Judgment

SABYASACHI MUKHARJI, J:- These appeals arise out of the orders of the High Court of Karnataka dated 10th August 1973 for the assessment years 1959-60, 1960-61 and 1961-62 by certificate granted by the High Court under Section 66A(2) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act.

2. The assessee is an individual. He was carrying on business in the relevant assessment years in purchase and sale of groundnut oil and was also running an oil mill. He was also an abkari contractor. On 1st June, 1957, he had gifted away a part of the oil mill machinery, viz., a solvent extraction plant, to his wife and three minor children. A firm was constituted by the assessees wife and another person to the profits of which the three minor sons of the assessee were also admitted. The mill premises as well as the remaining machinery of the assessee were leased out to this firm which carried on the business of the manufacture and sale of groundnut oil. The assessee had also entered into an agreement with the firm under which certain services were rendered to the firm by way of management. The assessee was entitled to get commission at the stipulated rates On the purchase o