COMMISSIONER OF INCOME TAX CENTRAL Vs. SOORAJMULL NAGARMULL

JUDGEMENT

(1.) In this reference the assessee was not represented before us. In order to determine this reference properly we requested Mr. R.N. Dutta to help us and appear as amicus curiae. Pursuant to our request he has appeared and made his submissions to this court. We express our gratitude for the help he has rendered.

(2.) In this reference for the assessment year 1956-57, the following two questions have been referred to us :

(3.) It has been contended by the assessee that such contracts were entered into in order to arrange for foreign exchange for importing goods in his import departments (lubricating oils & machinary). Only a part (55,000) of one of the contracts (for 1,00,000) was utilised by the assessee for importing goods. The balance of this contract and all other contracts were settled by the assessee otherwise than by actual delivery. The assessee has not been able to produce any evidence to prove that such contracts were obviously of a speculative nature. Moreover, the payments do not relate to transactions of the a/c. year and hence, cannot be charged against profits of this year. The claim is, therefore, disallowed. "