N.K.Agrawal, J.

1. The following two questions of law have been referred to this court for opinion under Section 256(1) of the Income-tax Act, 1961 (for short "the Act") :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing weighted deduction under Section 35B to the assessee on a part of the following expenses, viz., establishment expenses, printing and stationery expenses, expenses on vehicle repairs, meeting fees, export promotion expenses, travelling expenses, foreign telex and telephone expenses and foreign postage ?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the expenditure of Rs. 5,000 incurred by the assessee on advertisement in the souvenir brought by the Indian National Congress was allowable as business expenditure ?"

2. The assessee, a private limited company, was engaged in the manufacture and sale of sports goods. A return of income for the assessment year 1976-77 (accounting year ending on March 31, 1976), was filed, declaring a total income at Rs. 6,45,800. The assessee subsequently revised the return showing total income at Rs. 5,56,800. Relief u