2002 (9) TMI 54

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..... nstance of the Revenue, for our consideration is: "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?" The assessment year is 1985-86. The assessee is .....

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..... the assessee met with success before the Tribunal on further appeal. The Supreme Court has recently pronounced on this question in the case of Sakthi Trading Co. v. CIT [2001] 250 ITR 871. It was held therein 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 lowe .....

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