2001 (8) TMI 269

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....r. 1990-91. The ground of appeal is as under: "The learned CIT(A)-V, Ahmedabad, has erred in law and on the facts of the case in confirming the order of the AO holding that the appellant-company has not valued its closing stock of securities as per its proper market value and therefore has erred in confirming the addition of Rs. 16,06,194 to the value of closing stock of securities." 2. The ....

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.... representative of the assessee Shri M.G. Patel, C.A. appeared on behalf of the assessee. He contended that the assessee maintained a proper books of accounts which was subject to tax audit and audit by the Comptroller and Auditor General of India. He pointed out that the method of valuation of closing stock of securities, "cost or market price whichever is lower" has been regularly followed. He d....

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....ccountants of India. The relevant portion is reproduced as under: "2. Shares, debentures and other securities held for sale in the ordinary course of business are disclosed as 'stock-in-trade' under the head 'current assets'. "Market value is the amount obtainable from the sale of an investment in an open market, net of expenses necessarily to be incurred on or before disposal." 4. The learn....

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....e price after deducting brokerage amount. The C & AG and AS 13 of the Institute of Chartered Accountants of India support the view of the assessee. After giving a deep and thoughtful consideration to the entire material, we are of the considered opinion that the market price which is concerned to the assessee should be the price after deduction of brokerage etc. because that was the net realised v....