ASHOK KUMAR GOYAL Vs. INCOME TAX SETTLEMENT COMMISSION

JUDGEMENT

(1.) By means of the present writ petition filed under Article 226 of the Constitution of India, the petitioner seeks a writ order or direction in the nature of certiorari calling for the records of the case and quashing the order dated March 21, 1997 passed by the Income-tax Settlement Commission, New Delhi, respondent No. 1 filed as annexure 1 to the writ petition and other consequential reliefs.

(2.) Briefly stated the facts giving rise to the present petition are as follows :

(3.) The petitioner is an individual. The petitioner, according to him is engaged in the business of job work of manufacture of silver chains upon orders received from customers. He had 536 kilograms (net) of silver which he had sold during the financial year 1992-93 for a total sum of Rs. 41,78,937. According to the petitioner, he had acquired the silver over a period of years at a total cost of Rs. 30,43,711 which resulted in net profit of Rs. 11,35,226. The income-tax authorities took certain proceedings, whereupon the petitioner approached the Income-tax Settlement Commission, New Delhi under the provisions of Section 245C of the Income-tax Act, hereinafter referred to as the Act. After giving an opportunity of hearing to the petitioner as also the Income-tax Department, the Income-tax Settlement Commission, by the impugned order had held that the profit arising out of the sale of silver in question should be assessed as business profit for the assessment year 1993-94 as the silver was stock-in-trade.