Shylendra Kumar, J.—In this reference at the instance of the revenue for the assessment year 1987-88 the Tribunal has referred the following 3 questions for the opinion of this court :

"1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessee is correct in following cash system of accounting for interest receivable on sticky loans and mercantile system of accounting for other receipts ?

2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the interest on sticky loans should be assessed on cash basis and not on accrual basis ?

3. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in holding that penal interest paid to Reserve Bank of India is not disallowable ?"

2. On a perusal of the statement of case as provided by the Tribunal it appeared that the revenue had initially sought for referring as many as 6 questions for the opinion of this court. However, the Tribunal finding that two of the questions being academic in nature, inasmuch as similar questions had been answered by this court earlier did not deem it fit to refer the same. I