MYSORE KIRLOSKAR LIMITED vs WORKERS OF THE MYSORE KIRLOSKAR LIMITED

The Supreme Court held that income-tax deductions must be calculated on the balance after deducting full statutory depreciation as per the Associated Cement Companies Ltd. case. The Court established that the return on working capital should be between 2 to 4%, at the Tribunal's discretion, and that borrowed amounts cannot be included in working capital for return calculations. Additionally, the Court ruled that evidence regarding prior charges for rehabilitation can be introduced in subsequent disputes over bonuses, even if not presented in the initial year.