( 1 ) BY this petition under Section 256 (2) of the Income-tax Act, 1961 (for short the Act), the revenue seeks a direction to the Income-tax Appellate Tribunal (for short the Tribunal) to state a case and refer the following questions, said to be questions of law and arising out of ITA No. 3317/del/85 pertaining to the assessment year 1977-78:.

"1. Whether on the facts and in the circumstances of the case, the Tribunal was correct in law in confirming the deletion by the CIT (A) of the disallowance of Rs. 2,47,463/ - relating to interest claimed by the assessee on borrowed money utilised in granting interest free advances?" 2. Whether on the facts and in the circumstances of the case, the ITAT was correct in law in deleting the disallowance of Rs. 7,200. 00being the retainership fee paid to Dr. Mithu Kothari and further allowing the entire expenses incurred on the car provided to her?" 3. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that a sum of Rs. 24,000. 00 does not fall u/s 80vv but is allowable u/s 37 (1) of the I. T. Act? 4. Whether on the facts and in the circumstances of the case, the ITAT was correct in law in hol