N. V. Balasubramanian, J.-In pursuance of the direction of this court in T. C. P. No. 583 of 1982, dated April 11, 1983, the Income-tax Appellate Tribunal has stated a case and referred the following questions of law :

"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 15 lakhs due by the assessee to the Tamil Nadu Industrial Investment Corporation Limited as on July 1, 1971, was includible in the capital base as provided in clause (v) of rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 ?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the mortgage loans of Rs. 60 lakhs and Rs. 2, 58, 981 respectively from the Syndicate Bank and the Punjab National Bank were includible in the capital base in terms of clause (v) of rule 1 of the Second Schedule to the Companies (Profits) Surtax Act, 1964 ?"

The tax case arises under the provisions of the Companies (Profits) Surtax Act, 1964:

"any moneys borrowed by it from Government or the Industrial Finance Corporation of India or the Industrial Credit and Investment Corporation of Indi