C.S.P. Singh, J.

1. THE reference relates to the assessment years 1968-69 and 1969-70. It has been at the instance of both the assessee and the department. THE questions referred at the instance of the parties are :

At the instance of the Commissioner for A.Y. 1968-69.

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the conference hall was a building which was being used by the assessee as a hotel within the meaning of Section 32(1)(v) of the I.T. Act ?

2. Whether, on the facts arid in the circumstances of the case, the Tribunal was correct in holding that half of the profits of the current year were liable to be added while computing the capital of the assessee for working out the relief due to it under Section 84 of the Income-tax Act for assessment year 1967-68 ?

3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the loan of Rs. 23,74,000 taken by the assessee from the Industrial Finance Corporation of India was not liable to be deducted while computing its capital for working out the relief due to it under Section 80 J of the Income-tax Act ? "

At the instance of the