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PETITIONER: SIR KIKABHAI PREMCHAND
Vs.
RESPONDENT: COMMISSIONER OF INCOME TAX (CENTRAL),BOMBAY.
DATE OF JUDGMENT: 09/10/1953
BENCH: BOSE, VIVIAN BENCH: BOSE, VIVIAN SASTRI, M. PATANJALI (CJ) DAS, SUDHI RANJAN HASAN, GHULAM BHAGWATI, NATWARLAL H.
CITATION: 1953 AIR 509 1954 SCR 214 CITATOR INFO : E 1959 SC 82 (13) R 1962 SC 186 (9) D 1963 SC 477 (9) D 1963 SC 577 (15,16,17,21) R 1965 SC 342 (8) RF 1966 SC 4 (19) HO 1969 SC 812 (7) RF 1973 SC 989 (21,22,25)
ACT: Indian Income-tax Act (XI of 1922), s. 13-Ascertainment of profits-Assessee adopting mercantile system and valuing stock at cost price at beginning and close of each year- Withdrawal of stock from business-Whether business should be credited with market price on date of withdrawal.
HEADNOTE: The assessee who carried on business in bullion and shares kept accounts in the mercantile system and the method adopted by him for ascertaining his profits was to value stock at the beginning and close of each year at cost price. In the accounting year he withdrew some silver bars and shares from the business and settled them in trusts, and in the accounts of the business he valued them at the close of the year at cost price Held, per PATANJALI SASTRI C. J., S. R. DAS, VIVIAN BosE and GHULAM HASAN JJ. (BHAGWATI J. di...