Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

Manual - Introduction - Income computation and disclosure standards (ICDS)

Normally, since ICDS have been based on AS, the AS interpretation would apply, where such term/phrase has also been used in the ICDS. In other cases, the tax law interpretation given to it by the courts would prevail.

However, where the specific provisions / requirements as per the current ICDS, in personal view of the author, is inconsistent with the earlier decisions or judgements, than the provisions of ICDS would prevail unless and until declared ultra-virus by the competent court or authority.

Dated: 19-8-2017