THE AHMEDABAD MISCELLANEOUSINDUSTRIAL WORKERS' UNION vs THE AHMEDABAD ELECTRICITY CO. LTD.

The Supreme Court ruled that in calculating depreciation for the purpose of bonus under the Full Bench Formula, the provisions of the Income-tax Act should be applied rather than those in the Seventh Schedule of the Electricity (Supply) Act, 1948. The Court held that the respondent, an electricity company, was correct in its assertion that no surplus was available for bonus payment when calculated according to the Income-tax rules. The appeal by the Ahmedabad Miscellaneous Industrial Workers’ Union was dismissed, affirming the Industrial Court's decision.