https://www.taxtmi.com/caselaws?id=6166 SC upheld the Assessing Officer and HC: the AO validly rejected the assessee's method under s.145 because the closing stock was valued at market when market exceeded cost, producing notional profit to secure tax benefits. Courts held that regularly employed accounts must reflect true income; closing stock must be valued at cost or at market only if market is lower. As the notional profit was unrealized, the AO could apply a different accounting method to deduce chargeable income. Appeals dismissed with no order as to costs. en-us Thu, 24 Nov 2005 00:00:00 +0530 Fri, 19 Sep 2025 18:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6166 SC upheld the Assessing Officer and HC: the AO validly rejected the assessee's method under s.145 because the closing stock was valued at market when market exceeded cost, producing notional profit to secure tax benefits. Courts held that regularly employed accounts must reflect true income; closing stock must be valued at cost or at market only if market is lower. As the notional profit was unrealized, the AO could apply a different accounting method to deduce chargeable income. Appeals dismissed with no order as to costs. Case-Laws Income Tax Thu, 24 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6166