https://www.taxtmi.com/caselaws?id=49366 Section 13 of the Indian Income-tax Act, 1922 permits business income to be computed according to the regularly employed method of accounting only when that method can properly disclose true profits. Where a cash-basis account omits closing stock while debiting the cost at the start of the year, it may distort trading results by converting profit into capital recoupment. In a trading venture, stock-in-trade is essential to accurate profit computation, so the tax authority may value closing stock and adjust the accounts to reflect real business income. en-us Thu, 16 Apr 1964 00:00:00 +0530 Sat, 23 Aug 2014 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49366 Section 13 of the Indian Income-tax Act, 1922 permits business income to be computed according to the regularly employed method of accounting only when that method can properly disclose true profits. Where a cash-basis account omits closing stock while debiting the cost at the start of the year, it may distort trading results by converting profit into capital recoupment. In a trading venture, stock-in-trade is essential to accurate profit computation, so the tax authority may value closing stock and adjust the accounts to reflect real business income. Case-Laws Income Tax Thu, 16 Apr 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49366