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Section 256(2) of the Income-tax Act, 1961 - Reference - Question of law - IAC (assessment) disallowed assessee's claim for deduction of expenses incurred on foreign travel and on medical treatment of its director - Tribunal however, allowed entire expenses as business expenditure - Whether referable question of law arose out of tribunal's order - Held, yes FACTS The assessee-company, engaged in manufacture and sale of steel ingots, incurred expenditure on foreign travel and on medical treatment of one of its directors during the assessment year 1981-82. The IAC (Assessment) disallowed the entire expenses claimed by the assessee as business expenditure. On appeal, the Tribunal, however, held that the said expenses were admissible as business expenditure and rejected the revenue's application seeking reference. On an application under section 256(2): HELD Referable question of law did arise out of the Tribunal's order. Hence, the revenue's application was allowed. R.C. Mukati for the Applicant. Brajesh Pandiya for the Respondent. ORDER Sohani, Actg. CJ. - This is an application under section 256(2) of the Income-tax Act, 1961 ('the Act'). 2. The material facts giving rise to this application, briefly, are as follows: The assessee is a private limited company deriving income from manufacture and sale of steel ingots. During the assessment year 1981-82, the assessee incurred expenditure on foreign travel of its director and on medical treatment of one of its directors. The entire expenses were disallowed by the IAC (Assessment). The appeal preferred before the Commissioner (Appeals), was dismissed. On…

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