ORDER :

Bechu Kurian Thomas, J.

The Income Tax Appellate Tribunal has referred the following questions of law to this Court, under Section 256(1) of the Income Tax Act, 1963. (for short 'the Act') relating to the assessment year 1995-96.

“1. Whether on the facts and circumstances of the case, was the Appellate Tribunal right in holding that the amount that has ceased to be a liability under section 41(1) of the Income Tax Act to be assessed as income is Rs.53,71,650/-or Rs.30,68,152/-is not a debatable issue and can be the subject matter of adjustment under sec.143(1)(a) of the Income Tax Act?

2. Whether on the facts and circumstances of the case was the Tribunal right in holding that the assessee is not entitled to deduction of the tax and interest amounting to Rs.23,03,498/-paid by the assessee from out of the gross royalty amount of Rs.53,71,650/-credited to the account of the foreign collaborator in 1990 and written back in the previous year relevant to the assessment year 1995-96?

3. Whether, on the facts and circumstances of the case should not the Tribunal have held that the cessation of liability and value of benefit that accrued to the assessee is only the differential amount o