COMMISSIONER OF INCOME TAX Vs. HIRJI BHARMAL

JUDGEMENT

(1.) THIS is an application by the CIT, Bhopal u/s 256(2) of the IT Act, 1961, seeking a direction from this court to the Appellate Tribunal, Indore to refer the following questions for decision of this court :

(2.) ASSESSEE , a partnership firm, filed its return for asst. yr. 1974 -75. The assessee deals in cotton business. The details of closing stock were filed by the assessee and it valued the same at the market price is obtaining on the last date of the accounting year. The ITO revalued the closing stock and made an addition.

(3.) PERUSAL of the orders passed by the ITO, CIT (Appeals) and the Appellate Tribunal shows clearly that the Appellate Tribunal recorded a finding of the fact that the assessee followed the practice of valuation of the closing stock on market price and it was entirely his choice to do so because this valuation and the income therefrom was only notional and not real. The finding of the Appellate Tribunal about the valuation of the closing stock and the method consistently adopted by the assessee in this behalf is clearly one of fact and no question of law arises therefrom.