( 1 ) THESE two references arise out of the assessment of the same assessee Messrs. Inderchand Hari ram, Gorakhpur, in respect of two different assessment years, viz. , 1940-41 and 1941-42. Since the question, that arose, was common to both the references, the Income-tax Appellate Tribunal, allahabad, made one consolidated order of reference and, by it, referred the following question to this Court for opinion:

"whether, in the circumstances of the case, the income derived by the applicant firm both as managing and Sole Agents of Messrs. Shankar Sugar Mills, Limited, Captainganj, Gorakhpur, was rightly assessed under Section 10 or whether the income is assessable under Section 7 of the indian Income-tax Act?"

( 2 ) THE facts relating to these references, as given in the statement of the case, are that the assessee is a firm registered under the Indian Partnership Act, having come into existence through a deed of partnership which mentioned that it was being constituted with a view to floating a private limited company to be called the Shankar Sugar Mills, Limited with a capital of 13 lacs out of which a sum of 12 lacs of rupees was to be subscribed by the partners ac