- (1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following three questions of law under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion of this Court: 1. Whether, on the facts and circumstances of the case, the Tribunal was justified in allowing the claim of deduction of Rs. 13,78,569 and Rs. 3,98,412 being expenditure incurred on scientific research and development?
(2.) Whether, on the facts and circumstances of the case, the Tribunal was legally justified in upholding the order of the learned Commissioner of Income-tax (Appeals) directing the Assessing Officer to allow claim of Rs. 25,43,025 being interest on Government loan which was correctly disallowed by the Assessing Officer?
(3.) Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the expenses of Rs. 7,79,711 relating to earlier years claimed during the year under consideration was liable to be considered in the assessment year 1986-87 which was rightly disallowed by the Assessing Officer for the year under consideration, i.e., the assessment year 1985-86 in the circumstances of the case? 2. The present reference relates to the assessment year 1985-86. 3. Briefly stated the facts giving rise to the present reference are as follows:;