HARRIES, C. J.

1. THIS is a reference under s. 66(1) of the Indian IT Act, made by the Tribunal, Madras Bench, in which the following question is propounded for the opinion of this Court :

" Whether in the facts and circumstances of the case, the income in question, viz., Rs. 2,000, was rightly treated as the income from business for excess profits tax purposes ? "

2. THE facts giving rise to this litigation may be shortly stated as follows : THE assessees are a limited liability company carrying on business as manufacturers of jute products. THE assessees had let a portion of their business premises to a firm known as Radha Kant and Co. who were conducting the business of dehydrating potatoes. THE assessees claimed that the rent payable by Radha Kant and Co. had not been fixed and that there was a dispute concerning it. Hence their return did not show any rent received in respect of this letting. THE ITO did not accept this contention and estimated the income from this letting for ten months of the assessable year at Rs. 2,000. This amount was added to the income of the company for the purpose of assessing excess profits tax. THE assessee company appealed to the AAC from the