( 1 ) THIS is a reference Under Section. 66 (1), Income Tax Act. On an application, by the Commissioner of Income Tax Calcutta, the following question of law has been formulated by the Tribunal for answer by this Court. "whether in the circumstances of the case a sum of Rs. 6698/- paid out to Mr. Mitchell-Innes. wholly and exclusively for the purposes of the business was a revenue expenditure so as to-be allowable as an admissible deduction under Section 10 (2) (XII), Income Tax Act (as it stood, before its amendment in 1946 ). "

( 2 ) MESSRS. Piggot Chapman and Co. is a firm of exchange brokers Mr. Mitchell-Innes and Mr. Danbeny who were working in partnership as exchange brokers, under the name and style of Halford Smith and Co. entered into ah agreement on 22-10-1919 with the partners of the assessee-firm Piggot Chapman and Co. It is not necessary for our present purpose to state in full the terms of this agreement. Broadly speaking Messrs. Mitchell-Innes and Danbeny who were the sole exchange brokers of Messrs. Ralli Brothers were under this agreement to sell their goodwill and the business of exchange brokers with the stipulation that they would not carry