Deb, J. - (1.) This is a reference under Section 256(1) of the I.T. Act, 1961, and the questions are as follows : " 1. Whether, on the facts and in the circumstances of the case and on a proper construction of the agreement dated 31st December, 1960, the Tribunal was right in holding that the impugned payment of Rs. 53,000 was an item of revenue expenditure deductible in computing the assessee's income from business ?
(2.) Whether, on the facts and in the circumstances of the case and on a proper construction of the agreement dated 31st December, 1960, the Tribunal was right in holding that the payment to M/s. RIG by way of royalty (Rs. 62,600) and the expenditure incurred by the assessee for payment of remuneration and travelling expenses for the German technicians were items of revenue expenditure deductible in computing the assessee's income from business ? " 2. The statement of the case relates to the assessment year 1962-63, the relevant previous year being the calendar year 1961.
(3.) The assessee is a company. It is engaged in the manufacture, inter alia, of low and high tension porcelain insulators.;