COMMISSIONER OF INCOME TAX Vs. G R THANGAMALIGAI

JUDGEMENT

(1.) THE questions referred to us at the instance of the Revenue are :

(2.) THE assessee is a firm which had two partners. By a deed of dissolution dated July 27, 1986, one of the partners retired and the business continued as the proprietary concern of the other. THE closing stock of gold as on the date of retirement was taken as 88,520 grams. THE assessee valued it at Rs. 185 per gram, after stating that the market wholesale rate for 22 carat gold was at Rs. 193 per gram.

(3.) HAVING regard to the finding of the Commissioner that the deductions were required to be given on account of the impurities and change of fashion, it is clear that even he did not regard the market rate as one that was required to be adopted. He has not found that the rate actually adopted is less than the one that should have been adopted.