Tewatia, J.

1. The Tribunal referred the following question of law for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal rightly confirmed the order of the Appellate Assistant Commissioner deleting the sum of Rs. 37,994 added by the Income-tax Officer under Section 41(1) of the Income-tax Act, 1961, from the assessment for the year 1969-70?"

2. The given amount was treated as income of the assessee by the assessing authority. On an appeal, the AAC held that the said amount was not the income of the assessee which order was sustained by the Tribunal.

3. From; the order of the assessing authority, it appears that the said amount was entered in the profit and loss account and against the said amount the following entry existed :

1. Amount forfeited and cane price payable Rs.37,994

4. When the assessingauthority asked to explain the nature of the said forfeiture, the assessee instead of offering any explanation, vide his reply dated October 28, 1971, claimed exemption and sought to amend the written statement in regard to the given item.

5. The assessee in respect of the said amount of Rs. 37,994 took up the stand that the sam