India - Income Tax Act 2010 - Saarc

S. 145A I.T. ACT, 1961 1.672(2) The Central Government may notify in the Official Gazette 1 from time to timeaccounting standards to be followed by any class of assessees or in respect of anyclass of income.(3) Where the Assessing Officer is not satisfied about the correctness or completenessof the accounts of the assessee, or where the method of accountingprovided in sub-section (1) or accounting standards as notified under sub-section(2), have not been regularly followed by the assessee, the Assessing Officer maymake an assessment in the manner provided in section 144.]2[Method of accounting in certain cases.145A. Notwithstanding anything to the contrary contained in section 145,—(a) the valuation of purchase and sale of goods and inventory for thepurposes of determining the income chargeable under the head“Profits and gains of business or profession” shall be—(i) in accordance with the method of accounting regularly employedby the assessee; and(ii) further adjusted to include the amount of any tax, duty, cess or fee(by whatever name called) actually paid or incurred by the assesseeto bring the goods to the place of its location and condition as onthe date of valuation.Explanation.—For the purposes of this section*, any tax, duty, cess orfee (by whatever name called) under any law for the time being inforce, shall include all such payment notwithstanding any rightarising as a consequence to such payment;(b) interest received by an assessee on compensation or on enhancedcompensation, as the case may be, shall be deemed to be the income ofthe year in which it is received.]1. See Notification No. SO 69(E), dated 25-1-1996 for Notified Accounting Standards. Fordetails, see Taxmann’s Income-tax Rules.2. Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010. Prior to its substitution,section 145A, as inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999, read as under :‘145A. Method of accounting in certain cases—Notwithstanding anything to the contrarycontained in section 145, the valuation of purchase and sale of goods and inventory for thepurposes of determining the income chargeable under the head “Profits and gains ofbusiness or profession” shall be—(a) in accordance with the method of accounting regularly employed by the assessee;and(b) further adjusted to include the amount of any tax, duty, cess or fee (by whatevername called) actually paid or incurred by the assessee to bring the goods to the placeof its location and condition as on the date of valuation.Explanation.— For the purposes of this section, any tax, duty, cess or fee (by whatevername called) under any law for the time being in force, shall include all such paymentnotwithstanding any right arising as a consequence to such payment.’*Be read as ‘this clause’.