1. This order will dispose of I. T. R. No. 43 of 1969 and I. T. R. No. 45 of 1969 which have been filed by the same assessee and similar points of law are involved in both the references. Only the year of assessment is different. The Income-tax Reference No. 43 of 1969 relates to the year 1962-63 while Income-tax Reference No. 45 of 1969 relates to the year 1961-62.

2. The relevant facts with regard to Income-tax Reference No. 45 of 1969 are that the assessee is a public limited company carrying on the business of manufacturing of sugar machinery and its component parts. In its income for the assessment year 1961-62, the assessee claimed allowance for a sum of Rs. 36,937 on account of travelling expenses of its managing director, Shri D. D. Puri. According to the assessee this expenditure was incurred by the managing director in respect of two foreign tours undertaken by him in connection with the business of the assessee-company. Out of the total claim of Rs. 36,937 a sum of Rs. 15,939 was said to have been spent by the managing director between October 4, 1959, and November 21, 1959, and the balance of Rs. 20,998 was stated to have been spent by him between April 10, 1960