https://www.taxtmi.com/caselaws?id=9791 The High Court upheld the Income-tax Appellate Tribunal's decision that the closing stock in a case of converting a proprietary business into a partnership firm should be valued at cost or market price, whichever is lower, as there was no cessation of business. The court ruled that the nominal value credited to the capital account in the partnership firm was not the consideration for the transfer, and valuation at market price was only necessary if the business had permanently closed. The decision favored the assessee, and the court answered the question of law in the affirmative against the Revenue. en-us Wed, 08 Feb 2006 00:00:00 +0530 Tue, 20 Sep 2011 18:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9791 The High Court upheld the Income-tax Appellate Tribunal's decision that the closing stock in a case of converting a proprietary business into a partnership firm should be valued at cost or market price, whichever is lower, as there was no cessation of business. The court ruled that the nominal value credited to the capital account in the partnership firm was not the consideration for the transfer, and valuation at market price was only necessary if the business had permanently closed. The decision favored the assessee, and the court answered the question of law in the affirmative against the Revenue. Case-Laws Income Tax Wed, 08 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9791