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TMI Blog1960 (8) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... book and certain pay sheets were not found to be in order? (2) Whether on the facts and in the circumstances of the case, there was material before the Tribunal to disallow the loss amounting to ₹ 29,946 as determined by the Appellate Assistant Commissioner, and depreciation relating to the business of Gujrat Pottery Works for assessment year 1947-48 claimed by the assessee merely because the cash book was held to have been written not from day to day but much later? The assessee is a firm of five partners and runs a glass works at Allahabad and Pottery works styled Gujrat Pottery Works at Derol, District Panchmahals and some other business which it is not necessary to mention. The pottery business was started in the year rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistant Commissioner directed that this amount of ₹ 29,946 besides such depreciation allowance as the assessee may be found entitled to should be set off against the other profits of the firm. The Income-tax Officer preferred an appeal and the Income-tax Appellate Tribunal agreeing with the Income-tax Officer held that the books were rightly rejected and allowed the appeal in its entirety setting aside the order passed by the Appellate Assistant Commissioner. On the assessee's application the questions of law mentioned above have been referred for the opinion of this court. We have heard learned counsel for the assessee at some length. The Income-tax Officer who examined the account books found that the cash book was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption could be based is a question of fact and we do not think this court can be called upon to express any opinion in the matter. We do however find that there was some material on which the cash book could be held to be unreliable. The Income-tax Officer has observed in his assessment order that the stock register looked quite fresh and appeared to have been written at a few sittings while the cash book also did not look to be the book of original entry. We, therefore, think that there was material before the Income- tax Officer on which he could discard the assessee's books of account. Section 13 of the Income-tax Act requires that the income profits and gains shall be computed for the purposes of section 10 in accordance with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee from this business. it was mentioned that it was necessary for the Income-tax Officer to enter upon a computation of the income and this he could do on some basis which the proviso required him to do. In the instant case he had not adopted any basis nor had he computed any income. It is open to question as to whether the Income-tax Officer should simply say that he would not take any income from that source. This question however has not been raised by the assessee and has not been referred to us. We, therefore, would not like to express any opinion on it. Relating to depreciation however, we are of opinion that the matter stands on a different footing. The depreciation has to be allowed to an assessee under the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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