https://www.taxtmi.com/caselaws?id=149880 Annual profits must be computed on a consistent stock-valuation basis carried from year to year; adjusting only closing stock without making a corresponding adjustment to opening stock distorts true profit. The Privy Council held that where the assessee regularly employed a proper method of accounting, income and profits had to be computed accordingly under section 13 of the Indian Income-tax Act, 1922. Revaluing only one side of the trading account could not determine real profits, so the Revenue's approach was rejected and the assessee's method was upheld. en-us Mon, 04 Nov 1929 00:00:00 +0530 Wed, 22 Jul 2026 16:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=149880 Annual profits must be computed on a consistent stock-valuation basis carried from year to year; adjusting only closing stock without making a corresponding adjustment to opening stock distorts true profit. The Privy Council held that where the assessee regularly employed a proper method of accounting, income and profits had to be computed accordingly under section 13 of the Indian Income-tax Act, 1922. Revaluing only one side of the trading account could not determine real profits, so the Revenue's approach was rejected and the assessee's method was upheld. Case-Laws Income Tax Mon, 04 Nov 1929 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=149880