GANESHI LAL AND SONS JEWELLERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THESE are two applications under Sec. 66(3) of the Indian Income-tax Act requesting this court to direct the Commissioner of Income-tax to state a case for the decision of this court.

(3.) IT may be mentioned that in March, 1931, the assessee for the first time valued their stock and prepared a stock book, according to which the total value of the stock in trade was approximately Rs. 14,00,000. The returns submitted by the assessees for the years in dispute showed a loss, but they were not accepted by the Income-tax Officer. He did not accept the stock valuation and he had also refused to accept to 1932-33 he selected 62 articles, 21 being from the jewellery department and 41 from the cloth and embroider department and he asked the assessees to prove their cost. The assessees were only able to prove the cost of 14 out of the 41 items from the jewellery department, the assessment filed a statement in respect to 9 of those items only, but were unable to establish the correctness of that statement.