Judgement

Appeal (No. 27 of 1941) from a judgment of the High Court (October 17, 1939) upon a reference made under s. 66, sub-s. 2, of the Indian Income-tax Act, 1922.

Law. Rep. 69 Ind. App. 15 ( 1941- 1942) Commissioner of I.T., Bihar and Orissa v. Maharajadhiraj

79

The following facts are taken from the judgment of the Judicial Committee. In connection with the assessment of the profits and gains of his business as a moneylender for the year 1931- 1932 the respondent claimed the deduction of Rs.2,07,018, expended in the year of account, as an allowance admissible under s. 10, sub-s. 2 (ix.), of the Indian Income-tax Act, 1922. The respondents claim was rejected by the Income-tax Officer, the Assistant Commissioner of Income-tax, and the Commissioner of Income-tax, the last of whom, at the request of the respondent, made a reference under s. 66, sub-s. 2, of the Act to the High Court of Judicature at Patna, which decided the reference in favour of the respondent by a judgment against which the present appeal has been taken by the appellant.

The relevant provisions of s. 10 of the Act are as follows " 10.—(1.) The tax shall be payable by an assessee under the "head Business in resp