https://www.taxtmi.com/caselaws?id=285316 The Appellate Tribunal ITAT Madras ruled in a case concerning the valuation of closing stock on the dissolution of a firm. The Tribunal held that the stock should be valued at cost, not market value, to avoid taxing unrealized profits. It emphasized the need for real and realized profits to be taxed, rejecting the notion of taxing notional profits. The Tribunal allowed the appeal, directing the Income Tax Officer to recalculate the total income and adjust the partners' assessments accordingly. en-us Fri, 30 Oct 1992 00:00:00 +0530 Tue, 07 Jan 2020 17:06:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285316 The Appellate Tribunal ITAT Madras ruled in a case concerning the valuation of closing stock on the dissolution of a firm. The Tribunal held that the stock should be valued at cost, not market value, to avoid taxing unrealized profits. It emphasized the need for real and realized profits to be taxed, rejecting the notion of taxing notional profits. The Tribunal allowed the appeal, directing the Income Tax Officer to recalculate the total income and adjust the partners' assessments accordingly. Case-Laws Income Tax Fri, 30 Oct 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285316