R.V. Raveendran, J.

1. These three references under s. 256(1) of IT Act, 1961 ('Act' for short) relate to the order of assessment dt. 11th August, 1978, passed in regard to the asst. yr. 1976-77 (year ending 31st December, 1975). Feeling aggrieved by the disallowance of certain expenditure in computing income chargeable under the head 'Profits and gains of business' and disallowance of certain deductions in computing the total income, the assessee filed an appeal before the CIT(A), I, Bangalore. The appeal was partly allowed by order dt. 28th February, 1980. Feeling aggrieved, the assessee filed ITA No. 322/Bang/80 and the Department filed ITA No. 340/Bang/1980. The Tribunal by a common order dt. 31st October, 1981, partly allowed both the appeals. The assessee sought reference of some questions of law in regard to the decision of the Tribunal in ITA No. 322/Bang/1980 in RA No. 962/Bang/1981. The Department sought reference of some questions arising out of the order of the Tribunal in ITA No. 322/Bang/1980 and ITA No. 340/Bang/1980 in RA Nos. 2 and 3/Bang/1980.

2. In pursuance of the said applications, the Tribunal by order dt. 30th November, 1982, has referred the following