( 1 ) THIS is an income-tax application under Section 256 (2) of the Income-tax Act, 1961, seeking reference of the following questions to us for our opinion :

"whether in view of the findings recorded by the Tribunal that the facts as narrated by the departmental authorities have not been disputed, accepting deposits on loan under various schemes and converting them into income was a regular trading activity of the assessee liable to tax under the Income-tax Act ? whether the Income-tax Appellate Tribunal was justified in holding that the entire deposit received by the assessee was capital receipt when in the terms and conditions of the application form itself, there is a condition that a part of the deposit will be deducted as administrative and process charges if prematurity payment is taken by the depositor ? whether the Income-tax Appellate Tribunal was justified in treating the deposits as of capital nature when in the cases of CIT v. Karam Chand Thapar [1996] 222 ITR 112 and CIT v. Lakshmi Vilas Bank Ltd. [1996] 220 ITR 305, the apex court has held that any amount deducted/retained/forfeited by the assessee was its income made in the course of its business and had to be asses

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