2002 (2) TMI 50

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....The question that is referred is as under: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the value of the stock at which the assessee-firm which was formed on the dissolution of an erstwhile firm took over the stock and adopted in its accounts as opening stock should be increased by Rs. 40,800 to bring it on par with the amo....

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....hen the closing stock of the erstwhile firm was assessed, the sum of Rs. 40,800 was added to it. This was while assessing the value of the closing stock as on January 31, 1982, when a partner died and the firm got dissolved. However, when the firm was assessed thereafter, this enhanced value of Rs. 40,800 was ignored. Inasmuch as while assessing the opening stock of the new firm that amount was ac....

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....tancy. Otherwise, there would be a total distortion of the profits of the business. I therefore accept the contentions of learned counsel for the appellant and direct the Assessing Officer to increase the value of the opening stock of the goods by the sum of Rs. 40,800 and allow consequential relief." It is obvious that the assessing authorities had enhanced the closing stock of the erstwhile f....