JUDGMENT

Rankin, C.J. - In this case the assessees claim to be entitled to the allowance authorized by Section 10, Sub-section 2, Clause (7), income tax Act:

in respect of any machinery or plant which in consequence of its having become obsolete has been sold or discarded.

2. The Commissioner for income tax has disallowed the claim and has stated a case for the opinion of. the Court upon the question "Was the claim for obsolescence allowance rightly disallowed?"

3. It appears that the assessees purchased some old machinery and started oil mill in Calcutta just before the beginning of the year 1927-28 being Ramnavami year 1984. It was however worked at a loss and the oil mill was accordingly closed down in that year, some parts of the machinery being sold and the remainder scrapped. The present question arises out of the assessment for 1929-30 which has been based upon the income of the previous year, namely Ramnavami 1985. The finding of the Commissioner is to the effect that the business of the oil mill closed down in 1984 for the reason that the machinery being old and worn out could not be worked at a profit in the face of competition, and he takes the view accordingly that the mach