1936 (6) TMI 12

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ER This is an application under Section 66 (3) of the Indian Income-tax Act for the issue of a mandamus to compel the Income-tax Commissioner, Punjab, to state the case of Badri Shah Sohan Lal, Saraf of Gujranwala to this Court. The question of law formulated on behalf of the assessee is as follows :- 'Is there any material on record justifying the rejection of the trading account ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er consideration to .19 per cent. The Income-tax Officer was of the opinion that as the rate of profit disclosed by the assessee was below the average expectation of gold business during the year of its steady rise in price, the books of the assessee did not disclose the true state of his business. Keeping in view profits earned by other persons carrying on similar business, the Income-tax Officer....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Rs. 3,747. In the year 1933-34, the stock rose to 2.9 lacs and the gross profits, therefore, were much less than secured interest payable on the best securities. As pointed out by the Commissioner the business requires considerable skill and in spite of this the rate of profit shown was not even equivalent to the insurance payable on the gold transmitted by the assessee to Bombay. The assessee....