Method of accounting governs tax computation: cash or mercantile system, with standards and AO power to reassess. Income from business, profession or other sources is to be computed according to the cash or mercantile system regularly employed; the Central Government ... Summary
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Method of accounting governs tax computation: cash or mercantile system, with standards and AO power to reassess.
Income from business, profession or other sources is to be computed according to the cash or mercantile system regularly employed; the Central Government may notify income computation and disclosure standards for classes of assessees or income, and where accounts are incorrect, incomplete, irregularly followed, or not in accordance with notified standards, the Assessing Officer may make assessment by the alternative assessment procedure for unreliable accounts.
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