1994 (2) TMI 5

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..... filed this application under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act", for short), for compelling a reference of questions of law suggested in paragraph 19 of the application. The matter relates to the assessment year 1976-77, the relevant year being 1975-76. For the assessment year 1975-76, the assessee filed a return showing an income of Rs. 93,760. The a .....

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..... tion of Rs. 37,146 on account of undervaluation of the closing stock of Bidi Patta Account, as seen in annexure "A-4". The assessee filed an appeal before the Commissioner who dismissed the same. The second appeal to the Tribunal proved unsuccessful. The Tribunal also declined to make any reference. Learned counsel for the assessee submitted that in computing the value of the closing, balance fo .....

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..... had accepted the valuation of the opening balance for the year 1975-76 as shown in the profit and loss account. The same method was followed for the succeeding year. He started with the profit and loss account of the assessee and made an addition towards the discrepancy in the valuation of the closing stock. The profit and loss account naturally reflects the opening balance for that year. Because .....

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