( 1 ) THE Income-tax Appellate Tribunal, Delhi Bench c have referred the following question for our opinion :

"whether on the facts and in the circumstances of thecase the claim for deduction of interest levied undersection 139 to the extent of Rs. 11,4701- and in. terest levied under Section 215 to the extent ofrs. 1,04,339- was rightly rejected as not allowable.

( 2 ) THE assessee is a limited company. The income of theassessee is derived from yarn manufacture and helicopter operations. The Income-tax Officer completed the assessment forthe assessment year 1972-73 on 31-6-1972. He levied on thebasis of the assessment interest under Section 139 to the extentof Rs. 11,4701- and interest under Section 215 to the extentof Rs. 1,04,339, the total amount of interest being Rs. 1. 15,809. The assessee claimed deduction of this interest amount ofrs. 1,15,809 - under Section 37 of the Income-tax Act. 1961in computing the business profits. The Appellate Assistant Commissioner of Income-tax held that the interest was not paid inrespect of the capital borrowed for the purposes of the asscssecsbusiness. The assessee went in further appeal to the Tribunal. The Tribunal followin