( 1 ) THE Revenue sought reference under section 256 (1) of the Income-tax Act, 1961 (43 of 1961), for short, "the Act", of six questions of law as follows :" (1) Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 17,056 spent by the assessee for hosting dinners to foreign delegation members in order to entertain them in an appropriate and befitting manner is not disallowable under section 37 (2b) of the Income-tax Act, 1961, though it may be for purposes of business ? (2) Whether, on the facts and in the circumstances of the case the amount of Rs. 2,668 spent by Delhi branch of the assessee for providing lunch and dinners to customers is not to be treated as entertainment expenditure and disallowed under section 37 (2b) of the Income-tax Act 1961 ? (3) Whether, on the facts and in the circumstances of the case, a sum of Rs. 1,79,155 debited under the head "business promotion expenses" was not rightly disallowable as expenditure in the nature of entertainment expenditure and also partly as expenditure for maintenance of a guest house, for the stay of foreign guests (and not meant as holiday home for low-paid employees of assessee), u