Rajasekhara Murthy, J.—The following four question have been referred for opinion of this court by the Income Tax Appellate Tribune, Bangalore bench :

" (1) Whether, on the facts and in the circumstances of the case, the assessee is entitled to deprecation on capital assets which were utilised for scientific research during the previous years relevant to the assessment year 1975-76, although such assets have been purchased and brought into use for scientific research in the earlier years and full deduction under section 35 had bene given in those years ?

(2) Whether, on e fact and in the circumstances of the case, the Tribunal was right in holding that surtax payable under the Companies (Profit) Surtax Act, 1964, was an inadmissible deduction in computing the total income of the assessee?

(3) Whether, on the facts and in the circumstances of the case, the interest payable under section 220(2) of the Income Tax Act, 1961, was a allowable deduction in computing the profits of the assessee ?

(4) Whether, on the facts and in the circumstances of the case, the section 40A(5) is applicable to the remuneration paid to directors of the assesses company ?"

2. Question No. 1 is at th