1 On 16-9-1955 we passed the following order:
ORDER
"This is a reference by the Income Tax Appellate Tribunal, Madras 'B' Bench, in compliance with a requisition under S.66(2) of the Indian Income Tax Act, 1922. The assessee is an unregistered firm consisting of five partners and carrying on business in cocoanut oil at Alleppey under the name and style of 'Swamy Brothers'.
The assessment concerned is the assessment for the year 1124 M.E. (accounting period 1123 M.E.). It was made under S.30(4) of the Travancore Income Tax Act, 1121, corresponding to S.23(4) of the Indian Income Tax Act, 1922; and the question that we have to determine is:
"Whether there was material for the Tribunal to reject the book results and estimate the income from cocoanut oil and empty tins in the manner it has done?"
"2. According to the assessee the business was nothing more than a commission agency business from which the firm derived a commission of 0.75 per cent. (12 annas per Rs. 100) of the turnover. The Income Tax Officer declined to accept this contention and held that the firm's business cannot be considered as a commission agency business, pure and simple, and estimated the gross profit at 2.75 per