RAY, J.

1. THE question referred to us is as follows :

"Whether on the facts and in the circumstances of this case and on a proper construction of the trust deed dt. 10th Feb., 1950, the payments by the assessee company constituted an expenditure within the meaning of s. 10(2)(xv) of the Indian IT Act in respect of which a claim for deduction could be made."

2. THE assessee-company appointed Gerald Joseph Feenan Hook as the manager of the assessee company. On 19th Nov., 1948, an agreement was entered into between the assessee and Hook, where it was agreed that the company would pay the manager a pension for life of 1,000 sterling per annum in London from 1st April, 1955, and in the event of his death provide a similar pension for his wife. By a deed of trust dt. 10th Feb., 1950, between Lloyds Bank Ltd., who were made the trustees, and the assessee company, a provision was made that the said Hook would be paid a pension for life and other benefits stipulated in the aforesaid agreement between Hook and the company. In order to provide for such pension the company undertook to pay annually the rupee equivalent of 2,546-13-0 until seven such annual payments inclusive of the ini