JHANDU MAL TARA CHAND RICE MILLS vs COMMISSIONER OF INCOME-TAX, — 1971 PTD 969

Citation: 1971 PTD 969

Court: Punjab and Haryana High Court

Year: 1970

Decision Date: 1970-12-31

Parties: JHANDU MAL TARA CHAND RICE MILLS vs COMMISSIONER OF INCOME-TAX, JUDGMENT

Headnotes

Case cited as 1971 PTD 969

Judgment Text

Court Name: Punjab and Haryana High Court Judge(s): Mehar Singh, Balraj Tuli Title:JHANDU MAL TARA CHAND RICE MILLS vs COMMISSIONER OF INCOME-TAX, JUDGMENT Reported As: 1971 PTD 969 Result: Questions answered in the negative Judgment JUDGMENT BAL RAJ TULI, J.----The assessee-firm, Messrs Jhandu Mal Tara Chand, in the year ending March 31, 1958, relevant to the assessm ent year 1958-59 husked 71,822 maunds of paddy which yielded 44,997 maunds of polished rice, giving an average of 25 seers, I chattack per maund or 62'6 per cent. The assessee --firm had sheller as well as huller types of machines for husking the paddy. During the previous years also, the yield of rice was almost the same, i.e., a little more than 62 per cent. Which had been accepted as the correct yield by the Income-tax Officer in those years. The method of keeping accounts by the firm was also not challenged or doubted by the Income-tax Officer in the previous years. While making assessment for the assessment year 1958-59, the Income-tax Officer considered that the yield of polished rice shown by the assessee-firm was on the low side and, therefore, called upon the assessee-firm to prove that the yield of rice shown by it was correct. The explanation of the assessee-firm was that most of the paddy had been purchased in the months of October, November and December (55, 665 maunds) and the paddy purchased during these three months was highly moist and, therefore, the yield was low. The other reason given by…

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