( 1 ) IN this reference under Section 66 (1) of the Indian Income-tax Act, 1922, the assessment year involved is 1961-62. The previous year ended on July 31, 1960. The assessee is a company. The facts stated and found by the Tribunal are briefly as follows: The company maintains its books in the mercantile system of accounting. It deals in various types of machinery! By an agreement dated September 1, 1946, the company appointed one Khazan Singh Anand as its sole selling agent for Delhi, U. P. and Bihar. The company disputed its liability to pay commission and remuneration as claimed by the selling agent and the said dispute was referred to the arbitration of the Bengal Chamber of Commerce in terms of the arbitration clause contained in the agreement. Thereafter, the agreement was terminated by the company on July 31, 1951. An award was made against the company on March 14, 1960, for Rs. 1,05,285. 43 with interest thereon at 5 1/2% from January 19, 1959, up to the date of the award. The company then transferred a part of the said interest to the interest account of the earlier year, and Rs. 1,08,370. 55 as the principal sum and the balance interest to the profit and loss a