T.N. Vallinayagam, J.

1. The Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated June 5, 1995, in respect of the assessment year 1984-85.

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the aggregate cost by way of payments made to the landlords, stamp and registration costs, i.e., Rs. 26,82,462 in all was not admissible as a deduction, but rent paid in advance only by way of security so that the lessor may adjust out of the said deposit monthly rent payable at the rate mentioned in the documents ?"

2. The assessee had raised two questions which are as under :

"1. Whether, on the facts and in the circumstances and on the contentions taken, the Tribunal was right in holding that depreciation was not admissible in respect of the three flats at Calcutta for the reason that the petitioner was not an owner but holds leasehold rights in respect thereof ?

2. Alternatively, and without prejudice to the foregoing, the Tribunal was right in holding that the aggregate cost by way of payments made to the landlords, stamp and registration costs, i.e., Rs. 26,82,462 in all was not admissi