STANDARD TRIUMPH MOTOR CO. LTD. vs COMMISSIONER OF INCOME TAX, MADRAS

The Supreme Court addressed the taxation of a non-resident company under the Income Tax Act, 1961, specifically Sections 5(2) and 145. The Court held that the method of accounting adopted by the assessee was mercantile, and since the royalty income was disclosed in the returns, it was taxable despite the assessee's claim of a cash basis for later years. The Court affirmed the assessments for the years 1967-68 and 1968-69, ruling that the assessee could not change its accounting method without the Income Tax Officer's approval, leading to the dismissal of the appeals.