In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

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

Circular No. 10/2017 - Dated: 23-3-2017 - Clarifications on Income Computation and Disclosure Standards (ICDS) notified under section 145(2) of the Income-tax Act, 1961

These ICDS are sub-ordinate provisions to the parent Income Act, 1961 and have been issued in exercise of powers u/s 145(2) which does not have overriding effect.

Therefore, CBDT has rightly clarified that, ICDS provides general principles for computation of income. In case of conflict, if any, between the provisions of Rules and ICDS, the provisions of Rules, which deal with specific circumstances, shall prevail.

Dated: 19-8-2017