S.J. Vazifdar, J.

1. This is a Reference under section 256(1) of the Income Tax Act, 1961. The Income Tax Appellate Tribunal, by an order dated 24th October, 1988, dismissed the applicant's appeal being ITA No. 2983/Bom/84, against the order of the Commissioner of Income-tax (Appeals) pertaining to assessment year 1980-81. The Tribunal has referred the following questions of law for the opinion of this Court:-

(1) Whether on the facts and in the circumstances of the case, the Tribunal erred in holding that the assessee was not entitled to the weighted deduction under section 35B of the Income-tax Act, 1961 in respect of bank interest and bank charges of Rs.28,20,501/-incurred by it on Export Packing Credit facilities?

(2) Whether on the facts and in the circumstances of the case, the Tribunal erred in holding that the professional fees of Rs.71,200/-paid by the assessee in respect of its cement project was a capital expenditure and not revenue expenditure?

(3) Whether on the facts and in the circumstances of the case, the Tribunal erred in holding that Rs.75,00,000/-received by the assessee from B.B.C. Brown Broweri Company Limited, Switzerland under Memorandum of Settlemen