1. The above mentioned four references relate to the assessment years 1962-63, 1963-64, 1965-66 and 1966-67, respectively. As identical questions of law arise in all the four cases, the same are disposed of by one single order.

2. Briefly stated, the facts of the case as mentioned in the statement of the case are that Shri Pannalal Kothari, hereinafter referred to as " the assessee ", was working as the managing director of M/s. Mahalaxmi Cotton Mills, Beawar (hereinafter referred to as " the company "), during the relevant assessment years. He was appointed as managing director of the company by an agreement on May 7, 1960, for a period of five years, vide the resolutions of the board of directors of the said company. It was resolved in the resolutions that " the company should engage and employ Shri Pannalal Kothari as managing director who should serve the said company on the said terms and conditions herein set forth ........ "

3. According to clause (1) of the agreement, it was provided that the company shall employ Seth Pannalal as its managing director who shall serve and act as manager of the said company for a period of five years on a remuneration of Rs. 2,000 per