JUDGMENT

RANGANATH MISRA, J. : —This appeal at the instance of the Revenue is by special leave. Two questions out of six referred by the Income-tax Appellate Tribunal, Allahabad, survive for consideration in this appeal and these are :

(1) Whether on the facts and in the circumstances of the case, and on a true interpretation of the agreement, the Tribunal erred in holding that the sum of Rs. 9,000/- received as interest from Bazpur Co-operative Sugar Factory Ltd. is not covered under S. 14(3) of the Income-tax Act?

(2) Whether on the facts and in the circumstances of the case, and, on a true and correct interpretation of the various clauses of the agreement, the sum of Rs. 51,295/- and Rs. 58,937/- received as interest on advances would not be assessees income from coal and sugar business and would thus be exempt under Section 14(3) of the Income-tax Act, 1961 [( *or I.T. Act (1922) Ed.)

2. At the hearing it has been clarified by counsel for both parties that in the second question referred to above, the dispute is confined to the sum of Rs. 51,295/- only.

3. The relevant assessment year is 1961-62 corresponding to the accounting year ending with 30th June, 1960. The assessee is a co