Reference on business expenditure for foreign travel tied to medical treatment was directed for High Court opinion.

A question of law was found to arise from the Tribunal's treatment of expenditure on a director's foreign tour, including his wife's travel, incurred in connection with the director's medical treatment and claimed as business expenditure. The High Court considered the issue fit for reference because it concerned whether such outlay was allowable as a deduction under the Income-tax Act. The application under section 256(2) was allowed, and the Tribunal was directed to state the case and refer the question of law for the High Court's opinion.

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Issues: Whether a question of law arose from the Tribunal's order so as to warrant a reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The application was filed seeking a reference on the correctness of the Tribunal's view that the expenditure on the foreign tour of the director and his wife, incurred in connection with the director's medical treatment, constituted business expenditure and was allowable as a deduction. The Court found that this question did arise from the Tribunal's order and was fit to be referred for opinion.

Conclusion: The application under section 256(2) was allowed and the Tribunal was directed to state the case and refer the question of law to the High Court.

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