Showing posts with label Valuation of stock. Show all posts
Showing posts with label Valuation of stock. Show all posts

Tuesday, June 14, 2011

Closing stock of an erstwhile firm converted into stock-in-trade by a propr


IT : Closing stock of an erstwhile firm converted into stock-in-trade by a proprietorship concern will have to be valued at the market value
Income-tax : On dissolution of a firm closing stock has to be valued on the basis of real value i.e., market value, which is independent of the fact whether or not the erstwhile partners of a dissolved firm continue to do business with assets received on dissolution [Section 145 of the Income-tax Act, 1961 - Method of accounting - Valuation of stock] - [2011] 10 taxmann.com 126 (Delhi)

Saturday, June 11, 2011

Closing stock of an erstwhile firm converted into stock-in-trade

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Closing stock of an erstwhile firm converted into stock-in-trade by a proprietorship concern will have to be valued at the market value.


Income-tax : On dissolution of a firm closing stock has to be valued on the basis of real value i.e., market value, which is independent of the fact whether or not the erstwhile partners of a dissolved firm continue to do business with assets received on dissolution [Section 145 of the Income-tax Act, 1961 - Method of accounting - Valuation of stock] - [2011] 10 taxmann.com 126 (Delhi)
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