BANERJEE, J.

1. This reference, under s. 66(1) of the Indian IT Act, 1922, has been made under circumstances hereinafter related.

2. The assessee is a manufacture of motor cars and has a factory within the territorial limits of Kotrang Municipality. The location of the factory is a little distance away from the Grand Trunk Road. There is an approach road from the Grand Trunk Road to the factory premises of the assessee which road belongs to the Government of West Bengal. The said approach road fell into disrepair and began to cause transportation difficulties to the assessee. The Government was not prepared to meet the expenses for the repair of the road. Thereupon, the assessee offered to contribute a sum of Rs. 39,770, namely, the amount necessary for improvement of the said approach road. The offer was accepted by the Government. Thereafter, there was a formal written agreement dated August 14, 1959, made between the Government and the assessee under the terms whereof :

(1) the sum of Rs. 39,770 was to be spent for the improvement of the approach road and not for usual repairs; (2) in consideration of the sum being advanced by the assessee, Government would undertake to