B.P. Colabawalla, J. - (1.) BY this Income Tax Reference under Section 256(1) of the Income Tax Act, 1961 (for short "Act), the Income Tax Appellate Tribunal (hereinafter referred to as "Tribunal"), has referred the following questions of law for a decision of this Court and which read as under: -
(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal erred in holding that the assessee was not entitled to deduction of interest of Rs. 94,029/ -, 186572, 186516/ -,1,87,140/ -3,33,997/ -, 3,57,684/ - paid on the fixed deposits under Section 80V of the Act in computing its total income? Whether on the facts and in the circumstances of the case, the Tribunal ought to have held that the interest of Rs. 94,029/ - Rs. 1,86,572/ -, 1,86,516/ - 1,87,140/ - Rs. 3,33,997/ -, Rs. 3,57,684/ - paid on the fixed deposits was an allowable deduction u/s. 80V of the Act?
(3.) WHETHER the Tribunal ought to have held that a direct nexus between the fixed deposits raised and the payment of taxes was not necessary in order to claim the deduction u/s. 80V?;