DERBYSHIRE,C.J. - (1.) IN this matter Mussammat Hashen Banu Bibi obtained a Rule against the CIT Bengal, which is very lengthy in its terms. Its purpose was that he should state a case with regard to certain legal points which are said to arise out of an assessment which had been made upon the estate of her deceased husband, the late Khan Bahadur Hafez Mohammad Hossain, for the year of assessment 1937- 38. The return of income made by the deceased showed a net loss of Rs. 45,032.
(2.) THE deceased carried on a general merchant's business and apparently also held quantities of stocks and shares which he sold and with the proceeds brought other stocks and shares. Apparently he used the stocks and shares like other commodities in his business. On 21st July, 1938, the ITO of Dacca made an assessment upon the deceased in respect of the business. The deceased made a return which showed a loss of Rs. 99,071. We are told that this result was arrived at by bringing forward the valuation of the closing stocks for 1342 B. S. as the figure for the opening stock in 1343 B. S. and taking the assessee's valuation as the figure for the closing stocks on the last day of 1343 B. S.
(3.) THE ITO, however, held that there was a net profit of Rs. 2,26,670. We are told that this result was arrived at by valuing the opening stocks at the market price prevailing on the last day of the year 1342 B. S. and the closing stocks at the market price prevailing on the last day of the year 1343 B. S.;