JUDGMENT - S.H. KAPADIA, J.:---By this reference under section 256(1) of the Income Tax Act, 1961, at the instance of the assessee, the Income Tax Appellate Tribunal has referred the following questions of law to this Court for opinion.

"1. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that proportionate salary of employees of assessee for the period of their stay outside India in the ordinary course of their employment should not be excluded from the total salary while computing disallowance under section 40-A(5) of the Income Tax Act, 1961?"

2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount representing medical reimbursement given to employees which was not treated as perquisite in computing disallowance under section 40-A(5) of the Income-Tax Act, 1961 should be treated as part of salary for computation of disallowance under said provision?"

3. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that amount payable towards surtax was not liable to be deducted in computing the profits and gains of the business of t

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