« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  Direct tax mop-up set to rise 40% for 2nd year in a row... 71% tax trauma for India Inc: Study... » SC upholds ICAIs norm on deferred tax liability November, 23rd 2007 The Supreme Court has upheld the validity of Accounting Standard 22 prescribed by the Institute of Chartered Accountants of India (ICAI) on deferred tax liability of listed companies. The apex court dismissed a bunch of petitions filed by various companies which had challenged mandatory adoption of the accounting system, saying that it is necessary in the era of mergers and acquisitions where fair valuation principles have an important role to play. Under AS 22 system it is necessary for the companies to give effect to the concept of true and fair accrual of accounts contemplated under section 211(1) of the Companies Act. A bench comprising Justice SH Kapadia and Justice BS Reddy said that it is different from the concept of true and correct principle as the fair valuation principle brings out the real income of the company. We are of the view that the AS 22 is neither ultra vires nor inconsistent with the provisions of the Companies Act including Schedule VI, the court said.The objective behind the accounting standard is to evolve methods for more transparency and leave less room for subjective selection of methods. It is also aimed at providing for more attention to quality of estimates used in arriving at accounting income, the court said. Such a system is necessary in an era of globalisation as the new system is in sync with the international accounting standards. The Indian Accounting Standards (IAS) have to harmonise and integrate with the International Accounting Standards by which harmonisation of various accounting policies, practices and principles could take place, court said. Today we are living in the world of globalisation in which apart from merger, acquisition play an important role. The buyer wants to know the income and liabilities of a company. He wants to know the real income of the company which he proposes to buy. Because of the difference in the rates of depreciation statutorily prescribed under the income Tax Act and the Companies Act, the concept of deferred taxation has been introduced in order to obliterate the difference between accounting depreciation and tax depreciation said Justice Kapadia.