JUDGMENT

PATHAK, J. :— This appeal by certificate granted by the High Court at Calcutta under S. 66-A (2) of the Indian Income-tax Act, 1922 is directed against the judgment dated Aug. 5, 1971 of that High Court disposing of an income-tax reference.

2. The respondent assessee is a registered firm and owns several Collieries in West Bengal and Bihar. One of the collieries is known as the South Samla Colliery. The South Samla colliery was under military occupation from 1942 and was released in 1955. During the period of military occupation the assesse incurred expenditure on account of minimum royalty payable in respect of the colliery, the surface rent and salaries for the watch and ward employees. The expenditure was allowed in income-tax proceedings as a business expenditure. After the 641 colliery was released by the military, the assessee incurred a further expenditure amounting to Rs. 1,61,742/- on the colliery with a view to resuming mining operations. The expenditure was incurred during the previous year beginning Oct. 24, 1957 and ending Nov. 11, 1958 relevant to the assessment year 1959-60. In the assessment proceedings for that assessment year the assessee claimed a deducti