2001 (10) TMI 1188

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....a poultry-farm. The birds as well as chicks were treated as stock-in-trade. After rejecting the assessee's claim that the chicks are capital assets, the Assessing Officer valued the stock of the chicks at market rate and the CIT(A) on appeal held that the chicks were assets. The Tribunal held that the chicks were not capital assets and that they form part of the stock, required to be valued on the....

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....he Revenue. 3. As regards the other question regarding the valuation of the stock of the chicks, the Tribunal's view cannot be sustained. It is settled law that in case of running business the stock-in-trade has to be valued either on cost basis or on the basis of market price, whichever is lower. The Apex Court recently had occasion to review the case law on this aspect in the case of Sakthi Tra....