Judgment

TULZAPURKAR, J.:- These appeals, by certificates are directed against the common judgment and order rendered by the Calcutta High Court on Feb. 8, 1977 in Income Tax Reference No. 156 of 1969 and Income Tax References Nos. 398, 399 and 400 of 1969,* whereby the assessees claim for deduction under S. 36 (1) (iv) of the Indian Income-tax Act 1961 (hereinafter referred to as the Act) in respect of three sums of Rs. 95,421/-, Rs. 1,00,564/- and Rupees 1,17,969/- out of the total contributions made by the assessee to a recognised Provident Fund for the assessment years 1962-63, 1963-64 and 1964-65 respectively was disallowed and the principal question raised in these appeals is whether the expression "salary" as defined in Rule 2 (h) in Part A of the Fourth Schedule to the Act includes "commission" paid by the assessee to its salesmen in terms of their contracts of employment?

* Reported in 1977 Tax LR 828 (Cal)

2. The assessee is a private limited company and carries on the business of manufacture and sale of duplicating machines and accessories. It has in its regular employment three categories of salesmen - machine salesmen, mixed salesmen and supply salesmen. As a term of the