Loss of stock-in-trade claim raised a referable question of law on denial after seizure and sale.

Valuation of closing stock was treated as a pure question of fact and, by itself, did not give rise to a referable question of law. The assessee's claim for loss of stock-in-trade, however, raised a legal issue on whether loss arising from seizure and sale of stock could be denied on the facts. A referable question of law was accordingly found to arise on that claim, and the matter was directed to be referred to the High Court.

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Issues: Whether a question of law arose from the Tribunal's order on the assessee's claim of loss of stock-in-trade, warranting a reference to the High Court.

Analysis: The issue relating to valuation of closing stock was treated as a pure question of fact and did not give rise to a referable question of law. However, the Tribunal's rejection of the assessee's claim for loss of stock-in-trade involved a legal question, namely whether the claim for loss on seizure and sale of stock could be denied in the circumstances of the case.

Conclusion: A referable question of law did arise on the claim for loss of stock-in-trade, and the Tribunal was directed to state the case and refer that question to the High Court.

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