Judgment

SHAH, J. : R. D. Aggarwal and Company called for the sake of brevity the assessee s are a registered firm having their place of business at Amritsar in the State of Punjab. The assessees carry on business as importers and as commission agent of non-resident exporters with two if whom we are concerned in these appeals. These two nonresident exporters Comptoirs Lainiers Osterieth s.a. Anvers (Belgium) and Filature Tessitura Di Tollengno Beilla (Italy) are exporters and manufacturers of worsted woollen yarn. The assessee communicate orders canvassed by them from dealers in Amritsar to the non-residents for acceptance; if a contract results and price for the goods purchased is paid by the Amritsar dealer to the non-resident exporter, the assessee become entitled to commission varying between 1 1/2 and 2-1/2 per cent of the price.

2. By letter dated March 24, 1951 the assessees were appointed "sole agents" for the Italian Company "for sale" of worsted woollen yarns in the Indian territories terminable by one month s notice. The assessees had to "maintain the existing customers" and to secure new customers "conforming to their general terms of sales", and were to receive 2- 1/2 p