COMMISSIONER OF INCOME TAX MADHYA PRADESH NAGPUR AND BHANDARA NAGPUR Vs. SWADESHI COTTON AND FLOUR MILLS PRIVATE LTD

JUDGEMENT

(1.) The respondent, Swadeshi Cotton and Flour Mills, hereinafter referred to as the assessee, is a limited company which owns and runs a textile mill at Indore. For the assessment year 1950-51 (accounting year, calendar year 1949), which was its first year of assessment under the Indian Income-tax Act, 1922 (hereinafter referred to as the Act) it claimed that under S. 10(2) (x) of the Act it was entitled to an allowance in respect of the sum of Rs. 1,08,325/- which it had paid as bonus for the year 1947 in the calendar year 1949, as a result of the award of the Industrial Tribunal dated January 13, 1949. The claim of the assessee was not accepted by the Income-tax authorities. The Appellate Tribunal held that it was a liability relating to an earlier year and not the year 1949. However, on an application by the assessee it stated a case and referred two questions. We are concerned only with one which reads thus:

(2.) The High Court of Madhya Pradesh answered the question in the affirmative. The appellant, having failed to get a certificate under S. 66A(2) of the Act, obtained special leave from this Court, and that is how the appeal is before us.

(3.) The facts and circumstances referred to in the question have been set out in the statement of the case. Unfortunately, the facts are meagre, but since the appellant is content to base his case on a few facts, which will be referred to shortly, it is not necessary to call for a further statement of the case.