3B. Adjustments in the value of an asset, disclosed in the balance-sheet.
(1)The value of an asset disclosed in the balance-sheet shall be taken to be--(a)in the case of an asset on which depreciation is admissible, its written-down value;(b)in the case of an asset on which no depreciation is admissible, its book value;(c)in the case of closing stock, its value adopted for the purposes of assessment under the Income-tax Act, 1961 for the previous year relevant to the corresponding assessment year.(2)Notwithstanding anything contained in sub-rule (1) where the market value of an asset exceeds its written down value or its book value or the value adopted for purposes of assessment under the Income-tax Act, 1961, as the case may be, by more than 20 per cent, the value of that asset shall, for the purposes of rule 2A, be taken to be its market value.
