Harnam Singh, J.

1. In Civil Reference No. 7 of 1950 the question that has been referred to the Full Bench for decision reads:

"Whether in view of the managing agency agreement read with Article 83 of the Articles of Association as altered in pursuance of resolutions Nos. I and 3 of the resolutions passed at the Extra-ordinary General Meeting on 17-10-1943, and the provisions of Section 87C, Companies Act, the Tribunal was right in directing that excess profits tax fell to be deducted before arriving at the net profit upon which a fixed percentage was allowed as managing agents commission."

2. On 9-4-1936, the managing agency agreement, Annexure C was made between the "Western Hosiery and General Mills, Limited, Delhi, hereinafter referred to as the assessee company, and Messrs. Sohan Lal and Company, hereinafter referred to as the managing agents.

3. By Clause 2 of the agreement, Annexure C, the remuneration of the managing agents was fixed. That provision has been altered and it is common ground between the parties that for the assessment year 1946-47 managing agents are to be paid remuneration in accordance with the provisions of revised Article 83 of the Articles of Ass