C.S.P. Singh, J.

1. THE Income-tax Appellate Tribunal, Delhi Bench 'A', has, at the instance of the assessee, 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 was justified in not allowing the alleged loss of Rs. 30,000 ?"

2. THE assessee runs a cold storage, and in its return for the year 1966. 67, it had debited an amount of Rs. 30,000 as loss in its profit and loss account. THE amount came to be debited by the assessee in the following circumstances. M/s. Sita Ram Sewa Ram had stored a large quantity of potatoes in its cold storage, which according to the assessee was damaged, because the party did not take delivery in time, with the result that they had to be disposed of for a nominal amount. A suit was filed by M/s. Sita Ram Sewa Ram against the assessee for damages amounting to Rs. 30,991. It appears that during the pendency of the suit the matter was referred to an arbitrator, who awarded Rs. 30,000 against the assessee. On the plaintiff moving an application for the award being made a rule of the court, the assessee objected, and succeeded on the ground that the award was i