Deb, J. - (1.) Common questions of law and facts are involved in these two references under the Income-tax Act, 1961. The question referred to this court in Income-tax Reference No. 156 of 1969 is as follows : "Whether, on the facts and in the circumstances of the case, the sums of Rs. 95,421, Rs. 1,00,564 and Rs. 1,17,969 disallowed by the Income-tax Officer out of the total contributions made by the assessee towards the provident fund were allowable under Section 36(l)(iv) of the Income-tax Act, 1961, for the assessment years 1962-63, 1963-64 and 1964-65, respectively ?"
(2.) The question called for by the court in Income-tax References Nos. 398, 399 and 400 of 1969 runs thus : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provident fund maintained by the assessee satisfied the condition laid down in Rule 4(c) of the Fourth Schedule, Part 'A', of the Income-tax Act, 1961 ?"
(3.) The assessee is a private limited company. The company is a manufacturer and seller of duplicating machines and accessories. It had different categories of salesmen in its regular employment. Besides paying salary, the company paid commission to its salesmen in terms of the contract with them. The commission varied both as to rates and different classes of sales inter se the different categories of salesmen. The company maintained a regular provident fund which was recognised by the Commissioner of Income-tax in 1937 and such recognition was in force during the relevant years.;