19 May 2008
THERE IS NO COMPULSION ABOUT FOLLOWING EITHER CASH OR ACCRUAL SYSTEM -ON ANY KIND OF INCOME TAX ASSESSEE. ONE MAY CHOOSE AS IT SUITS TO THE PARTICULAR ASSESSEE. ACCRUAL SYSTEM IS BETTER AS IT IS FLEXIBLE AND MORE LOGICAL AND SUITS A TYPICAL BUSINESS UNIT IRRESPECTIVE OF THE FACT THAT THE BUSINESS UNIT IS BEING PROPRIETARY,FIRM/CO. R.V.RAO