J.V.Gupta, J.

1. Income-tax References Nos. 50 to 52 of 1976 will be disposed of by this order as they arise out of one order of reference dated December 26, 1975 of the Income-tax Appellate Tribunal, Chandigarh Bench (hereinafter called "the Tribunal"), in which the following questions of law have been referred for the opinion of this court under Section 256(1) of the I.T. Act (hereinafter called " the Act").

"(i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified, in law, in holding that the amount of Rs. 9,859 was chargeable to tax under Sub-section (1) of Section 41 of the Income-tax Act for the assessment year 1966-67 ?

(ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified, in law, in holding that the amount of Rs. 12,103 was chargeable to tax under Sub-section (1) of Section 4-1 of the Income-tax Act for the assessment year 1969-70 ?

(iii) Whether, on the facts and in the circumstances of the case, the Tribunal was right, in law, in upholding the deletion of Rs. 29,237 by the Appellate Assistant Commissioner out of the guest house expenses for the assessment year 1969-70 ?"

2. As regards the fir