Judgment

HEGDE, J. :- This is an assessee s appeal by certificate under S. 66A (2) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the Act). The Income-tax Appellate Tribunal, Calcutta B Bench as per the directions given by the High Court in an application under S. 66 (2) submitted the following question for ascertaining the opinion of the High Court.

"Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 1,56,806/- was wholly and exclusively laid out for the purpose of business and as such allowable as a business expenditure."

2. The High Court has answered that question in the negative and in favour of the Revenue. The correctness of the decision of the High Court is challenged before us by the assessee.

3. The question referred to the High Court for its opinion proceeds on the basis that the facts and circumstances of the case as found by the Tribunal are not in dispute but what is disputed is the legal effect of the facts and circumstances found by the Tribunal. As held by this Court in the earlier decisions that when a question refers to the facts and circumstances in the case, it means the facts and