98[Method
of accounting.99
145. (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 regularly99 employed by the assessee.
(2) The Central Government may notify in the Official Gazette1 from time to time accounting 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) or accounting standards as notified
under sub-section (2), have not been regularly followed by the assessee, the
Assessing Officer may make an assessment in the manner provided in section 144.]
