Judgment

S. K. Das, J. : This is an appeal on a certificate of fitness granted by the High Court of Bombay under S. 66-A(2) of the Indian Income-tax Act, 1922.

2. The relevant facts lie within a narrow compass. The Commissioner of Income-tax Bombay is the appellant before us and the assessee, E. D. Sheppard, is the respondent. Killick Nixon and Company was a partnership concern carrying on business on a fairly large scale in India. It owned various mills and managing agencies of a number of limited companies. This partnership firm used to employ officer-assistants, mostly Europeans, on the basis of a contract for three years; if the services of the assistants so employed were found satisfactory, extensions were invariably given after every three years on increased salary. Subject to their work being satisfactory, the assistants so employed expected to become partners of the firm one day. The assessee was one of such assistants who joined the firm in 1930. The original contract relating to the assessee s employment was not placed on record. What was placed on record as a specimen copy of the initial agreement, was the contract with one W. J. Heygate. It was undisputed that the terms o