https://www.taxtmi.com/caselaws?id=22960 The High Court held that upon the dissolution of a firm, the valuation of closing stock should be based on market value as on the date of dissolution, rather than the cost. The court emphasized the importance of valuing assets at their money value for accurate profit determination, disregarding any agreed-upon valuations by partners. It rejected arguments regarding the impact of business continuation by a third party post-dissolution and affirmed the need to value closing stock at market rate. The judgment favored the Revenue, highlighting the necessity of adhering to established valuation principles for income tax purposes. en-us Fri, 11 Jan 1991 00:00:00 +0530 Tue, 15 Dec 2009 15:53:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22960 The High Court held that upon the dissolution of a firm, the valuation of closing stock should be based on market value as on the date of dissolution, rather than the cost. The court emphasized the importance of valuing assets at their money value for accurate profit determination, disregarding any agreed-upon valuations by partners. It rejected arguments regarding the impact of business continuation by a third party post-dissolution and affirmed the need to value closing stock at market rate. The judgment favored the Revenue, highlighting the necessity of adhering to established valuation principles for income tax purposes. Case-Laws Income Tax Fri, 11 Jan 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22960