1. This is a reference under Section 66(2) of the Indian Income-tax Act, 1922. The assessment year involved is 1957-58.

2. The dispute relates to an aggregate amount of Rs. 18,295 made up of the following three items :

Rs.

(a) Claims and refund 11,366

(b) Insurance payable 4,778

(e) Boboins Bills issued 2,151

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18,295

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The assessee's case was that in its capacity as a clearing and forwarding agent, he had to pay customs, export and import duties, etc., on behalf of its constituents and for this purpose a running account of the customs authorities was maintained by him to whom amounts were advanced from time to time in lump sums as and when the customs documents were presented to the assessee, the respective amount was debited to the constituents by giving a corresponding credit to the customs authorities. The amount was later on realised from the constituent by giving corresponding credit to the respective constituents. Some time it so happened that the duties and charges on a particular consignment were charged by the customs authorities in excess and for such amounts the assessee made a claim on behalf of the constituents. As