https://www.taxtmi.com/caselaws?id=214355 Conversion of a partnership firm into a private limited company under Chapter IX of the Companies Act, 1956 was treated as a succession by vesting and continuation of business, not a transfer by distribution of assets. Applying section 170 of the Income-tax Act, and noting that sections 45 and 47 were not attracted on these facts, the Court held that the predecessor firm's closing stock could not be revalued at market price merely because the business was taken over by the successor company. The closing stock had to be taken at cost price, and the issue was decided in favour of the assessee. en-us Mon, 26 Dec 2011 00:00:00 +0530 Wed, 01 Aug 2012 00:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214355 Conversion of a partnership firm into a private limited company under Chapter IX of the Companies Act, 1956 was treated as a succession by vesting and continuation of business, not a transfer by distribution of assets. Applying section 170 of the Income-tax Act, and noting that sections 45 and 47 were not attracted on these facts, the Court held that the predecessor firm's closing stock could not be revalued at market price merely because the business was taken over by the successor company. The closing stock had to be taken at cost price, and the issue was decided in favour of the assessee. Case-Laws Income Tax Mon, 26 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214355