V.K. Moosakutty vs Commissioner of Income Tax

Om Prakash, C.J.—By this application made under s. 256(2) of the Income Tax Act, 1961, the assessee requires us to direct the Tribunal to draw up a statement of the case and refer the following questions for the opinion of this Court

(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in not allowing the corresponding adjustments in the closing stock valuation while admittedly the opening stock valuation stands reduced and the non-reduced valuation of the opening stock was reckoned in valuing the closing stock.

(2) Whether, on the facts and in the circumstances of the case, the Tribunal has any material to come to the conclusion that the closing stock valuation does not require any adjustment as the opening stock as such was not held as closing stock.

(3) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in relying on materials which are not borne out by the records of the case in arriving at the conclusion that the closing stock valuation does not call for any adjustment.

(4) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the petitioner has not taken up the question of addition of Rs. 2 lakhs, while the grounds of appeal clearly states the same.

Inasmuch as, question No. 1, in our opinion, is a question, of law, we direct the Tribunal to draw up a statement of the case and refer the abovementioned question No. 1 only for the opinion of this Court.

The application is accordingly allowed.