RAJAGOPALAN, J.

Two questions were referred under section 66(2) of the Income-tax Act in R.C. No. 97 of 1953 and four more under section 66(1) in R.C. No. 93 of 955. These questions arose out of proceedings to assess the Madura Knitting Company to income-tax and excess profits tax during the assessment years 1945-46, 1946-47, 1947-48 and 1948-49. Whether it was liable to income-tax or to excess profits tax, the factors for consideration were virtually the same with reference to each of two of the three items in dispute : (i) commissions paid by the assessee company to Krishnaram, Kamadhenu and Company and Sekhar and Company ; (ii) commissions paid to seven employees who held managerial posts. The third item in dispute was as regards the profits earned by the partnership concern known as Ambal Stores. The questions as framed and referred to this Court mixed up to some extent the three different heads of disputed liabilities, and we would prefer to discuss first the questions at issue between the assessee company and the Department, independent of the frame of the question The Madura Knitting Company consisted of seven partners, drawn from three family groups and each grou