88+ Lawyers are online 
INCOME TAX SECTION 145 - Method of accounting
Description
(1) Income chargeable under the head "Profits and gains of business or profession" or "Income from other sources" shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee.
(2) The Central Government may notify in the Official Gazette from time to time income computation and disclosure standards to be followed by any class of assessees or in respect of any class of income.
(3) Where the Assessing Officer is not satisfied about the correctness or comp-leteness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) has not been regularly followed by the assessee, or income has not been computed in accordance with the standards notified under sub-section (2), the Assessing Officer may make an assessment in the manner provided in section 144.
Click here to read more from the Income Tax Act
Related Questions
How can I quash the FIR by compromise with the complainant?
I have come to terms with the person who had filed a criminal complaint against me and now they are willing to compromise with me. How can the FIR aga…
When and where can I apply for anticipatory bail?
When and where can I apply for an anticipatory bail in case someone has filed criminal complaint against me and Police may have registered an FIR?…
How can I get bail in a non bailable offence?
I have been framed in a case by some people and the Police is saying that the charges against me are non bailable in nature. How can I get bail in a n…
In how much time is a bail / anticipatory bail granted?
If we apply for an anticipatory bail or a regular bail, in how much time can this be granted?…
