Dipak Kumar Sen, J. - (1.) On an application of the Revenue under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions, as questions of law arising out of its order, for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the sum of Rs. 26,426 paid by the assessee to the South British Group of Companies under the terms of treaty agreement dated June 8, 1965, was an admissible deduction from the assessee's income ?
(2.) "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is entitled to relief under Section 80M of the Income-tax Act, 1961, on the gross amount of dividend received by it without any reduction of the proportionate expenses of the business ?" 2. Question No. 2 is covered by a series of decisions of this court including that in Income-tax Reference No. 347 of 1980 intituled Calcutta Discount & Co. Ltd. v. CIT. Following the said decisions, we answer the question in the affirmative and in favour of the Revenue.
(3.) The above answer is given on the basis of the Finance (No. 2) Act of 1980 by which a new Section 80AA was incorporated in the Income-tax Act, 1961, with retrospective effect. We note that the said amendment is under challenge before the Supreme Court in Distributors Baroda (Pvt). Ltd. v. Union of India [1985] 155 ITR 120. We direct the Tribunal to consider the decision of the Supreme Court, if any, while disposing of the case under Section 260 of the Income-tax Act, 1961.;