JUDGMENT

Rankin, C.J. - In this case, the Commissioner of income tax. Bengal, has stated to this Court for its opinion the question whether a certain sum, Rs. 2 1/4 lakhs, received by the assessees is exempt from taxation u/s 4, Sub-section 3, Clause 7, income tax Act, 1922. The sum in question is a sum which was voted to the assessees by the shareholders of a company called the Cossipur Sugar works Ltd. It appears that that company was passing a resolution for voluntary winding up. A firm which had previously carried on the business now carried on by the assessees had been nominated by the Articles of Association of this company as their Managing Agents. No time was fixed throughout which they were to be the Managing Agents and no remuneration was settled for the office; but in point of fact, the firm and afterwards the company, namely, the present assessees acted as the Managing Agents and during certain years which are mentioned in the letter of Reference, received about half a lakh of rupees annually for their trouble. Now the business was coming to an end. The Cossipur Sugar works Ltd. was being wound up and the Resolution passed by the share holders was that an amount of 2 1/4