1. N. V. BALASUBRAMANIAN, J.---At the instance of the Revenue, the Appellate Tribunal has stated a case and referred the following questions of law under section 256(1) of the Income Tax Act, 1961, for the opinion of this Court for the assessment year 1979-80: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the guarantee commission should be assessed to tax as business income and the expenses incurred on items of depreciation, legal expenses, payment of urban land tax, property tax, interest and loss under section 32, constitute deduction under section 37(1) of the Income-tax Act?
(2) Whether the Tribunal was right in holding that only the not dividend income after deduction of tax deducted at source from abroad, should be brought to tax and not the gross dividend?"
2. Mr. P. P. S. Janarthana Raja, learned counsel for the assessee, has undertaken to file Vakalat on February 26, 1977, and at the time of hearing he has stated that he will file Vakalat within a period of one week. Recording the said undertaking, learned counsel for the assessee is directed to file vakalat within one week. <p.m> <p.m></p.m></p.m>