MALAYALA MANORAMA CO LTD. vs COMMR.OF INCOME TAX, TRIVANDRUM

The Supreme Court addressed whether the Income Tax Officer has the authority under Section 115J of the Income Tax Act, 1961 to adjust net profits of a company that consistently charged depreciation according to the Income-tax Rules, by substituting rates from Schedule XIV of the Companies Act, 1956. The Court held that such jurisdiction exists, affirming the principle that the Income Tax Act provisions take precedence in determining taxable income. The judgment clarified the relationship between the Income Tax Act and the Companies Act regarding depreciation rates and tax calculations.