Ashok Bhan, J. - (1.) These two appeals have been filed by the appellant-as sessee (hereinafter referred to as the assessee) with the leave of the Court against a common judgment dated 13th day of November, 2001 passed by the High Court of Kerala at Ernakulam in Income Tax Reference Nos.234 of 1997 and 310 of 1999.
(2.) The following two questions were referred by the Income Tax Appellate Tribu nal, Cochin to the High Court at the instance of the revenue in ITR No.234 of 1997 for its opinion : "1.Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that the assessee is entitled to deduct the entire amount of interest as revenue expenditure under Section 37 of the Income-tax Act 2.Whether, on the facts and in the circumstances of the case and also on an inter pretation of the agreement dated 27-9-1993, the Tribunal is right in holding that the assessee would not only to forfeit the advances but also stand exposed to civil and criminal action and in that sense allowing the payment of interest as contractual obligation
(3.) The following two questions were referred by the Income Tax Appellate Tribu nal, Cochin to the High Court at the instance of the assessee in ITR No.310 of 1999 for its opinion : "1.Whether the Tribunal was right in rectifying the order passed under Section 256(1) on the ground that there was a mistake apparent from record 2. Whether the Tribunal was right in holding that it has inherent power for rectify ing the order under Section 256(1) for rendering justice ;