"For relationships between chakra natures, there is a principle known as counterbalancing (相殺, Sōsai). This principle states that two techniques of the same nature would cancel each other out if the same amount of chakra was put into them. For example, in Kakashi's fight with Kakuzu, he was able to cancel Kakuzu's Lightning Release: False Darkness by deflecting it with his own technique, the Lightning Cutter.
However, if one of the techniques had more chakra put into it, it would overcome the other technique. Not only that, but the stronger technique would absorb the weaker one, and the user of the weaker technique would receive more damage than the original amount, as he will have added to the technique. For example, in Sasuke's fight with Itachi, they both use the Fire Release: Great Fireball Technique against each other, and Sasuke's technique begins to overwhelm Itachi's as he activates his Cursed Seal of Heaven. Itachi would have been hit by both his own technique as well as Sasuke's. Itachi responds to this by using Amaterasu, the highest level Fire Release technique, which absorbs all the fire previously created by the two techniques, growing into a large mass of black flames.[4]"
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