COMMISSIONER OF INCOME TAX Vs. ASHWANI KUMAR LILADHAR

JUDGEMENT

(1.) HEARD Sri A. N. Mahajan, for the assessee, and Sri S. Srivastava, for the Revenue.

(2.) FOR the opinion of this court the following questions of law have been referred :

(3.) THE Appellate Assistant Commissioner dismissed the appeal filed by the assessee. THE Appellate Tribunal, however, held that Sri Somani was not a partner but was merely an employee of the assessee and in lieu of fixed salary he was entitled to 40 per cent. profits in the iron and steel business, and even though the assessee-firm did not pursue the matter further by filing a criminal complaint, the amount embezzled by Sri Somani was irrecoverable and accordingly the Tribunal allowed the assessee's claim of deduction.