( 1 ) BY this reference under Section 256 of the Income Tax Act, 1961, made at the instance of the assessee, opinion of the High Court is sought for on the following questions of law (relevant to the assessment year 1974-75) :-

1. Whether, on the facts and in the circumstances of the case the Tribunal was correct in sustaining the disallowance of Rs. 9,894. 00 being expenditure on the boarding and lodging of the partners of the assessee firm incurred in the course of tours undertaken by them for the business of the assessee firm, as not an expenditure wholly and exclusively incurred for the purposes of the assessee s business in terms of Section 37 (1) of the Income Tax Act, 1961? 2. Whether, the Tribunal was correct in sustaining the consequential rejection of the assessee s claim for weighted deduction u/s. 35b of the Income Tax Act, 1961 as regards the expenditure of Rs. 9,894. 00 referred to above?"

( 2 ) THE assessee-firm carries on business as exporters of handicraft items and readymade garments. The assessee made a claim for expenditure on foreign travelling amounting to Rs. 73,687. 00 which included an amount of Rs. 29,681. 00 on account of hotel expenses and conv