COMMISSIONER OF INCOME TAX Vs. BASUMAL JAGAT NARAIN

JUDGEMENT

(1.) BY this application under section 66(2) of the Indian Income-tax Act the Commissioner of Income-tax wishes this court to require the Appellate Tribunal to state the case and to refer to it certain questions of law which are said to arise from the order of the Tribunal.

(2.) THE Income-tax Officer disallowed these claims primarily on the ground that they were capital losses. THE Appellate Assistant Commissioner was unable to endorse the view and held that one-third of the claim for deductions was allowable in the assessment for 1948-49 and 1/3rd in the assessment for 1949-50. THE Appellate Tribunal allowed the appeal of the assessee with the remark that the assessees claim falls within the terms of section 10(2)(xi) and that the sums of Rs. 1,00,714 and Rs. 2,25,000 should be allowed as proper deductions for the assessment year 1948-49. THE Appellate Tribunal held, as stated above, that both these amounts had become irrecoverable in the account year relevant to assessment year 1948-49 and allowed both these items as deductions in connection with the assessment for the year 1948-49.