( 1 ) THIS is a reference under Section 66 (2) of the Indian I. T. Act, 1922, for the assessment year 1954-55, the previous year ending on 31st March, 1954.

( 2 ) THE assessee is the managing director of Surrendra (Overseas) Pvt. Ltd. for life and of Amin Chand Pyarelal (Calcutta) Ltd. for 20 years. Since his remuneration as the managing director of these two companies has been taxed under the head "salary" and as the appellate authorities have sustained it, we are now concerned with the following questions of law :"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 31,142 being the managing director's remuneration is taxable under Section 7 of the Indian I. T. Act, 1922? 2. Whether, on the facts and in the circumstances of the case, the managing director's remuneration was properly included in the income of the assessee during the relevant year ? "

( 3 ) IT may be noted here that the learned counsel appearing for both the parties ultimately agreed that our answer to question No. 2 should abide by our answer to question No. 1 and accordingly we have dealt with their arguments only on question No. 1 and have