Sreedharan, J.

At the instance of the assessee and the Department, the Income Tax Appellate Tribunal, Cochin has referred the following four questions of law for decision by this Court. The first three questions arc referred at the instance of the assessee and the fourth at the instance of the Department:

"At the instance of that assesses.

(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest amount of Rs. 36,066.70 being the interest payable to the assessee as per the award of the arbitrator on the amount of Rs. 3,00,556 withheld by the P.W.D. is a revenue receipt?

(ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was following the cash system of accounting after the termination of its business in 1974 and consequently in holding that the interest amount received by the assessee during the accounting period relevant to assessment year 1979-80 is assessable in the said assessment year?

(iii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is not entitled to claim deduction during the a