ELIPE DHARMA RAO, J

1. Both these appeals were preferred by the Revenue against the two separate orders passed by the Income Tax Appellate Tribunal Madras 'C' Bench, dated 4.4.2007 in ITA.No.954/Mds/2005 for the assessment year 1999-2000 and 15.6.2007 in ITA.No.969/Mds/2006 for the assessment year 2001-2002 respectively.

2. While admitting the T.C.A.No.1415 of 2007, the following substantial question of law has been formulated for consideration: -

"Whether in the facts and circumstances of the case, the Tribunal was right in holding that the expenditure incurred on issue of shares is eligible to be authorised u/s.35D of the Income Tax Act ?

3. Similarly, while admitting the T.C.A.No.48 of 2008, the following substantial questions of law were formulated: -

"1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the expenditure incurred on issue of shares is eligible to be authorised u/s.35D of the Income Tax Act?

2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the payment of bonus into an employees bonus trust is not hit by Section 40A(1) sic., 40A(9) of the Income Tax Act ?

3. Whether in the