JUGGILAL KAMLAPAT Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under section 66(1) of the Income-tax Act. Two questions have been referred to us for opinion.

(2.) THE assessee is a firm registered under section 26A of the income-tax Act. THE case relates to the assessment year 1944-45. THE constitution of the firm is as follows : <FRM>JUDGEMENT_458_ITR49_1963Html1.htm</FRM>

(3.) BY a special resolution dated March 21, 1942, the managed company sanctioned the commission of 2 1/2% on the sales of the companys products to the assessee firm (annexure C&quot; to the statement of the case).