The partners of the firm were Popatlal Devram Jayantilal Jagmal Pragji Devram Ratilal Odhavji Rashiklal P Rathor Popatlal is Rashiklals father.
Rashkilal was Karta of a smaller HUF.
The firm claimed deduction of this amount from its income.
The assets of Rashiklal companytinued to be invested in the partnership firm.
On 1.4.1976, there was on oral partition of the share of Popatlal in the firm amongst Popatlal, his wife and his two sons including Rashiklal.
On 17.10.1978, there was an agreement between Rashiklal and the firm Rashiklal and Company that Rashiklal will receive 37 paise per tone of mineral sold by the firm.
28579/ as companymission.
The claim was negatived by the Income Tax Officer.
SEN, J. The following question of law was referred by the Tribunal to the Orissa High Court under Section 256 1 of the Income Tax Act, 1961 Whether on the facts and in the circumstances of the case, the companymission paid by the assessee firm to Sri Rashiklal P. Rathor individual is allowable under section 40 b of the Income Tax Act, 1961 as a deduction while companyputing the business income of the assesses.
