COMMISSIONER OF INCOME TAX Vs. RAMESHCHANDRA A SHAH

JUDGEMENT

(1.) BY of these appeals, the appellant of Tax Appeal No. 616/2005 has challenged the judgment and order dated 21.8.2003 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'B' in ITA No. 1186/Ahd/2001 for A.Y. 1997 -98 and the appellant of Tax Appeal No. 627/2005 has challenged the judgment and order dated 23.10.2005 passed by the Income Tax Appellate Tribuna, Ahmedabad Bench 'B' in ITA No. 2341/Ahd/1996 for A.Y. 1991 -92.

(2.) W hile admitting these appeals, this Court has framed the following substantial question of law: Question in Tax Appeal No. 616/2005:

(3.) THE facts of the present case are that the return of income was filed by the assessee on 29.10.197 declaring a total income of Rs. 2,38,321/ - which was accepted u/s. 143(1)(a) on 26.3.98. The tax payable was determined at Rs.NIL after considering prepaid taxes of Rs. 63,776/ -. The assessee is the proprietor of M/s. Jyoti Electricals which is engaged in the trading business of electrical goods was like preceding A.Ys. The system of accounting has been adopted as mercantile on the basis of which annual accounts for F.Y. 1996 -97 have been prepared and furnished as a statutory requirement under the provisions of section 44 -AB of the IT Act, 1961. The value of closing stock has been shown at Rs. 9,456/ - on the basis of inventory of unsold goods prepared at the end of the year. Therefore, notice under sec. 143(2) came to be issued to the assessee and after considering the material, the assessment order has been passed.