High Court rules on powers of the central government to notify ICDS to ensure they do not override binding judicial precedents or provisions of the Act

For corporate tax purposes in India, the Act provides that the taxable income of a taxpayer falling under the “Profits and Gains from Business and Profession” or “Income from Other Sources” heads shall be computed in accordance with either the cash or mercantile system of accounting, whichever is regularly employed by the taxpayer. The Act also empowers the central government to prescribe standards to be followed in computing such income.