1. These appeals are directed against the judgment of the Bombay High Court, dated March 12, 1987, refusing the application of the Revenue filed under section 256(2) of the Income Tax Act, 1961.
2. Earlier the Income-tax Appellate Tribunal had rejected the application of the Revenue filed under section 256(1) of the Act. The questions pertain to the assessment years 1979-80 and 1980-81. The questions on which reference was sought are as under: Assessm ent year 1979-80: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that interest of Rs.1,09,753 on fixed deposit, interest of Rs.6,16,356 on temporary loans and interest of Rs.9,52,315 on arrears of sales deposit are to be considered as business income and not income from other sources?
(2) Whether, on the facts and in the circumstances of the case, and in law the Tribunal was right in holding that interest of Rs.1,09.753 on fixed deposit, interest of Rs.6,16,356 on temporary loans and interest of Rs.9,52,315 on arrears of sales deposit are not taxable under the head 'other sources'?"
3. Assessm ent year 1980-81: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the interest of Rs.38,483 on fixed deposit, interest of Rs.9,03,465 on temporary loans and interest of Rs.11,69,621 on areas of sales deposits are to be considered as business income and not income from other sources?
(2) Whether, on the facts and in the circumstances of the case, and in law, the Tribunal was right in holding that interest of Rs.38,483 on fixed deposit, interest of Rs.9,03,405 on temporary loans and interest of Rs.11,69,621 on arrears of sales deposit are not taxable under the head 'other sources'?"
4. After hearing learned counsel for the parties, we are of the view that the questions of law to arise from the order of the Income-tax Appellate Tribunal. Accordingly, we direct the Income-tax Appellate Tribunal to draw up the statement of case and refer the aforesaid questions of law to the High Court for its opinion.
5. The appeals are allowed. There shall be no order as to costs. .