RAJAN V Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a Hindu undivided family carrying on business in ginning and sale of cotton. It owned a ginning factory. For the assessment year 1960-61, it returned a net loss of Rs. 5,391. On a scrutiny of the assessee's accounts, the Income-tax Officer found the following discrepancies between the stock account and the stock declaration given by the assessee to the bank as on December 31, 1959 : <FRM>JUDGEMENT_64_ITR96_1974Html1.htm</FRM>

(2.) THE assessee was called upon to explain the above discrepancy. THE assessee's explanation was as follows :

(3.) HAVING failed to get a reference from the Tribunal, the assessee moved this court for a reference under Section 66(2) of the Income-tax Act and the following questions have been referred by the Tribunal on the directions of this court: