( 1 ) THE questions posed for our consideration by the Tribunal under section 256 (1) of the Incometax Act, 1961 (to be referred to in short as "the Act".), are as follows :

"1. Whether on the facts and in the circumstances of the case, the amount of Rs. 4 lakhs debited by the assessee to "deferred Revenue Expenditure. Technical know-how payment Account"was expenditure of a capital nature ?

"2. If answer to question No. 1 is in the affirmative, whether on the facts and in the circumstances of the case Tribunal erred in law in holding that the assessee company was not entitled to depreciation in respect of the said amount of Rs. 4 lakhs. 3. Whether on the facts and in the circumstances of the case, the amount of Rs. 1,09,191 paid by the assessee to Brotherhood Limited represented expenditure of a capital nature ? 4. If answer to question No. 3 is in the affirmative. whether on the facts and in the circumstances of the case, the assessee company was entitled to depreciation in respect of the whole or a part of the amount of Rs. 1,09,191.

( 2 ) THE assessee is a public limited company manufacturing turbines and other machinery. The four assessment years with which we are