THE COMMISSIONER OF INCOME-TAX, DELHI vs THE DELHI FLOUR MILLS CO., LTD., DELHI

The Supreme Court held that the term 'net profits' in the managing agency agreement refers to divisible profits, which necessitates the deduction of excess profits tax when calculating the commission payable to managing agents. The Court affirmed that the commission should be based on profits after accounting for the excess profits tax, thus aligning with the interpretation of 'net profits' as divisible between the company and managing agents. The judgment clarified the computation of profits under the Excess Profits Tax Act, ensuring that the managing agents' commission is calculated correctly.