( 1 ) IN this reference under Section 66 (1) of the Indian Income-tax Act, 1922, the question before the court is :"whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the entire payment of selling agency commission was not an allowable deduction in computing the income from business but only a portion thereof was allowable for the assessment years 1960-61 and 1961-62 under the Indian Income-tax Act, 1922 ?"

( 2 ) THE reference is at the instance of M/s. J. K. Steel and Industries Ltd. , Calcutta, the assessee. The assessment years involved are 1960-61 and 1961-62, the relevant previous years ending on the 30th June, 1959, and 30th June, 1960, respectively.

( 3 ) THE facts found or admitted are that the assessee is a public limited company and carries on the business of manufacture of jute bailing, hoops, steel wire ropes and box strapping. The assessee was incorporated on the 13th October, 1953, and by a resolution dated the 13th November, 1953, it appointed one J. K. Alloys Ltd. as its sole selling agent for a term of five years, In the assessment years involved in this reference the said J. K. Alloys Ltd. cease