https://www.taxtmi.com/caselaws?id=177441 Section 13 of the Income-tax Act, 1922 requires income to be computed according to the assessee's regular method of accounting, but permits departure where that method does not truly reflect profits. The text explains that if stock valuation on the assessee's adopted basis distorts true income, the Income-tax Officer may substitute a proper basis to deduce profits correctly. It also notes that a departure in an earlier year from the regular cost method, by using market value for closing stock, was not binding as the regular accounting practice. On that reasoning, cost valuation for opening and closing stock was treated as the proper method, with rectification of the earlier assessment contemplated under Section 35. en-us Fri, 14 Dec 1945 00:00:00 +0530 Sat, 09 Jan 2016 12:51:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177441 Section 13 of the Income-tax Act, 1922 requires income to be computed according to the assessee's regular method of accounting, but permits departure where that method does not truly reflect profits. The text explains that if stock valuation on the assessee's adopted basis distorts true income, the Income-tax Officer may substitute a proper basis to deduce profits correctly. It also notes that a departure in an earlier year from the regular cost method, by using market value for closing stock, was not binding as the regular accounting practice. On that reasoning, cost valuation for opening and closing stock was treated as the proper method, with rectification of the earlier assessment contemplated under Section 35. Case-Laws Income Tax Fri, 14 Dec 1945 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177441