78,749 should be available for set off against speculation loss.
At the companymencement of the accounting year relevant for the assessment year 1955 56, i.e., July 1, 1953, there was a balance of such liabilities for speculation differences in the account of one Ramnath Narendranath amounting to Rs.
The creditors had waived their right to receive the amount.
83,049.
The assessee carried on both speculative as well as number speculative business.
7,825 in cash.
The system of account regularly employed being mercantile, any liability for payment of difference on account of speculative transactions is allowed as a deduction in companyputing the profit or loss in speculative business.
the revenue authorities did number accede to this companytention.
The amount was number set off against the speculative loss either brought forward from the earlier years or suffered by the assessee during the accounting period on the ground that the liability written back and treated as business profit did number partake of the character of speculation profits.
75,224 along with a sum of Rs.
3,525 being similar liability due to other two creditors aggregating Rs.
78,749 was written back and taken credit of in the profit and loss account for the year ending June 30, 1954.
Out of this liability the assessee had paid to the party a sum of Rs.
The balance of Rs.
Grover, J. This is an appeal by certificate from a judgment of the Calcutta High Court answering the following question referred to it in the negative and against the assessee Whether, on the facts and in the circumstances of the case, the sum of Rs.
