C.S.P. Singh, J.

1. THE Income-tax Appellate Tribunal, Delhi Bench 'B', has referred the following question for the opinion of this court:

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in its view that the liability to pay the sum of Rs. 14,250 under the court decree dated December 18, 1969, fell upon the assessee as a trading liability and was, therefore, allowable as a deduction?"

2. ALTHOUGH the Commissioner has asked for a reference of four questions, the Tribunal has referred only the question indicated above. But, in the statement of the case drawn up in para. 8, it has been stated that the question referred also embraces within it the question of allowance of litigation expenses, amounting to Rs. 2,217, which was the subject-matter of question No. 2 of the reference application filed by the Commissioner. Before we state the facts relevant for deciding the referred question, it is necessary to consider as to whether the question as referred entitles us to consider the allowance of litigation expenses which amounted to Rs. 2,217. These expenses were incurred in defending a suit which was decreed and as a result of which the assessee