ALLAHABAD GLASS WORKS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE questions referred for the opinion of this court are :

(2.) THE assessee is a firm of five partners and runs a glass works at Allahabad and Pottery works styled Gujrat Pottery Works at Derol, District Panchmahals and some other business which it is not necessary to mention. THE pottery business was started in the year relating to the assessment year 1942-43 and the income-tax authority found that from the very start it has always been running at a loss. Losses claimed each year in respect of this business were set off against the profits which the firm had from other business. In the relevant year, the books of account produced by the assessee showed a loss of Rs. 53,454 in the pottery works. THE Income-tax Officer in the course of his examination of the books found that the cash book produced was not a book written from day to day. Certain errors in the writing of the English year pertaining to several dates were considered by the from day to day but and been subsequently prepared. he thought it had been prepared for income-tax purpose. THE Income-tax Officer, therefore, refused to allow the loss claimed by the assessee. He, however, did not make an estimate of profits either. THE depreciation allowance claimed by the assessee amounting to Rs. 16,030 was also not allowed by the Income-tax Officer.

(3.) ON the assessees application the questions of law mentioned above have been referred for the opinion of this court.