| COURT: | Andhra Pradesh High Court |
| CORAM: | Gudiseva Shyam Prasad J, Ramesh Ranganathan J |
| SECTION(S): | 145(2), 37(1) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Accounting Standards, Accrual, mercantile system of accounting |
| COUNSEL: | S. Ravi |
| DATE: | May 1, 2018 (Date of pronouncement) |
| DATE: | August 17, 2018 (Date of publication) |
| AY: | 1984-85 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 37(1)/145(2): Entire law on accrual of liability under mercantile system of accounting explained in the context of Accounting Standard 4 (AS-4) (contingencies and events occurring after the balance sheet date) issued by the ICAI and s. 211 of the Companies Act, 1956, after referring to all important judgements of the Supreme Court and High Courts | |
While the judgment in Challapalli Sugars Ltd is that of a two Judge bench of the Supreme Court, the judgment in Tutirorin Alkali Chemicals and Fertilizers Ltd is that of a three Judge bench of the Supreme Court. As the judgment in Challapalli Sugars Ltd was noticed by the Supreme Court, in its subsequent judgment in Tutirorin Alkali Chemicals and Fertilizers Ltd, the law declared in Challapalli Sugars Ltd, as explained in the subsequent judgment of the Supreme Court in Tutirorin Alkali Chemicals and Fertilizers Ltd, is binding on this Court. The law declared in Challapalli Sugars Ltd, as explained in Tutirorin Alkali Chemicals and Fertilizers Ltd, is that, in the absence of a provision in the Income-tax Act indicating the contrary, the rules of accountancy or the Accounting Standards framed by the Institute of Chartered Accountants of India can be adopted.
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