( 1 ) IN this reference under Section 256 (1) of the Income-tax Act, 1961, two questions have been referred to this court:" (1) Whether, on the facts and in the circumstances of the case, the sums of Rs. 59,330 and Rs. 20,060 are trading receipts assessable to tax in the hands of the assessee ? and (2) If the answer to the above question is in the affirmative, whether the assessee is entitled to have deduction in respect of the above amounts or otherwise towards its liability to sales tax in respect of the goods sold by it in auction sale ? "

( 2 ) THE reference relates to the assessment years 1962-63 and 1963-64, corresponding previous years being financial years 1961-62 and 1962-63, respectively.

( 3 ) THE assessee is a private limited company. It carries on, inter alia, auction business, being the business of auction of furniture, curios and other household goods belonging to others. In the said auction business the assessee received goods from the owners and stored the same in his auction room and sold these to the highest bidder in auction in consideration of commission from the owner of the goods. When the goods were sold to the highest bidder, the a