deduction u/s 12(2) of the I.I.T Act, 1922 ?

(3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the said interest should not be taken into account while determining the real income of the appellant?"

2. The relevant years of assessment were 1951-52, 1952-53 and 1954-55 to 1961-62. The High Court answ