CIT v. Birla Gwalior (P.) Ltd.

89 ITR 266Supreme Court of India1973#1377 most cited

What is CIT v. Birla Gwalior (P.) Ltd. authority for?

The Supreme Court holds that income tax is levied on real income, not on hypothetical or notional accrual. For income to be taxable, it must genuinely accrue or be received, taking into account the realistic probability of its realization.

83

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2010 to 2025.

Also referred to as

CIT v. Birla Gwalior (P) Ltd. · 89 ITR 266 · real income theory · hypothetical income · notional income · real accrual of income · taxability of income · probability of realization · Section 28 income

Sections most often in play

Section 143(3)Section 147Section 148Section 143(1)Section 144Section 145Section 145(2)Section 145A
Read the full judgment

Issues it is cited on

section 28(iv)right to receivesurrender of incomemercantile system of accountingloose paperssection 28section 234aincome-tax officersection 133asection 131section 115bbesection 139(1)

Judgments citing CIT v. Birla Gwalior (P.) Ltd.

M/s. De vs. ons Pvt. Ltd

ITA/296/2006HC Delhi29 Nov 2010
Section 133(6)Section 271

…ne without disregarding statutory language.” 21. The aforesaid view of the Bombay High Court was approved by the Supreme Court in a number of subsequent decisions including Commissioner of Income-tax, West Bengal II vs. Birla Gwalior (P.) Ltd. (1973) 89 ITR 266. In the said case the Supreme Court after referring to its earlier decision in Morvi Industries Ltd. vs. 2010:DHC:5727-DB ITA No.367/2004 & 296/2006 Page 23 of 42 Commissioner of Income-tax (1971) 82 ITR 835, which was also a case where the mercantile system of acco…

M/S De vs. Ons Pvt Ltdvs.Commissioner of Income Tax &

ITA - 367 / 2004HC Delhi19 Nov 2010
Section 133(6)Section 271

…ne without disregarding statutory language.” 21. The aforesaid view of the Bombay High Court was approved by the Supreme Court in a number of subsequent decisions including Commissioner of Income-tax, West Bengal II vs. Birla Gwalior (P.) Ltd. (1973) 89 ITR 266. In the said case the Supreme Court after referring to its earlier decision in Morvi Industries Ltd. vs. 2010:DHC:5593-DB ITA No.367/2004 & 296/2006 Page 23 of 42 Commissioner of Income-tax (1971) 82 ITR 835, which was also a case where the mercantile system of acco…

M/s. De vs. ons Pvt. Ltd

ITA/367/2004HC Delhi19 Nov 2010
Section 133(6)Section 271

…ne without disregarding statutory language.” 21. The aforesaid view of the Bombay High Court was approved by the Supreme Court in a number of subsequent decisions including Commissioner of Income-tax, West Bengal II vs. Birla Gwalior (P.) Ltd. (1973) 89 ITR 266. In the said case the Supreme Court after referring to its earlier decision in Morvi Industries Ltd. vs. 2010:DHC:5593-DB ITA No.367/2004 & 296/2006 Page 23 of 42 Commissioner of Income-tax (1971) 82 ITR 835, which was also a case where the mercantile system of acco…