- (1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal, Chandigarh, has referred "the following questions for our opinion: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the assessee's claim for deduction of litigation expenses amounting to Rs. 32,385, Rs. 82,274 and Rs. 2,833 for the assessment years 1977-78, 1978-79 and 1979-80 were allowable under Section 37 or 57 of the Income-tax Act, 1961 ?
(2.) WHETHER, 6n the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the commission paid to the managing director for the assessment years 1978-79 and 1979-80 was not covered by Section 40 (c) of the Income-tax Act, 1961 ?
(3.) WHETHER, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals) relating to the assessment years-1978-79 and 1979-80 holding that interest of Rs. 2,12,158 is not hit by the mischief of Section 40a (8) of the Income-tax Act, 1961 ?" 2. Question No. 3 related to the assessment years 1978-79 and 1979-80 but in the question printed in the paper book, 1979-80 was omitted. Counsel for the parties agree that question No. 3 related to both the assessment years and, therefore, we have incorporated the correction in the question. A reading of para 2 of the statement of the case confirms that question No. 1 relates to three assessment years, whereas the other two questions, namely, Nos. 2 and 3, relate to two years only. 3. The assessee is Patiala Flour Mills Co. Pvt. Ltd. , and its business has been of milling of wheat into wheat products and the sale thereof, to operate cold storage plant and to invest its funds in shares of various companies.;