S K SANDERSON MINERALS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal has referred the following questions of law under s. 256(1) of the IT Act, 1961, to this Court:

(2.) IN this proceeding the assessment year involved is 1978-79 for which the relevant accounting period is the year ended on 31st Dec., 1977.

(3.) THE case of the assessee is that in the subsequent year the auditors were satisfied about the stocks. THE assessee company had already made an investigation and found that the statement of stocks was in order. This aspect of the matter was taken into consideration by the Tribunal. THE assessee had carried investigation into the stock but according to the company investigation was not done in presence of the representatives of the auditors. In the auditor's report in the subsequent year to which the learned counsel appearing for the assessee had invited our attention it has been recorded that the company had gone into and examined the stock afresh. THE auditors did not state that they had examined the stock afresh and had come to the conclusion that the stock as found by them tallied with the stock recorded the books of the assessee.