DIPAK KUMAR SEN, J.

( 1 ) THIS reference under the I. T. Act, 1961, arises from the assessment of Messrs, Vishnu Agencies (P.) Ltd. , the assessee, in the assessment years 1963-64, 1964-65 and 1965-66, the relevant previous years having ended on the 31st January of the years 1963, 1964 and 1965, respectively.

( 2 ) DURING the relevant years, the assessee had engaged or employed a number of persons under different agreements in writing as follows :1. Agreement dated the 2nd February, 1959. This agreement was entered into by and between the assessee and one Mangilal Sethia whereby the assessee engaged the latter as its sole selling agent in respect of spun R. C. C. pipes and collars manufactured by the assessee on the following terms and conditions : (a) The agency would be effective on and from the 1st February, 1959. (b) The sole selling agent would deposit a sum of Rs. 10,000 to be held by the assessee without interest during the subsistence of the agreement. (c) The sole selling agent would not during his appointment purchase or receive for sale any commodity similar to those manufactured by the assessee from any third party in his own name or account or in the name or on accou

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