Judgment

KHANNA, J. :- This appeal on certificate granted by the Bombay High Court is directed against the judgment of the Court whereby it answered the question referred to it under Section 66 (1) of the Indian Income Tax Act, 1922 (hereinafter referred to as the Act) in favour of the respondent assessee.

2. The reference arose out of the assessment made upon the respondent firm for the assessment year 1951-52, the account year for which is the Samvat year 2006 (that is, October 22, 1949 to November 9, 1950). The respondent was carrying on business for several years in the past in timber under the name and style of Manna Ramji & Co. in Bhavani Peth Poona City. The business premises consisted of an office and six sheds used for storing wood and timber of all kinds. The respondent firm constructed the six sheds for the purpose of its business after taking the site threof on a long lease. On May 19, 1944 the Collector of Poona requisitioned the premises of the respondent under the Defence of India Act as from May 19, 1944 for the purpose of using them as store houses for food grains. Initially the requisition order covered the six sheds as well as the office of the respondent, but at t