T. Chandrasekhara Menon, J.

1. Two questions have been referred to this Court under S.256(1) of the Income Tax Act, 1961, by the Income Tax Appellate Tribunal, Cochin Bench, which are said to arise from an order of the Tribunal disposing of the appeals filed by the assessee, Cochin Refineries Ltd., Ambalamugal and the department for the assessment year 1971-72. The two questions are:

(1) Whether, on the facts and in the circumstances of the case, and on an interpretation of the agreements entered into by the Company with certain financiers, the Tribunal is right in law in treating the medium term dollar loan amounting to Rs. 90,00,000 and dollar loan amounting to Rs. 1,31,86,875 as debentures for the purpose of granting relief under S.80J of the Income Tax Act, 1961?

(2) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in treating the interest income from bank deposits as business income of the assessee for the purpose of S.80J of the Income Tax Act, 1961?"

2. At the outset itself we might state that we answer question No. 2 against the assessee and in favour of the revenue in view of the decision of this Court in rega