1(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 2 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
completeness of the accounts of the assessee, or where the method of accounting
provided in sub-section (1) 3 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.
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1. Subs. by Act 22 of 1995, s. 31, for section 145 (w.e.f. 1-4-1997).
2. Subs. by Act 25 of 2014, s. 52, for "accounting standards" (w.e.f. 1-4-2015).
3. Subs. by s. 52, ibid., for "or accounting standards as notified under
sub-section (2), have not been regularly followed by the assessee" (w.e.f.
1-4-2015).
Section 144 Best judgment assessment
Section 144A Power of Joint Commissioner to issue directions in certain cases
Section 144BA Reference to Principal Commissioner or Commissioner in certain cases
Section 144C Reference to dispute resolution panel
Section 145 Method of accounting
Section 145A Method of accounting in certain cases
Section 147 Income escaping assessment
Section 148 Issue of notice where income has escaped assessment
Section 149 Time limit for notice
Section 150 Provision for cases where assessment is in pursuance of an order on appeal, etc