( 1 ) THIS reference under Section 66 (1) of the Indian Income-tax Act, 1922, is at the instance of the Commissioner of Income-tax, West Bengal-II, and arises out of the assessment of Longview Tea Company Ltd. , the assessee, for the assessment year 1961-62, the relevant accounting period being the calendar year ending on the 31st December, 1960.

( 2 ) THE facts found and/or admitted in the proceedings below are as follows : In the assessment year in question the assessee claimed a deduction in respect of a sum of Rs. 37,835 on account of staff and labour bonus. The Income-tax Officer disallowed the claim on the ground that this provision had not been made pursuant to any agreement entered into or any award passed during the year. On appeal, the Appellate Assistant Com missioner by following the judgment of the Supreme Court in Commissioner of Income-tax v. Swadeshi Cotton and Flour Mills P. Ltd. [1964] 53 ITR 134 upheld the decision of the Income-tax Officer.

( 3 ) THERE was a further appeal by the assessee to the Income-tax Appellate Tribunal. The Tribunal did not agree with the view taken by the Appellate Assistant Commissioner and disposed of the matter with the foll