Honble SINGHAL, J.—The Income-tax Appellate Tribunal has referred the following three questions of law arising out of its order dated 11.2.1981 in respect of 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. 9075-/, 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 travel tag 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 produc-tion 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 on the application of Commi

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