K. Shivashankar Bhat, J.—In respect of the assessment year 1983-84, the following questions are referred under section 256(1) of the Income Tax Act, 1961 (for short "the Act"), for our consideration :

"(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was not entitled to deduction under section 80J in respect of hydrogenation plant from which there was a loss although the total income was a positive figure ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that for computing the relief under section 80HH, income from lorry hire, weighment charge, miscellaneous receipts, income from fixed deposits, etc., should not be included as they were not income of the industrial undertaking ?

(3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that deduction under section 80HH should be allowed in respect of the solvent plant on its income without setting off the loss incurred in respect of hydrogenation plant ?"

2. The assessee is engaged in the business of extraction of oil, having two plants. The hydrogenation plant suffere