Thereafter on March 26, 1959, the Income tax Officer moved the Appellate Assistant Commissioner requesting that the latters appellate order, dated 30.6.1965, relating to the assessment year 1960 61 be rectified and brought in companyformity with the Tribunals order.
2,14,682/ to the value of the stock so that according to his assessment, the closing stock for the assessment year 1959 60 worked out to Rs.
Accordingly I direct that the value of opening stock for the A.Y. 60 61 be taken at Rs.
The assessee companytended that opening stock for the assessment year 1960 1961 should be taken as Rs.
From the judgment and order dated 24th June, 1970 of the Gujarat High Court in Special Civil Application No.
8,04,121/ .
The appellate order which is number sought to be rectified, was passed on 30.6.65.
5,89,439/ , being equal to the value of the closing stock determined by the Tribunal for the A.Y. 1959 60.
5,89,439/ without making the addition of Rs.
On January 22, 1969, the Tribunal allowed the assessees appeal referred to above relating to the assessment year, 1959 60, and accepted the assessees explanation about the discrepancy relating to the value of stocks between its account books and those of the Bank.
Having failed in first appeal before the Appellate Assistant Commissioner, the assessee preferred a second appeal to the Tribunal.
2,14,682/ made by the Income tax Officer to the closing stock relating to the assessment year 1959 60 be deleted.
8,04,121/ .
Against this order of the Income tax Officer, the assessee went in appeal before the Appellate Assistant Commissioner who, on 30.6.1965, accepted the same, despite opposition from the Income tax Officer who had personally appeared there to defend his order and held that the opening stock for the assessment year 19601961 be taken at Rs.
The rectification is therefore in time.
8,04,121/ .
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Income tax Officer rejected this companytention and took up the opening stock for that assessment year at Rs.
Despite objection from the assessee, on 28.6.1969, the Appellate Assistant Commissioner passed an order for rectifying his decision dated 30.6.1965 The order of rectification runs thus record of appeal as pointed out in the I.T.0s letter dated 26.3.69 mentioned above.
The Income tax Officer rejected this explanation and added Rs.
T. Desai and I. N. Shroff, for the appellant.
For the assessment year 1959 60, the assessee showed in its books the value of its closing stock at Rs.
A. Ramachandran and S. P. Nayar, for the respondents.
5,89,439/ .
1259 of 1969.
Thus, according to the Tribunals decision, the closing stock for the assessment year 1959 60 which would also be the opening stock for the succeeding year was Rs.
Hence this appeal.
1793 of 1970.
The assessee is a Limited Company which manufactures textiles in its Mill.
The assessee tried to explain away this discrepancy by saying that it had given an incorrect figure of its stock to the Bank with a view to obtain higher amount of over draft.
The Judgment of the Court was delivered by SARKARIA, J. This appeal directed against the judgment, dated 24.6.1970, of the High Court of Gujarat raises a question in regard to the interpretation of s.35 of the Indian Income tax Act, 1922 for short, called the Act .
The Income tax officer in the companyrse of the assessment, detected that there was some discrepancy between the value of the stock of companyton shown in the books of the assessee and the records of the State Bank of India with which it had hypothecated that stock.
Pending the appeal before the Tribunal, the Income tax Officer took up the assessment of its income for the next assessment year i.e. 1960 61.
2,14,682/ .
The Tribunal directed that the addition of Rs.
5,89,439/ as shown in the books of the assessee.
The Appellate Assistant Commissioner then issued a numberice under s.154 of the Act to, the assessee to show cause why the appellate order, dated 30.6.1965, be number rectified under s.35 of the Act.
Neither party appealed against this order before the Tribunal.
