<h1>Supreme Court Confirms AS 22's Consistency with Companies Act 1956; Avoids Comment on Constitutional Validity Under Articles 14, 19(1)(g.</h1> The Supreme Court has ruled that Accounting Standard 22 (AS 22), which addresses accounting for taxes on income, is not inconsistent with the Companies Act, 1956, or ultra vires. The Court examined various aspects, including the meaning and purpose of AS 22, its introduction, and its alignment with the Companies Act and related rules. It concluded that deferred tax arises from differences between accounting and tax profits due to varying treatment of revenue and expenses. While the Court upheld AS 22, it refrained from commenting on its constitutional validity concerning Articles 14 and 19(1)(g) of the Indian Constitution.