2002 (10) TMI 73 - MADRAS HIGH COURT - Income Tax

Head Note / Extract:
"(1) Whether, Tribunal was right in law and had enough materials to hold that the fair market value of the closing stock of jewellery as on the date of retirement of partner, Shri G. Mahalakslimi Ammal, has to be adopted on the basis of wholesale rate and further deduction of 10-15 per cent. has to be allowed in respect of wastage as against the actual market rate quoted on the date of retirement? - (2) Whether, Tribunal was right in law and had enough materials to hold that the original assessment order was neither erroneous nor prejudicial to the interests of the Revenue? - (3) Whether, Tribunal was right in law in holding that the Commissioner of Income-tax was not justified in initiating revisionary proceedings under section 263 and setting aside the original assessment order?" - In the absence of any finding that there is loss of revenue, interference under section 263 was not justified. Questions Nos. 2 and 3 are answered in favour of the assessee and against the Revenue. - As regards the first question, it is returned unanswered as we do not have proper material before us that question being essentially one of fact.