https://www.taxtmi.com/caselaws?id=345508 The SC held that revision under Section 263 was not justified where the Assessing Officer accepted closing stock valuation at cost price. The partnership firm dissolved upon a partner's death, but business continued as the surviving partner inherited the deceased partner's share. The court ruled that when business operations continue without actual sale of assets including stock-in-trade, market price valuation is unnecessary. The Assessing Officer's acceptance of book value for stock-in-trade was deemed a plausible and permissible view under these circumstances. Since the assessment order reflected a reasonable interpretation, the CIT lacked grounds to invoke Section 263 powers for being erroneous and prejudicial to revenue interests. The decision favored the assessee, establishing that continuing business operations justify cost price valuation over market pricing for closing stock. en-us Tue, 21 Mar 2017 00:00:00 +0530 Mon, 22 Jun 2026 14:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=345508 The SC held that revision under Section 263 was not justified where the Assessing Officer accepted closing stock valuation at cost price. The partnership firm dissolved upon a partner's death, but business continued as the surviving partner inherited the deceased partner's share. The court ruled that when business operations continue without actual sale of assets including stock-in-trade, market price valuation is unnecessary. The Assessing Officer's acceptance of book value for stock-in-trade was deemed a plausible and permissible view under these circumstances. Since the assessment order reflected a reasonable interpretation, the CIT lacked grounds to invoke Section 263 powers for being erroneous and prejudicial to revenue interests. The decision favored the assessee, establishing that continuing business operations justify cost price valuation over market pricing for closing stock. Case-Laws Income Tax Tue, 21 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=345508