JUDGMENT :

Hidayatullah, J.

1. This is an appeal on a certificate of fitness under Section 66-A(2) of the Indian Income Tax Act by the High Court of Bombay against its judgment dated October l, 1958. The appellant is the Commissioner of Income Tax, Bombay, and the respondent, Messrs Shoorji Vallabhdas and Co. (referred to hereinafter as the "assessee Firm").

2. We are concerned with the Assessment Year, 1948-49, corresponding to the previous year ending March 31, 1948. The Assessee-firm consisted of three partners, Shoorji Vallabhdas and his two sons, Pratapsinh and Vikramsinh. The assessee firm was the managing agents of several Shipping Companies including the Malabar Steamship Co. Ltd., and the New Dholera Steamships Ltd. With the Malabar Steamship Co. Ltd., "the assessee Firm had entered into an agreement on September 16, 1938 (modified on December 7, 1943) and with the New Dholera Steamships Ltd. on June 8, 1946. Under these agreements, the assessee firm was entitled to receive as its commission, 10 per cent of the freight charged. Between April 1, 1947 and December 31, 1947, the amount of commission at the rate of 10 per cent of the freight was Rs 1,71,885 from the Malabar Stea