https://www.taxtmi.com/caselaws?id=64671 Rule 2B(2) of the Wealth-tax Rules, 1957 permits reworking closing stock value only where there is evidence that the market value exceeds the book value by the prescribed margin. A high gross profit rate by itself is not sufficient to establish that the closing stock was undervalued, and evidence from sales around the accounting year-end or other material is required. On the facts noted, the Revenue produced no such evidence, so the revaluation of closing stock was not justified and the additions based on that exercise were deleted. en-us Wed, 24 Apr 1985 00:00:00 +0530 Wed, 09 Feb 2011 12:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64671 Rule 2B(2) of the Wealth-tax Rules, 1957 permits reworking closing stock value only where there is evidence that the market value exceeds the book value by the prescribed margin. A high gross profit rate by itself is not sufficient to establish that the closing stock was undervalued, and evidence from sales around the accounting year-end or other material is required. On the facts noted, the Revenue produced no such evidence, so the revaluation of closing stock was not justified and the additions based on that exercise were deleted. Case-Laws Wealth-tax Wed, 24 Apr 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64671