J.K.INDUSTRIES LTD. vs UNION OF INDIA .

The Supreme Court addressed the validity of Accounting Standard 22 (AS 22) concerning deferred taxation, determining that it is not inconsistent with the Companies Act, 1956 or the Income-tax Act, 1961. The Court held that AS 22, aimed at ensuring transparency and comparability in financial statements, aligns with the objectives of the Companies Act and does not violate constitutional provisions. The appeals challenging AS 22 were dismissed, affirming its mandatory application for companies listed on Stock Exchanges in India.