Judgment

HEGDE J.- This is an assessee s appeal by certificate. The concerned assessment year is 1952-53 and the relevant accounting year is the year ended on 31st March, 1952.

2. From the statement of the case submitted by the Income-tax Appellate Tribunal A Bench, Calcutta to the High Court of Calcutta under Section 66 (2) of the Indian Income-tax Act, 1922 (in short the Act"), the following facts are available,

3. The assessee is a private limited Company (which will hereinafter be referred to as the company). It was functioning as the managing agents of 27 companies including M/s. Greaves Cotton & Co. Ltd. M/s. Greaves Cotton Co. Ltd., was incorporated as a private company in about 1922 and its managing agents was the firm styled Messrs Greaves Cotton & Co. The company acquired a large block of shares in the managing agency company. M/s. Greaves Cotton Co. released their managing agency rights in favour of the company on receiving Rs. 27.34,325/-. On May 8, 1950, the managed company viz. M/s, Greaves Cotton & Co. Ltd. was converted into a public company. There after the company was not entitled to any commission on sales etc., in view of the provisions of the Indian Companies A