( 1 ) IN this reference, under Section 256 (2) of the Income-tax Act, 1961, we are concerned with the following question of law :"whether, on the facts and in the circumstances of the case, the Tribunal had any material before it to hold that the amount of Rs. 5,750 paid by the company to various parties for advertisement of the company through the souvenirs published by the respective parties were not laid out or expended wholly and exclusively for the purposes of the business ?"

( 2 ) THE reference relates to the assessment year 1965-66. The previous year ends on March 31, 1964. The assessee is a manufacturer and seller of electrical pumps and motors. In the assessment year, the assessee advertised its products in souvenirs published by various organisations and institutions and claimed deductions of the sums paid to those organisations and institutions as charged by them for inserting those advertisements.

( 3 ) THE Income-tax Officer disallowed the claim of the assessee. On first appeal, a sum of Rs. 745 was only allowed by the Appellate Assistant Commissioner who rejected the rest of the claim by holding that the primary and dominant motive of the assessee in publish