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2004 (8) TMI 82 - HC - Income TaxContinuance of business even after dissolution of firm - respondent passed an order under section 263 setting aside the assessment order as it was prejudicial to the interests of the Revenue - According to the respondent, during the accounting year, the firm was dissolved and therefore, the closing stock should have been valued at market rate in view of the decision of the hon'ble Supreme Court in the case of A.L.A. Firm v. CIT - In these circumstances, it is not possible to state that the order of the Assessing Officer was in any manner prejudicial to the interests of the Revenue, there being no error in the assessment order. - The Tribunal was not right in law in upholding the exercise of revisional jurisdiction under section 263 of the Act. The Tribunal was also not right in law in holding that the closing stock had to be valued at market price on the basis of the ratio of the decision of the Supreme Court in A.L.A. Firm though the business was continued after the dissolution of the firm. – assessee’s appeal is allowed
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