https://www.taxtmi.com/caselaws?id=182800 Item-wise stock valuation followed regularly in the accounts could not be displaced by an aggregate basis merely because some articles would show a notional profit at market value. Trading profits are to be computed under the method of accounting regularly employed, unless that method fails to deduce true profits. The accepted commercial rule permits valuation of stock-in-trade at cost or market value, whichever is lower, and supports recognition of unrealised loss but not unrealised profit. Accordingly, the assessee could value closing stock item-wise at the lower of cost or market value, and the departmental objection to that method failed. en-us Thu, 12 Aug 1948 00:00:00 +0530 Thu, 19 May 2016 18:02:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182800 Item-wise stock valuation followed regularly in the accounts could not be displaced by an aggregate basis merely because some articles would show a notional profit at market value. Trading profits are to be computed under the method of accounting regularly employed, unless that method fails to deduce true profits. The accepted commercial rule permits valuation of stock-in-trade at cost or market value, whichever is lower, and supports recognition of unrealised loss but not unrealised profit. Accordingly, the assessee could value closing stock item-wise at the lower of cost or market value, and the departmental objection to that method failed. Case-Laws Income Tax Thu, 12 Aug 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182800