Judgment

HIDAYATULLAH J. : The Indian Molasses Co. (Private Ltd., Calcutta, (hereinafter called the assessee Company) have brought this appeal, with the special leave of this Court granted on 9-11-1956, against the judgment of the High Court of Calcutta dated 21-12-1955, in Income-tax Reference No. 15 of 1954. The question of law referred to the High Court was:

"Whether on the facts and in the circumstances of the case, and on a true construction of the Trust Deed, dated 16-9-1948, and the Policy dated 13-1-1949, the payments made by the assessee Company and referred to in paragraph 4 above constitute expenditure within the meaning of that word in S. 10 (2) (xv) of the Indian Income-tax Act, 1922, in respect of which a claim for deduction can be made, subject to the other conditions mentioned in that clause being satisfied."

The question was answered in the negative.

2. The facts of the case are as follows: One John Bruce Richard Harvey was the managing Director of the assessee Company in 1948. He had by then served the Company for 13 years, and was due to retire at the age of 55 years on 20-9-1955. There was it appears, an agreement by which the Company was under an obligation to pr