https://www.taxtmi.com/caselaws?id=27999 A bona fide and permanent change in stock valuation from total cost to direct cost, adopted under recognised commercial practice and the mercantile system, could be applied to closing stock for the year of change without revaluing opening stock. The Court held that any temporary revenue impact from the first-year transition did not invalidate the method, because the distortion would adjust in later years and the revised basis remained sound accounting practice. The addition made by the Revenue on the valuation difference was therefore not sustainable. en-us Wed, 03 Aug 1983 00:00:00 +0530 Fri, 31 Oct 2025 08:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27999 A bona fide and permanent change in stock valuation from total cost to direct cost, adopted under recognised commercial practice and the mercantile system, could be applied to closing stock for the year of change without revaluing opening stock. The Court held that any temporary revenue impact from the first-year transition did not invalidate the method, because the distortion would adjust in later years and the revised basis remained sound accounting practice. The addition made by the Revenue on the valuation difference was therefore not sustainable. Case-Laws Income Tax Wed, 03 Aug 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27999