Allowing the appeal of the assessee the Court held that ; in books of account, assessee valued stock of shares and securities on cost basis however since price of those shares fell during relevant year, assessee suffered huge loss .Accordingly in return of income, assessee valued closing stock on market value or cost, whichever was lower basis. Court held that in view of fact that changed method of valuation of closing stock i.e. cost or market price whichever was lower would determine income/loss correctly, impugned order passed by authorities below was to be set aside . (AY. 1990-91)
United Bank of India v. CIT (2018) 257 Taxman 306 (Cal.)(HC)
S. 145 : Method of accounting – Bank- Valuation of shares and securities of public Ltd Companies -Books at cost and in the return cost or market value which ever is less- changed method of valuation of closing stock i.e. cost or market price whichever was lower would determine income/loss correctly- Order of Tribunal was set aside .