Sakthi Trading Co. VS. Commissioner Of Income-tax, Coimbatore

Extract

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Sakthi Trading Co. VS. Commissioner Of Income-tax, Coimbatore

CASE NO.: Appeal (civil) 3818 of 1999

PETITIONER: SAKTHI TRADING CO.

Vs.

RESPONDENT: COMMISSIONER OF INCOME-TAX, COIMBATORE

DATE OF JUDGMENT: 02/08/2001

BENCH: Y.K. Sabharwal & Brijesh Kumar

JUDGMENT: Y.K.SABHARWAL,J.

At the instance of the Revenue the question, in respect of the assessment year 1984-85, that was referred for the opinion of the High Court was : "Whether on the facts and in the circumstances of the case where on the dissolution of the firm the business is taken over by a partner without discontinuance and the value of the closing stock determined under the regular method of accounting is accepted by the partners in the settlement of accounts for dissolution purposes, the Income-tax Officer can substitute the market value in respect of the closing stock alone for the purpose of determining the income of the firm upto the date of dissolution?"

Briefly, the facts are as follows : The assessee is a registered firm. As a result of the death of one out of its six partn...

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