C. S. P. SINGH, J.

( 1 ) THE Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, has referred the following question of law for our opinion :

"whether, on the facts and in the circumstances of the case, the Tribunal was correct in allowing the sum of Rs. 32,660 on account of infringement commission in the accounting period relevant to the assessment year 1972-73?"

( 2 ) THE assessee is a private limited company. It is a dealer of Standard Cars, Tractors, Rajdoot motor Cycles, Scooters and spare parts, etc. In the previous year relevant to the assessment year 1972-73, the assessee had supplied 42 tractors to the Public Works Department. The Public works Department, in turn, distributed these tractors to various districts. Its principal, M/s. Escorts Ltd. , required the assessee to pay infringement commission on the sale of these tractors to its various dealers outside Lucknow as, according to M/s. Escorts Ltd. , whose agent the assessee was, the dealers in other districts were entitled to commission on the sale of these tractors. A demand at the rate of Rs. 930 per tractor was made by M/s. Escorts Ltd. , but the dealer did not agree to this. Subsequently by letter dated May 11,

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