C. S. P. SINGH, J.

( 1 ) THE Income-tax Appellate Tribunal, Delhi Bench, Delhi, has referred the following four questions for the opinion of this court.

"1. Whether the Tribunal was in law justified in allowing the assessees claim in respect of interest on the arrears of sales tax in computing the assessees income for the year under consideration ? 2. Whether the interest on the outstanding balance of sales tax was an allowable deduction under the Income-tax Act ? 3. Whether there was material on record justifying the Tribunals finding that the liability of Rs. 69,383 for damages had crystallised in the accounting period relevant to the assessment year under consideration ? 4. Whether the claim of the assessee for damages could be held to be an allowable deduction in computing the assessees income liable to assessment for the year under consideration ? "

( 2 ) SO far as the first two questions are concerned, they are clearly covered by the decision of this court in the case of Saraya Sugar Mills P. Ltd, v. CIT [1972] 116 ITR 387 (FB) and in view of that decision the assessees claim for interest on the arrears of sales tax and interest on the outstanding balance of the sales tax was

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