Is 35AD Mandatory to follow for Companies (cold storage) under Income tax 1961, Income Tax

[prasadu naladala]

Hi,

We had a company name cold storage and they are receiving govt grant for that business.The cold storage come under 35AD of IT act 1961. now the problem is , Is it mandatory to prepare books of accounts for cold storage company under 35AD of act or can we follow on normal basis of accounting.

eg: construction cost for the cold storage is 7,00,00,000.for normal companies this amount will be shown under the assets side of B\S but under 35AD this fixed asset amount will be allowed as expenditure in P&L A|c.

now is it mandatory for cold storage to take entire 7,00,00,000 as expenditure in P&l need not to disclose in B|S