( 1 ) THE assessee is a company and the relevant assessment years are 1968-69 and 1969-70, corresponding accounting period being the calendar years ended on 31st December, 1967, and 31st December, 1968, respectively. The following questions of law have been referred by the Tribunal for opinion of this court :" 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 8,35,359 and Rs. 3,30,965, being the additional expenses incurred by the assessee in the payment of its loan to the Bank of Scotland due to the devaluation of the Indian rupee, was an expenditure wholly and exclusively laid out by the assessee for the purpose of its business and as such was an allowable revenue expenditure under Section 37 (1) of the Income-tax Act, 1961, for the assessment years 1968-69 and 1969-70, respectively ?

( 2 ) WHETHER, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 8,71,399, being the amount of guarantee commission paid to the bank represented a part of the capital expenditure and, therefore, was not allowable under Section 37 (1) of the Income