Malik, C.J. - (1.) In this reference under Section 21, Excess Profits Tax Act, read with Section 66 (1). Income-tax Act, the following question has been referred to this Court for decision: "Whether on the facts and in the circumstances of the case mentioned wholly or partly income from Laxmi Ratan Cotton Mills Ltd., could be held to be profits from business within the meaning of Section 2 (5) of the E.P.T. Act?"
(2.) The assessee is Lala Jeewan Lal Dalal of Generalganj, Kanpur, who is being assessed in the status of an individual. The relevant, assessment year is 1946-47 and the chargeable account period is from 1-4-1945 to 31-3-1946. The assessee apart from other income showed in his return an amount of Rs. 1,27,147/- as remuneration from Laxmi Ratan Cotton Mills Ltd., Kanpur, at 1 per cent on sales and claimed it under the head 'salary'. The Excess Profits Tax Officer, on the other hand, claimed that the amount was income from business for which Excess Profits Tax was payable.
(3.) The question referred to us relates to this sum of Rs. 1,27,147/- and we have been asked to decide whether on the facts and in the circumstances of the case it would be held to be profits from business as defined in Section 2 (5), Excess Profits Tax Act.;