N.K.Agrawal, J.

1. By a common statement of the case, the following two questions of law have been referred by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), in two reference applications to this court for opinion :

"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing weighted deduction under Section 35B to the assessee on a part of the salary and other establishment expenses ?

2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing weighted deduction to the assessee on the expenditure incurred on receiving and treating the foreign buyers in India ?"

2. The assessee derived income from export of handicrafts, brassware, readymade garments, etc. During the course of the assessment for the assessment year 1976-77, the Assessing Officer allowed weighted deduction under Section 35B of the Income-tax Act, 1961 (for short "the Act"), on the expenditure amounting to Rs. 1,64,577 only. The assessee had, however, claimed such deduction on a total expenditure, under different heads, of Rs. 12,04,147. The assessee, therefore, went in appeal a