Gokal Chand Mital, J.

1. The assessee is a registered firm. During the accounting year relevant to the assessment year 1981-82, it got interest amounting to Rs. 1,62,410 from the partners on the withdrawals made by them in the current account. The partners had made deposits with the firm and on those deposits during that period, they were paid interest amounting to Rs. 1,08,287. During the assessment, the Income-tax Officer added back interest of Rs 1,,08,287 as, under Section 40(b) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), deduction of interest paid to the partners could not be allowed. The assessee obtained some relief from the Commissioner of Income-tax (Appeals). On further appeal to the Income-tax Appellate Tribunal (for short "the Tribunal"), Delhi, the assessee got the entire relief in regard to the interest of Rs. 1,08,287 paid to the partners, in view of certain decisions referred in the order. In this background, the following question has been referred for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the addition of Rs. 1,08,287 as interest paid to part