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2002 (9) TMI 54 - MADRAS HIGH COURT"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the fair market value of the closing stock as against the book value agreed upon by the partners should not be adopted when the firm was dissolved and dissolution accounts drawn up?" – Held that where there is no cessation of business, the closing stock ought to be valued at cost or market price, whichever is lower. The assessee in this case having taken the cost which was lower than the market price, there was no scope for revising the value of the closing stock upward on the ground that the market price was higher. The question referred to us is, therefore, answered in favour of the assessee and against the Revenue.
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