V. P. Gopalan Nambiyar, C. J.

1. This reference by the Income Tax Appellate Tribunal, Cochin Bench, raises the following questions of law for our determination and opinion:

"(1) Whether, on the facts and in the circumstances of the case, and on the interpretation of S.37(3) of the Income Tax Act, 1961, read with R.6C of the Income Tax Rules, 1962, the Income Tax Appellate Tribunal is correct in law in holding that the rule provides only for guest houses and no rule has been made for residential accommodations other than guest houses, and hence no registers need be kept for claiming deduction for expenditure incurred towards the maintenance of the residential accommodations other than guest houses.

(2) Whether, on the facts and in the circumstances of the case, and on the interpretation of S.37 of the Income Tax Act, the Income Tax Appellate Tribunal is correct and justified in law and had materials before it in holding that the expenditure of Rs. 50,000 incurred by the assessee towards valuation of its properties, is one wholly and exclusively for the purposes of its business, and hence an allowable deduction?"

The assessee is the Common Wealth Trust Ltd., Calicut, a private li