1934 (9) TMI 1

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....-32. By order dated 5th July the Commissioner was directed to refer to this court the following question of law:- "Whether under the circumstances mentioned in the Order of the Income-tax Officer an assessment under the proviso to Section 13 could legally be made or whether the assessment should have been under the first part of Section 13." The material facts of this case are that in connection with the assessment for 1931-32, the company filed a return accompanied by copies of its balance-sheet, trading and profit and loss accounts. The Commissioner states that "the assessment has been made according to the entries in the books of the assessee with a slight variation which the Income-tax Officer considered necessary." This sli....

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....ase, it is clear that the assessment should have been made under the first part of Section 13 and not under the proviso. It has been alleged before us, and has not been denied, that the method of accounting disclosed by the petitioner in connection with the assessment under review is the same method which has been accepted by the Income-tax authorities both before and after the year in question. The exception taken in this particular instance by the Income-tax Officer to the method of accounting was based on the absence of a stock register. Counsel for the petitioner has assured us, and it has not been denied on behalf of the Income-tax authorities that the company has never had a stock register. In this particular case the suspicions of....