Showing posts with label Closing Stock. Show all posts
Showing posts with label Closing Stock. Show all posts

Saturday, May 21, 2011

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

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)