( 1 ) AT the instance of the Revenue, the Income-tax Appellate Tribunal, Allahabad Bench, has referred the following three questions relating to the assessment year 1972-73 under Section 256 (2) of the Income-tax Act, 1961, for the opinion of this court :

" 1. Whether, on the facts and in the circumstances of the case, the Tribunal, was legally correct in allowing the assessees claim of interest of Rs. 1,90,435 paid on account of late payment of cane purchase tax?

( 2 ) WHETHER, on the facts and in the circumstances of the case, the Tribunal was justified in reducing the disallowance of interest made by the Income-tax Officer on the ground that part of the bank overdraft for which such interest was paid was utilised by the persons substantially interested in the affairs of the company and by the concerns closely connected with them?

( 3 )

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in basing its findings on the proposition that in a case like that mentioned in question No. 2 only the overall position should be considered and not the individual account of the person utilising the fund of the company?"

2. Question No. 1.-- The ass