Judgment

KHANNA, J. :- These three appeals on certificate by the Commissioner of Income-tax are against the judgment of the Allahabad High Court* whereby the High Court answered the following 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 assessee-respondent and against the revenue.

* (1970) 76 ITR 201 (All).

"Whether in the facts and circumstances of the case, the assessee is entitled for each of the years under consideration to the exclusion from the income under the head property of an amount equal to the irrecoverable rent of the Grant Hotel property for oneyear which has not been so excluded in the preceding assessments?"

2. The matter relates to the assessment years 1957-58, 1958-59 and 1959-60. The assessee is the owner of a building known as Grand Hotel in Civil Lines Delhi. The income from this building was assessed from year to year under S. 9 of the Act as income from property. Subsequently there was a dispute between the assessee and her tenant. Protracted litigation followed and ultimately a compromise was reached between the assessee and the tenant as per compromise, deeds dated December