https://www.taxtmi.com/caselaws?id=12042 On dissolution of a firm, closing stock could not be revalued at market price where the partners continued the business in the same name under a fresh partnership deed, as there was no cessation of business. The governing valuation principle remained cost or market price, whichever is lower. Since the book value reflected the lower figure, there was no basis to substitute the higher market value merely because dissolution accounts were prepared. The closing stock therefore did not require revaluation at market price, and the issue was decided in favour of the assessee and against the Revenue. en-us Wed, 25 Sep 2002 00:00:00 +0530 Tue, 16 Feb 2010 12:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12042 On dissolution of a firm, closing stock could not be revalued at market price where the partners continued the business in the same name under a fresh partnership deed, as there was no cessation of business. The governing valuation principle remained cost or market price, whichever is lower. Since the book value reflected the lower figure, there was no basis to substitute the higher market value merely because dissolution accounts were prepared. The closing stock therefore did not require revaluation at market price, and the issue was decided in favour of the assessee and against the Revenue. Case-Laws Income Tax Wed, 25 Sep 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12042