JUDGMENT

MALIK, CJ., and MOOTHAM, J. - In the year 1947 a reference was made to this Court u/s 66(I) of the Indian Income Tax Act and the question referred to us was as follows :-

"Whether in the circumstances of this case the loss of Rs. 10,000 arising out of the loss of title and possession of the house under the High Court decree dated 26th October, 1943, during the accounting year was a revenue loss admissible under the provisions of section 10(2)(xi) or a capital loss."

The reference came up before a Bench of this Court on the 17th of December, 1951, and, in view of the provisions of section 10(2)(xi), the Bench asked for a further statement of the case. On the 13th of October, 1952, the Tribunal sent up a further statement of the case and it has now re-framed the question as follows :-

"Whether on the facts and in the circumstances of this case the loss of Rs. 10,000 arising out of the loss of title and possession of the house property under the High Court decree dated 26th October, 1943, was a business loss, which the assessee was entitled to set off against his business profits for the assessment year 1944-45."

The assessee carried on business "in speculation and ran a flour mil