S.J. Vazifdar, J.

1. This is a Reference under section 256(1) of the Income Tax Act, 1961, arising from the order of the Income Tax Appellate Tribunal in ITA No.5873/Bom/86 and ITA 6060/Bom/86, relating to the assessment year 1983-84. The applicant-assessee and the respondent-Department filed two separate reference applications each. The Tribunal drew up a statement of case seeking the opinion of this Court on the following questions which were at the assessee's request:

“(i) Whether on the facts and circumstances of the case, the Tribunal was right in holding that the expenses incurred by the employee after reaching the place of destination including stay expenses was to be treated as disallowance u/s 39 read with Rule 60?

(ii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that reimbursement of medical expenses form part of salary / remuneration for computing disallowance u/s. 40(c)?

(iii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that for quantifying disallowance u/s 40(c) expenditure incurred by the company towards the personal use of motor cars provided to the Directors wa