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TMI Blog1966 (2) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso to section 13 as regards the assessment of the engineering department of the assessee for the relevant ' assessment year ' - Held, yes - ITO was justified in applying the proviso to s. 13 and making an estimate of profits X X X X Extracts X X X X X X X X Extracts X X X X ..... ecause while the receipts of raw materials were shown by weight, the finished goods were accounted for not in weight, but in terms of running feet of pieces of different sizes, so that any reconciliation between the production and the sales and closing stocks was not possible. Upon these facts, the Income-tax Officer applied the proviso to section 13 of the Act, and, having regard to certain circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes of sections 10 and 12, in accordance with the method of accounting regularly employed by the assessee : Provided that, if no method of accounting has been regularly employed, or if the method employed is such that, in the opinion of the Income-tax Officer, the income, profits and gains cannot properly be deduced therefrom, then the computation shall be made upon such basis and in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials be shown by another standard, as has been done in the instant case, it is quite clear that there cannot be any deduction of profits therefrom, and this proposition could not be controverted on behalf of the assessee. In the circumstances, the question referred to must be answered in the affirmative. The Commissioner shall be entitled to his costs. RAY J.-I agree. Question answered in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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