Suhas Chandra Sen, J. - (1.) The following question of law has been referred by the Tribunal under Section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in disallowing the loss of irrecoverable advance of rupees twenty lakhs in computing the assessee's profits on the ground that the amount was spent by Saksaria Cotton Mills Ltd. on the modernisation and improvement of the machinery."
(2.) The facts of the case are set out in detail in the judgment that has been delivered in the assessee's own case being Income-tax Reference No. 100 of 1977 ; CIT v. Hashimara Industries Ltd.
(3.) In this reference, the dispute is about the allowability of a sum of Rs. 20,00,000 given by way of advance to Saksaria Cotton Mills Limited for modernisation of its plant. The assessment year involved is 1968-69 for which the previous year ended on March 31, 1968.;