Balakrishna Ayyar, J.-

Under section 66 (1) of the Income-tax Act the Income-tax Appellate Tribunal of Bombay has referred the following question for the decision of this Court:-

“Whether the assessee is entitled to earned income relief on Rs. 31,006 income from his profession aforesaid, or only on Rs. 16,149 the net total income aforesaid computed in the manner laid down in the Income-tax Act?”

The relevant facts are these:-The assessee is a chartered accountant. During the accounting year which ended on 31st December, 1950, the assessee earned Rs. 31,006 from the practice of his profession. He received also a further income of Rs. 741 from other sources, making a total of Rs. 31,747. He incurred a loss of Rs. 15,598 in respect of the properties that he owned. The result was that his total net income for the year was only Rs. 16,149. The assessee claimed that he was entitled to earned income relief under section 15-A of the Income-tax Act in respect of Rs. 31,006 which was the income he received from the practice of his profession, subject to the statutory maximum of Rs. 4,000. The Income-tax Officer, however, held that he was entitled to relief only in respect of Rs. 16,149. The app

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