( 1 ) THE following question of law has been referred to this court by the Tribunal under Section 256 (1) of the Income-tax Act, 1961, for the assessment year 1984-85 : r. A. No. 279 (Cat) of 1990 :"whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the assessee's expenditure on commission paid to sales agents amounting to Rs. 1,57,65,878 and that paid to advertisement agents amounting to Rs. 1,53,88,321 are not covered by the provisions of Section 37 (3a) read with Section 37 (3b) of the Income-tax Act, 1961, in vacating the order of the Commissioner of Income-tax under Section 263 of the Income-tax Act, 1961 ?"

( 2 ) SHORTLY stated, the facts are that the assessee-company is the owner of a well-known newspaper "the Statesman". In its return for the assessment year 1984-85, it claimed deductions of Rs. 1,57,65,878 and Rs. 1,53,88,321 as commission paid to sales agents and advertisement agents, respectively. The above deductions were allowed to the assessee by the Assessing Officer in the assessment made by order dated January 28, 1986. The Commissioner, on examination of the record of the proceeding, w