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2012 Unit 5 Profit computation - s

Anaconda revenue canada v anaconda america brass co

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Unformatted text preview: evenue (Canada) v. Anaconda America Brass Co Ltd ((1956) 34 ATC America Brass Co Ltd 1956) 34 ATC 330. 330. 18 General Principles Where opening and closing stocks have been Where undervalued, the true profits can only be established undervalued the by raising both valuations (Ahmedabad New Cotton Mills Ltd v. Bombay Commissioners of Income Tax 8 Mills ATC 575). ATC Base stock method ( ) is not acceptable Base (Patrick v. Broadstone Mills Ltd (1954) 35 TC 44). (Patrick Basis of stock valuation should be consistently consistently applied (Duple Motor Bodies Ltd v. Ostime 39 TC (Duple 537). Changes are acceptable, provided that there are valid reasons, such as due to circumstance beyond the control of the taxpayer. control 19 Con’t Replacement basis is not acceptable (Freeman, Hardy & Willis v. Ridgeway 47 TC (Freeman, 519). 519). ‘Replacement cost’ = the estimated amount for Replacement which, in the ordinary course of business, the stock could be acquired / produced. stock 20 St...
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