1998 (12) TMI 44

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....ear 1984-85, the assessee had filed a return showing the income of Rs. 1,37,810 from its business in turmeric. The Income Tax Officer made the assessment under section 143(3) on 30-5-1984, accepting the income as returned. The Commissioner on a review of that assessment order, noticed that the assessee-firm had been dissolved on 6-2-1984, on the death of one of the partners of the firm and the fir....

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....ot require to be revised under section 263. On that, the reference has arisen and at the instance of the revenue the following question has been referred to this court for our opinion : "Whether, on the facts and in the circumstances of the case where on the dissolution of the firm the business is taken over by a partner without discontinuance and the value of the closing stock determined under....

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.... court has held that : "In the case of dissolution of a firm, the closing stock had to be valued at the market value. The mere fact that some of the other items had been left untouched could not be a justification for not valuing the closing stock at the market value on the dissolution of the firm." The Apex Court has held in the case of A. L. A. Firm v. CIT (1991) 189 ITR 285 (SC), that wit....