N. V. BALASUBRAMANIAN, J.

Pursuant to the direction given by this court in T. C. P. No. 5 of 1982, dated April 26, 1982, the Income-tax Appellate Tribunal, Madras, has stated a case and referred the following questions of law for the opinion of this court under section 256(2) of the Income-tax Act, 1961

"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the Income-tax Officer was not justified in disallowing a sum of Rs. 23, 293 being the commission paid to the retired partners while computing the income of the assessee-firm ?

2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's view that the commission of Rs. 23, 293 received by the firm was not the income of the assessee-firm as there was overriding title in respect of such commission is sustainable in law ?" *

The facts relating to the case are as under : The assessee is a registered firm carrying on wholesale business in paper. During the previous year relevant to the assessment year 1974-75, the assessee consisted of four partners including one minor, who were admitted to the benefits of the partnership. Before the fir