GROVER, J.

1. This order will dispose of Income-tax References Nos. 278, 179 and 280 of 1959-60 in which the same questions are involved.

2. The assessee is a limited company and is a dealer in scrap iron. According to the control orders which were in force during the years under consideration (assessment years 1954-55, 1955-56 and 1956-57), the assessee was required to obtain licence for acquiring scrap iron from various mills. That iron could be sold by the assessment of selling scrap iron was to obtain from the permit holder the approximate quantity of scrap iron required by him and after finding out the weight, the calculation of the price of the quantity in round figures was made and the constituent was asked to deposit the amount so calculated by the assessee. The actual quantity of scrap iron which would, in fact, be supplied to the constitutent would be sometimes more or sometimes less that that for which the would be sometimes more or sometimes less than that for which the price had been calculated and for which the deposit had been obtained from the constituent. After the delivery of the scrap iron, it often happened that there remained a small surplus out of the