https://www.taxtmi.com/caselaws?id=69854 Stock valuation for income-tax purposes must disclose true trading results. A consistently followed base stock method may be rejected where fixed historical values for silverware and raw silver are disconnected from actual cost or prevailing market value, particularly when market prices have materially changed. The accepted valuation principle is cost or market value, whichever is lower; notional figures cannot be retained solely because they were used in earlier years. Where closing base stock is revalued on a different basis, corresponding adjustment of opening stock is necessary to ensure a fair computation of trading income. The resulting figures require verification before the taxable difference is finally computed. en-us Fri, 11 Mar 1988 00:00:00 +0530 Tue, 12 Apr 2011 14:00:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69854 Stock valuation for income-tax purposes must disclose true trading results. A consistently followed base stock method may be rejected where fixed historical values for silverware and raw silver are disconnected from actual cost or prevailing market value, particularly when market prices have materially changed. The accepted valuation principle is cost or market value, whichever is lower; notional figures cannot be retained solely because they were used in earlier years. Where closing base stock is revalued on a different basis, corresponding adjustment of opening stock is necessary to ensure a fair computation of trading income. The resulting figures require verification before the taxable difference is finally computed. Case-Laws Income Tax Fri, 11 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69854