- (1.) THE aforesaid two matters arise out of the order of the Income-tax Appellate Tribunal, Jaipur Bench, dated September 30, 1975, passed on the application for making a reference to this court for answering the questions of law submitted by the assessee arising out of the order of the Tribunal in I. T. A. No. 759 of 1972-73 in respect of the assessment year 1967-68. THE assessee moved the Tribunal for making a reference on the following questions of law for the opinion of this court: "1. Whether, on the facts and circumstances of the case and the material on record, the Tribunal was justified in refusing to allocate total accepted profits of Rs. 32,220 in cotton account No. II in the ratio of sales, i.e., 16,449 and Rs. 4,70,209, for both the periods relating to 1967-68 and 1968-69 assessments when there is practically no difference in average sale and purchase prices in both the periods.
(2.) WHETHER, on the facts and circumstances of the case and the material on record, the method of computation of profits done by the Tribunal in cotton account No. II is legally justified when another reasonable and scientific method of allocation of accepted profits in the ratio of sales was available. Whether, on the facts and circumstances of the case, there is any legal material or evidence for the Tribunal to hold that 35% yield of cotton on 29355 mds of kapas, 63.5% of cotton seed and 1.5% of wastage in the first period up to April 17, 1967, in cotton account No. II is not inconsistent, unjustified and unreasonable in view of the fact that in the same account, the Tribunal has accepted yield of 34.2% of cotton on total purchases of 32392 mds. kapas inclusive of 29355 mds. of kapas, 63% cotton seed and 2.8% wastage as reasonable after holding that there is no reason to disturb the result shown in cotton account No. II as a whole. Whether, on the facts and circumstances of the case and the material on record, the method of ascertaining the closing stock as on April 17, 1967, for 1967-68 and valuation adopted is legally correct. Whether, on the facts and circumstances of the case and the material on record, there is any basis and evidence for the finding that the trading result of 1968-69 will go to affect the trading result of 1967-68 in case profit of Rs. 32,220 in cotton account No. II is allocated in the ratio of sales. Whether the finding of the Tribunal that the assessee earned notional profit of Rs. 1,01,485 in cotton account No. II in the accounting year relevant to the assessment year 1967-68 is not perverse and is not based on surmises, conjectures and imaginations.
(3.) WHETHER the Income-tax Officer is correct, after having accepted diwali year in respect of cotton business for the assessment year 1968-69, not to have accepted diwali year for the same business for the assessment year 1967-68. Whether, on the facts and circumstances of the case and the material on record, in the absence of any extension application, interest under Section 139 can be legally charged. Whether disallowing of loss of Rs. 3,425 in joint venture account with Roop Lal Kanakmal in excess of total loss of Rs. 1,724 claimed by the assessee is not unjustified. ;