https://www.taxtmi.com/caselaws?id=168508 For income tax stock valuation in a retail trade, market value means the price reasonably expected to be realised in the market where the goods are ordinarily sold. The lower-of-cost-or-market rule allows a trader to recognise an anticipated loss on sale, but it does not justify reducing closing stock merely because a smaller profit margin is expected. A notional replacement value based on internal gross margin calculations was treated as artificial and not as market value. The proper basis was the expected retail sale price, subject only to allowable deductions on the facts, so the replacement-value method was rejected. en-us Tue, 04 Nov 1969 00:00:00 +0530 Tue, 10 Mar 2015 17:04:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168508 For income tax stock valuation in a retail trade, market value means the price reasonably expected to be realised in the market where the goods are ordinarily sold. The lower-of-cost-or-market rule allows a trader to recognise an anticipated loss on sale, but it does not justify reducing closing stock merely because a smaller profit margin is expected. A notional replacement value based on internal gross margin calculations was treated as artificial and not as market value. The proper basis was the expected retail sale price, subject only to allowable deductions on the facts, so the replacement-value method was rejected. Case-Laws Income Tax Tue, 04 Nov 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168508