145A. Method of accounting in certain cases .-For the purpose of determining the income
chargeable under the head “Profits and gains of business or profession”, --
(i)the valuation of inventory shall be made at lower of actual cost or net realisable value
computed in accordance with the income computation and disclosure standards notified under
sub-section ( 2) of section 145; (ii)the valuation of purch ase and sale of goods or services and of inventory shall be adjusted to
include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred
by the assessee to bring the goods or services to the place of its location and con dition as on the date
of valuation; (iii)the inventory being securities not listed on a recognised stock exchange, or listed but not
quoted on a recognised stock exchange with regularity from time to time, shall be valued at actual
cost initially recognis ed in accordance with the income computation and disclosure standards notified
under sub -section ( 2) of section 145; (iv)the inventory being securities other than those referred to in clause ( iii), shall be valued at
lower of actual cost or net realisable value in accordance with the income computation and disclosure
standards notified under sub -section ( 2) of section 145:
Provided that the inventory being securities held by a scheduled bank or public financial
institution shall be valued in accordance wit h the income computation and disclosure standards
notified under sub -section ( 2) of section 145 after taking into account the extant guidelines issued by
the Reserve Bank of India in this regard:
Provided further that the comparison of actual cost and net realisable value of securities shall be
made category -wise.