COMMISSIONER OF INCOME TAX Vs. KRISHNA MINING CO
HIGH COURT OF ANDHRA PRADESH
COMMISSIONER OF INCOME-TAX
KRISHNA MINING CO
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Gopal Rao Ekbote, C.J. -
(1.) The following
two questions have been referred to
us by the Income-tax Appellate Tribunal,
Whether on the facts and in the
circumstances of the case, the method
of revaluation of closing stock adopted
by the Appellate Tribunal was a valid
(2.) If the answer to question No. 1 is
in the affirmative whether the relief
in revaluation of stock should be restricted to the actual
addition to the closing stock made by the Income-tax
'Officer or could exceed the same?
2. The assessee is a firm carrying on its
business in mica mining. For the assessment year 1960-61 the closing stock
valued by the assessee was found by the
Income-tax Officer as incorrect. The
closing stock consisted of three items,
crude mica, cut mica and waste rounds.
'The assessee valued out mica and waste
rounds at an average rate of Re. 1-01
At the close of the accounting year i.e.,
31st March, 1960 the assessee's stock
comprised of the following:
1. Crude mica
2. Cut mica including splittings
(3.) Waste rounds
The total quantity of crude mica processed
in that year was 25,84,429 pounds.
3. The said crude mica when processed
yielded during the year:
The total processing cost was Rs. 4,42,465.
The cost per pound thus came to 56 pies.;
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