Judgment

BHAGWATI J.: These appeals arise out of two judgments and orders of the High Court of Judicature of Bombay in Income-tax Reference Nos. 23, 24, and 27 of 1951 made by the Income-tax Appellate Tribunal under Section 66 (1) of the Indian Income-tax Act and Section 21 of the Excess Profits Tax Act.

2. E. D. Sassoon and Company Ltd. (hereinafter referred to as the Sassoons ) were the Managing Agents of (1) E. D. Sassoon United Mills Ltd. under agreements dated the 14th February 1920 and the 2nd October 1934, (2) Elphinstone Spinning and Weaving Mills Company Ltd. under the agreement dated 23rd May 1922 and (3) Apollo Mills Ltd. under the agreement dated the 23rd May 1922. Sassoons agreed to transfer their managing agencies of the said companies to Messrs Agarwal and C., Chidambaram Mulraj & Co. Ltd. and Rajputana Textile (Agencies) Ltd. respectively by letters dated the 3rd September 1943, 16 April 1943 and the 27th April 1943.

The consent of the share-holders of the respective companies to the agreements for transfer was duly obtained and the Managing Agencies were ultimately transferred to the respective transferees with effect from the 1st December 1943; 1st June 1943 and 1st