T. ABDUL MAJEED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS IT Reference arises out of the reference made by the Tribunal, Cochin Bench in RA No. 8 (Coch)/1981 arising out of ITA No. 8 (Coch)/81 for the asst. yr. 1977 -78 to this Court on the following facts.

(2.) THE assessee is carrying on the business in textiles under the name and style "Textile Centre" at Ernakulam. For the asst. yr. 1977 -78, the assessee filed a return declaring an income of Rs. 85,200, closing stock credited to trading account valued at Rs. 10,36,384.75 and the gross profit disclosed was at Rs. 5,67,261 which comes to 5.85 per cent. But on the basis of certain papers seized in the course of search under s. 132(1) of the IT Act, as per the stock inventories seized, the closing stock as on 31st December, 1976 comes to Rs. 12,17,727.

(3.) HEARD counsel on both sides.