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JUDGMENT P.B. Mukharji, J.-The question asked on this income-tax reference is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 1,56,806 was wholly and exclusively laid out for the purpose of business and as such allowable as a business expenditure? " The assessee is the Aluminium Corporation of India Ltd. of 7, Council House Street, Calcutta. The statement of the case relates to the assessment year 1955-56, the corresponding previous year being the financial year ended on March 31, 1955. By an agreement dated December 30, 1949, the assessee appointed Messrs. J.K. Alloys Ltd. as the sole selling agent for selling its aluminium products. The agreement was effected for a period of 5 years from April 1, 1950. Under the terms of the agreement the selling agents were to receive the commission on all sales either effected by the agents themselves or by the principals directly. Clause 6 of the agreement states as follows: "That the principal will allow the agents discount in the manner indicated hereunder on sale of all products of the principal effected by the agents either by themselves or through sub-agents appointed by them or directly by the principal themselves". Then follows specific items like ingots, sheets and circles, expanded metal, utensils and anodised and alloy goods, shots-all made of aluminium -with different rates of discount written against each item. In the relevant year of account a sum of Rs. 1,56,806 was paid by the assessee to J.K. Alloys Ltd. as selling agents in terms of the above agreement. The whole question now turns upon this sum of Rs. 1,56,806. The Income-tax Officer disallowed the claim for deduction of the amount on the ground that the payment had not been made on business consideration. He came to certain significant findings of facts. They are in the language of the order of the Income-tax Officer as follows: "It is stated that M/s. J.K. Alloys Ltd. are sole selling agents of company's products. Selling agency commission is paid to M/s. J.K. Alloys Ltd. because the assessee gets expert opinion in regard to marketing of its manufactured articles from the…

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