CHAKRAVARTTI, J.

1. THIS is a reference under s. 66(1) of the Indian IT Act at the instance of the CIT, West Bengal, in respect of a deduction of Rs. 55,030 from the business profits of the assessee on the ground that the amount constituted a bad debt. The relevant facts are as follows:

2. THE assessee is a timber merchant. On the 5th Feb., 1930, he obtained a loan of Rupees one lakh from the Bank of India, Bombay, on the joint security of himself and another man called Mamraj Rambhagat. On the same day Mamraj Rambhagat obtained a loan of Rupees one lakh from the Imperial Bank of India, Bombay, on the joint security of himself and the assessee. THE assessee paid off his debt to the Bank of India in due time, but Mamraj Rambhagat failed to pay his. It appears that on the 24th March, 1930, the Imperial Bank realised from the assessee the debt owing jointly by him and Mamraj Rambhagat the amount recovered being Rupees one lakh six thousand and twenty six. Exactly a month later on the 24th April, 1930, Mamraj Rambhagat failed in his business and his estate went into the hands of Receivers. What kind of Receivers they were and in what proceedings the appointment of Receivers was