CIT v. Excel Industries Ltd.

358 ITR 295Supreme Court of India2013#49 most cited

What is CIT v. Excel Industries Ltd. authority for?

When an income or expenditure is revenue neutral across different assessment years, where any benefit derived is offset by a corresponding liability or reversal, no additional tax liability arises, particularly concerning income recognition under the mercantile system of accounting.

935

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Excel Industries Ltd. · Excel Industries Ltd SC 2013 · Revenue Neutral principle · mercantile system of accounting · right to receive income · taxability of revenue neutral transactions · Section 147 Income Tax Act · reassessment · Section 148 Income Tax Act · profits and gains of business or profession · no tax liability revenue neutral · income accrual reversal

Also reported as

38 Taxmann.com 100219 Taxmann 379

Sections most often in play

Section 143(3)Section 37(1)Section 147Section 14ASection 132Section 153ASection 1961Section 148
Read the full judgment

Issues it is cited on

right to receivemercantile system of accountingrule of consistencysection 35profits and gains of business or professionrevenue expenditureliable to taxsection 80isection 37(1)section 28section 32capital expenditure

Judgments citing CIT v. Excel Industries Ltd.

Bharti Telemedia Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4960/DEL/2024[2020-21]Status: DisposedITAT Delhi12 Dec 2025AY 2020-21

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…is to take contrary stands in different years. Thus, no disallowance is called for even on principles of consistency. Reliance in this regard is placed on the following cases: - Radhasoami Satsang v. CIT 193 ITR 321(SC) - CIT vs. Excel Industries (P) Limited: 358 ITR 295 (SC) - Shasun Chemicals & Drugs Ltd. vs. CIT: 388 ITR 1 (SC) - DIT (E) v. Apparel Export Promotion Council: 244 ITR 734 (Del) - CIT v. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) - CIT v. Girish Mohan Ganeriwala: 260 ITR 417 (P&H) - CIT V. Dalmia Promoters Developers (P) Ltd: 200 CTR 426 (Del.) - Escorts Cardiac Diseases Hospital: 300 ITR 75 (Del) -…

DCIT, Circle 4(2), New Delhi vs. Ms Bharti Telemedia Ltd, New Delhi

In the result, the appeals of the Assessee are allowed and appeals of the Revenue are dismissed

ITA 4868/DEL/2024[2016-17]Status: DisposedITAT Delhi12 Dec 2025AY 2016-17

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 35ASection 4

…is to take contrary stands in different years. Thus, no disallowance is called for even on principles of consistency. Reliance in this regard is placed on the following cases: - Radhasoami Satsang v. CIT 193 ITR 321(SC) - CIT vs. Excel Industries (P) Limited: 358 ITR 295 (SC) - Shasun Chemicals & Drugs Ltd. vs. CIT: 388 ITR 1 (SC) - DIT (E) v. Apparel Export Promotion Council: 244 ITR 734 (Del) - CIT v. Neo Polypack (P) Ltd: 245 ITR 492 (Del.) - CIT v. Girish Mohan Ganeriwala: 260 ITR 417 (P&H) - CIT V. Dalmia Promoters Developers (P) Ltd: 200 CTR 426 (Del.) - Escorts Cardiac Diseases Hospital: 300 ITR 75 (Del) -…

M/S. Bengal Omnitech Nirman Ltd., Kolkata vs. A.C.I.T./I.T.O., Ward - 8(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1551/KOL/2024[2018-2019]Status: DisposedITAT Kolkata02 Dec 2025AY 2018-2019

Bench: Shri Rajesh Kumar, Am & Shripradip Kumar Choubey, Jm

For Appellant: S/Shri S.M. Surana &For Respondent: Shri Pankaj Pandey, DR
Section 36(1)(vii)

…ntractors Pvt. Itd. 318 ITR 204 (SC). Further, when there is no revenue effect the mater and the addition is revenue neutral, no addition should be made and should not be disputed by revenue as has been held in the case of CIT vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC)/[2013] 262 CTR 261 (SC)[08-10-2013]. 6. 3. Considering the above facts and circumstances and also the relying on the decisions of Hon'ble Supreme Court, the appeal of the assessee is allowed. 7. The issue raised in ground no.5 is against the confirmation of addition of ₹2,57,290/- as made by the Id. AO on account of service tax and ₹1,560 /…

Deputy Commissioner of Income Tax-6, Lucknow vs. M/S. U.P. State Construction & Infrastructure Development Corporation Limited, Lucknow

