https://www.taxtmi.com/caselaws?id=161971 Section 13 of the Indian Income-tax Act, 1922 treats the assessee's regularly employed accounting method as the normal basis for computing business income, but only so long as true income, profits and gains can properly be deduced from it. If the accounts do not disclose taxable profit, the Income-tax Officer must examine whether a correct computation can still be made from those books and cannot treat audited book figures as binding merely because the method is regular. The text notes that the authorities had failed to apply this statutory judgment and that the accounts showed undervaluation of stock and a secret reserve, indicating that the profit and loss account did not reflect true taxable income. en-us Fri, 05 Nov 1937 00:00:00 +0530 Thu, 13 Feb 2014 16:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161971 Section 13 of the Indian Income-tax Act, 1922 treats the assessee's regularly employed accounting method as the normal basis for computing business income, but only so long as true income, profits and gains can properly be deduced from it. If the accounts do not disclose taxable profit, the Income-tax Officer must examine whether a correct computation can still be made from those books and cannot treat audited book figures as binding merely because the method is regular. The text notes that the authorities had failed to apply this statutory judgment and that the accounts showed undervaluation of stock and a secret reserve, indicating that the profit and loss account did not reflect true taxable income. Case-Laws Income Tax Fri, 05 Nov 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161971