1980 (10) TMI 91

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....riod of the accounting year ended on 13th March, 1976. There was a fire in the early hours of the morning on 26th Jan., 1975 in the factory premises belonging to the assessee. In the fire, machinery, stocks and books of accounts were re-destroyed. The assessee started new books of accounts from 26th Sept., 1975 onwards. This caused the splitting up of the assessee's accounting period into two peri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....imated the profit for the first period at Rs. 70,000 but the AAC has accepted the disclosed figure of profit. The decision of the AAC on this point is not challenged by the Revenue and has become final. In regard to the second period, the ITO disallowed the loss to the extent of Rs. 51,429 by rejecting the value of opening stock as taken by the assessee at Rs. 2,87,000. The ITO took note of the fa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....alue of opening stock for the second period and the profit for the first period having been calculated on the basis of closing stock value of Rs. 2,87,000, the Revenue cannot take a different figure of opening stock for the second period. The proposition put forward by Shri Kappor is sound and as long as the assessee's version about the profit for the first period being Rs. 50,465 holds the field,....