Section 73: Explanation Applies to Loss in Closing Stock Value

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Explanation to section 73 of the Income Tax Act applies to even when there is loss in valuation of  closing stock of shares held by a a company assessee. This view was upheld by Mumbai High court in Prasad Agents Pvt Ltd vs ITO 333 ITR 275 (BOM.)/[2009] . The facts of the case was that the assessee,…