S.P.Mitra, J. - (1.) In this Reference under Section 66(1) of the Indian Income-tax Act, 1922, the assessee is a limited company, whose main business is transport of cargo from ships berthed at the Calcutta Port The assessment year is 1961-62. The relevant previous year ended on the 31st October, 1960. Messrs. K. C. Bose & Co., a firm of Chartered Accountants, were the assessee's tax consultants. The assessments for the years 1948-49 to 1952-53 were reopened under Section 34 (1) (a) of the Indian Income-tax Act, 1922. At that time the original assessments for the years 1953-54 to 1959-60 were also pending. The assessee agreed to pay Messrs. K. C. Bose & Co. consolidated fees at the rate of Rs. 2,000 for each assessment year for these twelve years for settling each year's assessment irrespective of the fact whether there was any appeal or not in respect of a particular year.
(2.) Out of the sum of Rs. 24,000, a sum of Rs. 8,000 was paid in the preceding year and was allowed by the Income-tax Officer as a deduction for the assessment years 1961-62; the assessee paid the balance of Rs. 16,000 and claimed the amount as a deduction under Section 10 (2) (xv) of the Act.
(3.) In respect of the assessments for the years 1948-49 to 1953-54 Messrs. K. C. Bose & Co., conducted the cases on behalf of the assessee before the Income-tax Officer, while the appeals before the Appellate Assistant Commissioner and the Tribunal were conducted by an Advocate of this Court to whom separate fees were paid.;