1. IN this reference under s. 66(1) of the IT Act 1922, the following two questions of law have been referred to us :

"1. Whether, on the facts and in the circumstances of the case, office allowance receivable by the company from the managed companies was income of the company for the year 1954-55 even though it was surrendered by a resolution passed before the end of the accounting period?

2.Whether, on the facts and in the circumstances of the case, managing agency commission and officer allowance received by the assessee-company from M. G. R. Iron and Steel Works Ltd. was income of the assessee-company for the asst. yr. 1954-55 even though it was surrendered by the assessee-company, just because the resolution surrendering the commission and the allowance was passed after the end of the accounting period?"

2. THESE questions have arisen under the following circumstances : The assessee is a private limited company managing other companies as managing agents and also doing business in minerals. The assessment year in question is 1954-55 and the corresponding previous year is 2010 Ratha Jatra ending on 11th July, 1953. The assessee-company was entitled to office allowance and