KAPADIA K D Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee was doing business in copper bars. He imported two consignments of copper bars from the United States of America. The value thereof was U. S. dollars 35,411. They were shipped by the vessel "Steel Vendor". It sailed via Karachi and the copper bars were, in September, 1965, seized by the Pakistani authorities due to the hostilities then current between Pakistan and India as being articles destined for an enemy port.

(2.) THE assessee had paid sums of Rs. 1,59,449 in September and November, 1965, and a further sum of Rs. 25,000 in April, 1966, towards the price of the copper bars. The amounts which had originally been debited to a bank deposit account were, upon the seizure as aforesaid, transferred to an insurance claim account and the assessee lodged a claim with the insurers of the copper bars. After negotiations, the assessee received from the insurers, in full satisfaction of the claim, an amount of Rs. 2,92,433. The amount was received after June 6, 1966, when the rupee had been devalued.

(3.) OUT of the judgment of the Tribunal, the following question is referred :