Judgment

HEGDE, J. :- This appeal by special leave arises from a decision of the Madras High Court in a reference under Section 66 (1) of the Indian Income-tax, Act, 1922 (to be hereinafter referred to as the Act). As demanded by the assessee the Tribunal submitted the statement of the case to the High Court seeking its opinion on the question "whether on the facts and in the circumstances of the case, the loss of Rs. 1,93,750/- was an allowable deduction under Section 10 of the Income-tax Act ?"

2. Material facts are these :

The assessee respondent was a member of a Hindu undivided family which carried on money lending business in India and abroad. In the course of such money lending business properties were taken over in settlement of debts as and when occasion arose. The family was disrupted on March 28, 1939. The assessee received some shares in some companies, properties and gardens and certain other items in Malaya. Even after the partition the assessee continued the money lending business in Malaya. During the war in general with others, the assessee suffered damages to these properties on account of Japanese bombing. This loss occurred on account of bombing in December, 1941,