( 1 ) THE Income-tax Appellate Tribunal, Delhi Bench b has referred to this Court under Section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) the following question of law in respect of assessment years 1969-70 and 1970-71.

"whether on the facts and in the circumstances and on true interpretation of Section 40 (a) (v) of the Income-tax Act, 1961 reimbursement of the medical expenses to the managing director has been correctly restricted by the Tribunal to Rs. 12,0001- for each of the assessment years 1969-70 and 1970-71 ?"

( 2 ) THE facts of the case may be stated briefly. Shri Raj Bans Bahadur, Managing Director of the assessee company was taken ill in July 1967. He suffered partial paralysis and was admitted to a nursing home. He remained in the nursing home for sometime, but even after his discharge be required medical treatment which included the services of a qualified nurse who was attending on him day and night. In August 1967, the Board of Directors of the assessee company decided to reimburs e such medical expenses of the Managing Director as may be incurred by him. For the assessment year 1967-69 (year ending on 31st March, 196