V.K. Singhal, J.-The Income-tax Appellate Tribunal has referred the following three questions of law arising out of its order dated February 11, 1981, in respect of the assessment year 1978-79:

“(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the assessee is entitled to claim deduction of bank charges, legal fees and interest amounting to Rs. 9,075, Rs. 10,000 and Rs. 30,787, respectively, as revenue expenditure?

(2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the travelling and other expenses incurred on Shri Sunil Kumar Sah, director of the company, and Smt. Kum Kum Sah, w/o. Shri Sunil Kumar Sah, director, for undertaking training in production methods of costume jewellery for the new project which was proposed to be set up was capital expenditure?

(3) Whether, on the facts and in the circumstances, the Tribunal has rightly held that the assessee is not entitled to depreciation with reference to travelling expenses incurred on Shri Sunil Kumar Sah, director, in connection with his visit to Austria ?“

2. Question No. 1 has been referred