THE SREE MEENAKSHI MILLS, LTD. vs THEIR WORKMEN(and connected appeals)

The Supreme Court held that not all depreciation admissible under the Income-tax Act can be deducted as prior charges when determining the available surplus for bonus payments. Specifically, initial and additional depreciation are considered abnormal additions and should not be prioritized over normal depreciation. The Court affirmed that the Labour Appellate Tribunal has the power to review its own orders, and the method used by industrial tribunals to determine trading profits does not align with the Income-tax Act's provisions. The appeal was dismissed, upholding the tribunal's decision to award bonus to the workmen.