https://www.taxtmi.com/caselaws?id=168680 For income-tax computation, profits must reflect the true year's results by bringing stock into account at both the beginning and end of the accounting period on a real valuation basis. A base stock system that excludes fixed process stock from the trading account and assigns an arbitrary value to spare process stock was held to distort profits and fail to disclose the full taxable gains of the year. The accepted commercial rule of valuing stock at cost or market price, whichever is lower, applies only where it correctly reflects income. On the facts, the company could not use the base stock method, and the Revenue's assessment was upheld. en-us Tue, 08 Dec 1953 00:00:00 +0530 Sat, 21 Mar 2015 18:01:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168680 For income-tax computation, profits must reflect the true year's results by bringing stock into account at both the beginning and end of the accounting period on a real valuation basis. A base stock system that excludes fixed process stock from the trading account and assigns an arbitrary value to spare process stock was held to distort profits and fail to disclose the full taxable gains of the year. The accepted commercial rule of valuing stock at cost or market price, whichever is lower, applies only where it correctly reflects income. On the facts, the company could not use the base stock method, and the Revenue's assessment was upheld. Case-Laws Income Tax Tue, 08 Dec 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168680