Malayala Manorama Co. Ltd vs Commissioner Of Income Tax,Trivandrum

The Supreme Court addressed whether the Income Tax Officer could rework net profits of a company by substituting depreciation rates prescribed in Schedule XIV of the Companies Act, 1956, under Section 115J of the Income Tax Act, 1961. The Court held that the Income Tax Officer does not have such jurisdiction when the company has consistently charged depreciation at the rates prescribed in the Income-tax Rules. The judgment clarified the application of minimum tax provisions and the treatment of book profits, ultimately ruling in favor of the taxpayer.