Judgement

Appeal (No. 68 of 1932) from a judgment of the High Court (July 10, 1931) upon a reference to that Court under s. 66 of the Indian Income-tax Act, 1922.

The respondents, a joint Hindu family, had been assessed to tax for the year 1928- 1930 under the Indian Income-tax Act, 1922, in respect of the income, profits and gains derived by them from (inter alia) buildings erected by them upon land leased to them. They had not appealed from the decision of the High Court that the assessment in question was properly made under s. 12 (" Other sources"), not

s. 9 ("Property"), nor s. 10 ("Business"). The only question arising upon the present appeal by the Commissioner was whether the respondents were entitled under s. 12, sub-s. 2, to an allowance in respect of expenditure incurred by them before April 1, 1928, in erecting the buildings.

The terms of the reference to the High Court, and the facts of the case, together with the terms of the material provisions of the Act, appear from the judgment of the Judicial Committee.

The learned judges of the High Court (Mukerji and Allen JJ.) were of opinion that as the assessee would lose the advantage of his expenditure upon erecting the bu