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TMI Blog2012 (9) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... is quantified and collected on the value (i.e. selling price) and that the valuation of unsold stock at the close of the accounting period determines the trading results of that period and cannot be regarded as source of profits. The entry for stock which appears in the trading account is intended to cancel the charge for the goods bought which have remained unsold which should represent the cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The question before us is whether the department is right in alleging that the closing stock is undervalued to the extent of Rs. 16,39,000/-? At the outset, it may be stated, that, it is not in dispute that the assessee has been following consistently the method of valuation of closing stock which is "cost or market price whichever is lower." Moreover, the AO conceded before the CIT(A) that h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the account at the time of the purchase, so that on cancelling out of the entries relating to the same stock from both sides of the account would leave only the transactions in which actual sales in the course of the year has taken place and thereby showing the profit or loss actually realized on the year's trading. The entry for stock which appears in the trading account is intended to cancel t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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