G.K. MITTER, J.

1. THE main question which arises on this reference is whether a payment made to the widow of the chairman of the board of directors of the assessee-company by way of compensation in view of the circumstances attending on the death of the said chairman was admissible as an expense under s. 10(2)(xv) of the Indian IT Act. Incidental thereto is another question as to whether the said payment was related as an expenditure to the year of account of the assessee relevant to the asst. yr. 1951-52.

2. THE facts are as follows: The assessee is a company which keeps accounts on the mercantile system according to the calender year. The assessment year in question is 1951-52, the corresponding accounting year being the calender year 1950. On 26th March, 1950, Mr. Cameron, the chairman of the board of directors of the assessee-company, lost his life by the action of a riotous crowd while proceeding from Bandel to Calcutta. The travel was not occasioned by any business of the assessee. On 5th June, 1950, the board of directors of the assessee recorded in a resolution passed that it felt that "the company was under an obligation to pay to Mr. Cameron's widow a sum as comp