Judgment

KAPUR, J. : These appeals by the assessee are brought against two judgments and orders of the High Court of Judicature at Patna in Income-tax references under S. 66 (2) of the Income-tax Act answering the questions in the negative and against the assessee. The questions were:

(1) "Whether on the facts and circumstances of this case Rs. 72,963-12-0 was a revenue expenditure deductible under section 10 (2) (iii) or under section 10 (2) (xv) of the Indian Income-tax Act ?"

(2) "Whether on the facts and circumstances of this case Rs. 76,526-1-3 was a revenue expenditure deductible under section 10 (2) (iii) or under section 10 (2) (xv) of the Indian Income-tax Act ?"

2. The facts of the appeals are these : The appellant was an employee of M/s. Karam Chand Thapar & Bros. and for each of the accounting years relating to the assessment years 1947-48 and 1948-49 his salary was Rs. 10,572/-. He also had an income of Rs. 500 from shares in certain joint stock companies. On December 20, 1945, he entered into a contract with Bengal Nagpur Coal Company Ltd. for raising coal from Bhaggatdih Colliery, Jharia and actually started his business from January 1, 1946. Evidently he did not have th