J. K. Industries Ltd. & Anr vs Union Of India & Ors

The Supreme Court addressed whether Accounting Standard 22 (AS 22) on deferred taxation is inconsistent with the Companies Act, 1956, the Income-tax Act, 1961, and the Constitution of India. The Court held that AS 22, aimed at ensuring transparency and comparability in financial statements, is valid and does not contravene the aforementioned statutes. The judgment affirmed the mandatory application of AS 22 for companies listed on Stock Exchanges in India, thereby upholding the authority of the Institute of Chartered Accountants of India in setting accounting standards.