JUDGMENT

Sikri, J.-

1. These two appeals by special leave arise out of a reference made by the Income Tax Appellate Tribunal, Bambay Branch ‘A’ - hereinafter referred to as the Tribunal-referring to the High Court of Madhya Pradesh two questions of law, the questions being:

"(1) Whether in determining the 'smallness of profits' made by the applicant for the purpose of section 23-A, the Tribunal correctly included the commission of Rs. 41,842 and Rs. 11,690 in the applicant's profits of the accounting periods endeing 31st March 1952 and 31st March, 1953 respectively? and

(2) whether on the facts and in the circumstances of the case, the Tribunal was justified in upholding the orders under section 23-A" ?

2. The appellants, J. P. Srivastava and Sons (Bhopal) Private Limited hereinafter called the assessee company was at the relevant time the managing agents of New Bhopal Textile Ltd., hereinafter called the managed company. Both the assessee company and the managed company had the financial year as their accounting period. For the accounting period ending March 31, 1952 the assessee company was entitled to the managing agency commi3sion amounting to Rs. 41.842 under the agreement dated M