Judgment

KAPUR, J. : This is an appeal by special leave against the judgment and order of the High Court of Judicature at Calcutta in a reference made by the Income-tax Appellate Tribunal under S. 66(1) of the Income-tax Act. The following question was referred :

"Whether in the facts and circumstances of this case, the Appellate Tribunal was right in holding that Rs. 61,818 spend by the assessee to train Indian boys as jockeys, did not constitute expenses of the business of the assessee allowable under S. 10(2)(xv)?"

which was answered in favour of the respondent. The Commissioner is the appellant before us and the assessee is the respondent.

2. The respondent is an association of persons whose business is to hold race meetings in Calcutta on a commercial basis. It holds two series of race meetings during the two seasons of the year. The respondent does not own any horses and therefore does not employ jockeys but they are employed by owners and trainers of horses which are run in the races. It is a matter of some importance to the respondent that there should be jockeys available to the owners with sufficient skill and experience because the success of races to a considerable extent d