C.K.Banerji, J. - (1.) This reference arises out of the income-tax assessment of Anglo-Indian Jute Mills Co. Ltd., the assessee, for the assessment year 1962-63, for which the relevant previous year ended on the 31st March, 1962.
(2.) The facts found and/or admitted in the proceedings are as follows :
(3.) The assessee is a limited company and carries on business of manufacture and sale of jute goods. Before the ITO the assessee claimed deduction of Rs. 2,54,064 paid by it for purchase of loom hours, as business expenditure. It also claimed set off of Rs. 11,50,000 received by it from M/s. Tolaram Prakash Chand on settlement of the assessee's claim for damages for breach of certain transferable specific delivery contracts against speculative losses suffered by the assessee on settlement of certain other transferable specific delivery contracts. The ITO rejected both the said claims of the assessee.;