( 1 ) AT the instance of the Revenue, the Income Tax Appellate Tribunal, Ahmedabad Bench "a" has referred to this Court the following question for its opinion under the provisions of section 256 (1) of the Income Tax Act,1961 (hereinafter referred to as the Act ). "whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the tax paid by the contractor in its own case by way of advance-tax and self-assessment tax should be deducted from the gross tax that the defaulter assessee should have deducted under section 194c in computing interest chargeable under sec. 201 (1a) of the Act?"

( 2 ) MR. AKIL Qureshi, learned Advocate has appeared for the applicant whereas Mr. Bhargav Karia has appeared for the respondent assessee. The facts giving rise to the present Reference in a nutshell are as under :2. 1. THE assessee is a Co. operative Society who had entered into two contracts with M/s. Ravi Builder for construction of its building. From the amount which was to be paid by the assessee society to the contractor, the assessee did not deduct any amount of tax which it was required to deduct as per the provisions of section 194c of