AI Structured Summary
Not yet generated for this judgment
Judgment
Having heard learned counsel for the parties, we are satisfied that the following question does arise from the order of the Income Tax Appellate Tribunal :
"1. Whether the Tribunal was legally correct in upholding the addition made to the closing stock valuation and reject the method of valuation adopted by the assessee of average cost instead of market value ?"
We, accordingly, direct the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad, to draw up a statement of the case and refer the aforesaid question for the opinion of this court.
As regards the second question proposed in this application u/s 256(2) of the Act, we are of the opinion that it is not a fit question for reference and, therefore, the prayer for issuing a mandamus to the Tribunal directing it to make a reference on the second question is rejected. It may be observed that, in the application u/s 256(1), the assessee had raised some other question'' also which have been given up in the application u/s 256(2) of the Act. The questions which have not been raised in the application u/s 256(2) of the Act need not be gone into by us.
This application is, accordingly, allowed in part. There shall be no order as to costs.