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2014 (4) TMI 849 - HC - Income TaxValidity of order u/s 263 - valuation of stock on discontinuation one business of partnership firm – Book value or market value - Held that:- The entire discussion of A.L.A Firm case refers to different situations depending upon continuance of business or discontinuance of business - Though all partners are members of one family, so far as their tax liability, as an individual or as partners will not depend upon their relationship with each other, but depends upon the income they derive as their individual income whether through partnership or through other sources - if the firms were to transfer closing stock especially an item like gold, to an outsider, definitely book value will not be the value at which the stock would be transferred - partners are members of the same family, their liabilities and assets would depend upon their share capital etc.- it is not open to them to say that one of the partners being head of the family is continuing Dona Gold business as a proprietary concern at their choice, at what value they transfer the entire closing stock they have transferred - there is no justification in the stand of the assessee in contending that only the book value of closing stock has to be taken into consideration - the Tribunal was justified in rejecting the appeals – Decided against Assessee.
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