COMMISSIONER OF INCOME TAX Vs. PRANLAL P DOSHI

JUDGEMENT

(1.) IN this reference, at the instance of the Revenue, the following question is referred for our opinion :

(2.) IN order to appreciate the scope and ambit of this question, certain background facts become necessary to be noted at this stage. The respondent -assessee is an individual. The relevant assessment year is 1970 -71. The financial year ended on March 31, 1970. The assessee formerly was having business at Veraval in cotton seed processing and an oil extraction plant. For the assessment year in question, the assessee had declared a loss of Rs. 31,452 as under : Rs.Interest provision made in the suspense account 49,500Less : Receipt from sales of stores 18,048 -31,452

(3.) SO far as the receipt of Rs. 18,048 was concerned the Income -tax Officer took the view that the assessee had not furnished any details as to how he sold the goods, disposed of them and how he had purchased them.