( 1 ) THIS reference under Section 256 (1) of the I. T. Act, 1961, arises out of 56 applications regarding assessments of T. I. and M. Sales Ltd. , hereinafter called the "indian company", treating it as an agent of a number of non-resident companies. Here we are concerned with eight companies, six of them have been described as "group A" companies, and two as "group B" companies. The Indian company had no direct agreement with the Group "a" companies but had dealings with them by virtue of an agreement with T. I. Export Ltd. , hereinafter referred to as the "export Company".

( 2 ) THE Group "b" companies are those with whom the Indian company had direct agreements. When the Tribunal heard the appeal, there were three Group B companies. We now have before us only two of them. The third company, viz. , M/s. Geo Tucker Eyelet Co. Ltd. , has been found by the Tribunal to be non-taxable in India and the Tribunal's decision is accepted by the Department. The Tribunal has also dealt with the consequences of the agreement with the Export company as well. But that does not form the subject-matter of the present reference.

( 3 ) LET us at the outset set out the