( 1 ) THESE two references are taken up together for consideration. In Income-tax Reference No. 7 of 1961 the following question was posed for consideration by this court under Section 66 (1) of the Indian Income-tax Act, 1922 (hereinafter called the "act"):"whether, on the facts and in the circumstances of the case, the sum of Rs. 5,60,199 was an admissible deduction in computing the business profits of the assessee ?"

( 2 ) IT appears that the Commissioner of Income-tax suggested certain questions for being sent up to this court for consideration in his application under Section 66 (1) of the Act before the Tribunal. The Tribunal, however, only sent up the above question to this court. The matter was, therefore, taken up by the Commissioner of Income-tax under Section 66 (2) of the Act to this court. This court asked for a further statement of the case on the following questions framed by it. They are as follows :"1. Whether there was any evidence in support of the Tribunal's finding that the assessee-company had stood guarantee for the loan given to Messrs. U. P. Sales Corporation Limited by the Gwalior Industrial Bank Limited ? 2. If the answer to question No. 1 be in