https://www.taxtmi.com/caselaws?id=5764 A banking company's statutory balance-sheet format under the Banking Regulation Act did not control income-tax computation where the assessee regularly followed the mercantile system and a recognised method of valuing investments at cost or market value, whichever is lower. The accepted commercial principle is that unrealised loss may be anticipated while unrealised profit is not taxed, so entries in the regulatory balance-sheet were not conclusive of real income. Section 145(1) permitted the use of the regularly employed accounting method unless it failed to disclose proper income, and a consistent method could not be rejected merely because the statutory balance-sheet showed cost values. en-us Wed, 29 Sep 1999 00:00:00 +0530 Wed, 08 Oct 2025 20:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5764 A banking company's statutory balance-sheet format under the Banking Regulation Act did not control income-tax computation where the assessee regularly followed the mercantile system and a recognised method of valuing investments at cost or market value, whichever is lower. The accepted commercial principle is that unrealised loss may be anticipated while unrealised profit is not taxed, so entries in the regulatory balance-sheet were not conclusive of real income. Section 145(1) permitted the use of the regularly employed accounting method unless it failed to disclose proper income, and a consistent method could not be rejected merely because the statutory balance-sheet showed cost values. Case-Laws Income Tax Wed, 29 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5764