Ajit K. Sengupta, J.

1. THIS reference under Section 256(1) of the Income-tax Act, 1961, relates to the assessment year 1975-76. The assessee as well as the Commissioner, aggrieved by the order of the Tribunal, sought for reference before this court.

2. SIX questions at the instance of the assessee and three questions at the instance of the Revenue have been referred to this court.

The following questions have been referred at the instance of the assessee in R. A. No. 479/(Cal) of 1986 :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the benefit of Rs. 15,64,284 received by the assessee-company under the export incentive schemes is taxable under the Income-tax Act, 1961?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the cash subsidy on controlled cloth amounting to Rs. 49,81,892 was liable to tax under the Income-tax Act, 1961 ?

3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the sum of Rs. 60,213 representing additional expenditure incurred in payment of instalments of foreign