https://www.taxtmi.com/caselaws?id=182685 The Madras High Court ruled in a case regarding the valuation of closing stock, emphasizing that it should be valued at either market value or cost price, whichever is lower, to reflect true profits and prevent taxation on unrealized gains. The court rejected the notion of valuing opening and closing stock at the same figure, highlighting the importance of choosing between cost price and market rate. Emphasizing adherence to established principles of accountancy, the court ruled against the assessee for not following commercial accountancy principles, affirming the need for accurate valuation to avoid taxation on potential profits. en-us Mon, 14 Apr 1952 00:00:00 +0530 Tue, 17 May 2016 16:42:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182685 The Madras High Court ruled in a case regarding the valuation of closing stock, emphasizing that it should be valued at either market value or cost price, whichever is lower, to reflect true profits and prevent taxation on unrealized gains. The court rejected the notion of valuing opening and closing stock at the same figure, highlighting the importance of choosing between cost price and market rate. Emphasizing adherence to established principles of accountancy, the court ruled against the assessee for not following commercial accountancy principles, affirming the need for accurate valuation to avoid taxation on potential profits. Case-Laws Income Tax Mon, 14 Apr 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182685