TaxTMI 
TaxTMI 
1938 (3) TMI 18
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.... of Income-tax to assess under the proviso to Section 13 of the Income-Tax Act". 2. In our opinion, the only answer possible to this question in the form in which it is couched is 'yes.' Section 13 states that. "Income, profits and gains shall be computed for the purposes of Sections 10, 11 and 12 in accordance with the method of accounting regularly employed by the assessee". The question as framed assumed that there was a regular method of accounting. If that is so, then clearly the assessment can and must be under this section. But that does not reflect the dispute between the parties nor indeed is the question discussed in the body of the order. If the considerations with which Niyogi, A.J.C., was dealing are c....
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....ioner of Income-tax questions it, we must examine it now. 5. The Income-tax Commissioner's statement discloses that the assessee produced no accounts before 1930-31 but produced accounts for the first time in that year. They were not accepted because there were certain defects in them, but it is clear from the description given that they were made up according to the mercantile system. Accounts were again produced in 1931-32 and, according to the Commissioner again there were not enough details to enable the authorities to check the accuracy of the closing stock. 1932-33 is the year in dispute. The only defect so far as the present reference is concerned is the undervaluation (according to the defendant) of the closing stock. The Commi....
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....facturing Co. Ltd.'s case (supra). Section 23 deals with matters of assessment and not with the "computation of the income, profits and gains for the purposes of Sections 10, 11 and 12". It deals with the "return" and not primarily with the accounts. Under Section 22(1) the return has to be in a prescribed form and this form provides separately for the heads of assessable income detailed in Section 6. Three of them, namely, business, professional earnings and other sources are covered by Sections 10, 11 and 12. If the return is "correct and complete" then the Income-tax Officer has to "assess the total income of the assessee" and determine the sum payable by him "on the basis of such return&....