MISHRA, J. :

Tax Case No. 1012 of 1981 :

At the instance of the Revenue, the following questions of law have been referred to this Court under s. 256(1) of the IT Act, 1961, by the Tribunal, Madras, for its opinion :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was carrying on business and that the income of the assessee should be computed under the head 'Business' ?

2. Whether the Tribunal was right in holding that no income from property No. 24, Edward Elliots Road, Madras, should be computed for inclusion in the assessee's total income ?

3. Whether the Tribunal was right in holding that the assessee was entitled to have set off of carry forward losses of the earlier years against the income of the asst. yr. 1975-76 ?

4. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that interest of Rs. 4, 53, 710 being the interest on money taken on fixed deposits for paying the estate duty on the estate of late Sri Anantharamakrishnan should be allowed as a deduction ?

5. Whether the Tribunal was right in holding that deduction under s. 80M should be allowed on the gross d