THIAGARAJA CHETTIAR AND CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a registered partnership firm which under a managing agency agreement dated 14th March, 1945, carried on a business as the managing agents of Sri Meenakshi Mills Limited. Under this agreement, the assessee was entitled to an allowance of Rs. 1,000 per mensem and 5% of the annual profits of the company. THE mills had branches at Usilampatti and Pudukottah. THE present reference is confined to the percentage of profits which the assessee became entitled to in respect of these two branches only.

(2.) ON the application of the assessee under section 66 (1) of the Act, the Tribunal referred the following question for the decision of this court :

(3.) WE are accordingly of the view that the decision of the department and the Tribunal on this question is correct. The question referred to us is therefore answered in the affirmative and against the assessee, who will pay the costs of the department. Counsels fee Rs. 250.