M/S. Dynamic Orthopedics P.Ltd vs Commissioner Of Income Tax, Kerala

The Supreme Court upheld the decision of the Income Tax Appellate Tribunal, affirming that the appellant, a private limited company, was justified in claiming depreciation as per Rule 5 of the Income Tax Rules, 1962, rather than the lower rates under Schedule XIV of the Companies Act, 1956. The Court clarified that Sections 349 and 350 of the Companies Act were not applicable to private limited companies, as per Section 355 of the 1956 Act. The appeal by the Department was dismissed, confirming the Tribunal's ruling on the matter.