ITA 617/LKW/2019[2014-15]Status: DisposedITAT Lucknow28 Nov 2025AY 2014-15

Bench: Shri Anadee Nath Misshra & Shri Subhash Malguria

Section 143Section 143(3)Section 251Section 263

…The liability for provision of salary and incentive allowance is based on the Instructions issued by the Govt. of U.P. which amounts to Rs. 3,28,55,000/-and therefore it cannot be said that the liability is unascertained. CIT vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC) The Hon'ble Supreme Court emphasized the principle of consistency, holding that if a certain view has been accepted in earlier years by the Revenue and there is no change in facts or law, a contrary view should not be taken in subsequent years. A copy of the judgment is attached as Annexure N. (3) Ground Number 3 (raised by Dy. Commissioner…

Shree Khedut Sahakari Khand Udyog Mandli Ltd., Bardoli vs. Income Tax Officer, Ward-1, Bardoli

ITA 738/SRT/2023[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of 5 consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

ACIT, Na vs. Ari Circle, Navsarivs.M/S. Maroli Vibhag Khand Udyog Sahakari Mandali Ltd., Navsari

ITA 225/SRT/2020[2014-15]Status: DisposedITAT Surat25 Nov 2025AY 2014-15

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…he final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

ACIT, Na vs. Ari Circle., Navsarivs.M/S. Maroli Vibhag Khand Udyog Sahakari Mandali Ltd, Navasari

ITA 224/SRT/2020[2013-14]Status: DisposedITAT Surat25 Nov 2025AY 2013-14

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…he final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

ACIT, Na vs. Ari Circle, Navsarivs.M/S. Maroli Vibhag, Kand Udyog Sahakari Mandali Ltd., Navsari

ITA 222/SRT/2020[2011-12]Status: DisposedITAT Surat25 Nov 2025AY 2011-12

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…he final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

Sahakari Khand Uduog Mandal Ltd., Na vs. Arivs.DCIT, Navsari Circle, Navsari

ITA 213/SRT/2020[2013-14]Status: DisposedITAT Surat25 Nov 2025AY 2013-14

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…he final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

Sahadari Khand Udyog Mandal Ltd., Na vs. Arivs.ACIT, Navsari Circle, Navsari

ITA 212/SRT/2020[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…he final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

Sahakari Khand Udyog Mandal Ltd., Gandevi vs. ACIT, Navsari Circle, Navsari

ITA 211/SRT/2020[2011-12]Status: DisposedITAT Surat25 Nov 2025AY 2011-12

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

…he final sugarcane price, etc. and therefore, the AO's inference for making disallowance of portion of the cane price, in pure violation of "rule of consistency" and thus, offended the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. (2013) 358 ITR 295 (SC) holding that the Revenue must of consistent and not flip flop on the same issue in different assessment years, is unjustified, without jurisdiction, bad in law and hence, liable to be struck down. 8. On the facts and in the circumstances of the case as well in law, the CIT (Appeals) has erred in upholding the AO's order u/s 143(3) r.w.s. 25…

Wheatons Design Private Limited, Jaipur vs. ACIT / DCIT, Circle -6, Jaipur

In the result, appeal of the assessee is allowed

ITA 781/JPR/2025[2014-15]Status: DisposedITAT Jaipur12 Nov 2025AY 2014-15

Bench: The Due Date Of Hearing.”

For Appellant: Shri P.C. Parwal, C.AFor Respondent: Mrs. Anita rinesh, JCIT-DR a
Section 143(3)Section 144BSection 147Section 148Section 250Section 37(1)

…he same, it makes no difference on the ex-chequer if the provision is disallowed in one year and allowed in the next year. In the connection reference is drawn to the decision of Hon’ble Supreme Court in case of CIT Vs. Excel Industries Ltd. (2013) 93 DTR 457/358 ITR 295 where at Para 32 it is held as under:- 32. Thirdly, the real question concerning us is the year in which the assessee is required to pay tax. There is no dispute that in the subsequent accounting year, the assessee did make imports and did derive benefits under the advance licence and the duty entitlement pass book and paid tax thereon. Therefore…

Shri Rajkot District Co-Operative Bank Ltd., Rajkot vs. The Deputy Commissioner of Income-Tax, Circle - 1(2), Rajkot

The appeal is dismissed

ITA 196/RJT/2024[2011-12]Status: DisposedITAT Rajkot04 Nov 2025AY 2011-12

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं./Ita No.196/Rjt/2024 ("नधा"रण वष" / Assessment Year: (2011-12) Shri Rajkot District Co-Operative Vs. The Deputy Commissioner Of Bank Ltd., Income-Tax, Circle-1(1), Jilla Bank Bhavan, Kasturba Road, Aayakar Bhavan, Race Course Ring Opp. Chaudhary High School, Road, Rajkot-360001 Rajkot-360001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Afups2094H (Appellant) (Respondent) Appellant By : Shri D.M. Rindani, Ld. Ar Respondent By : Smt. Pallavi, Ld. Cit(Dr) : 06/08/2025 Date Of Hearing Date Of Pronouncement : 04/11/2025 आदेश / O R D E R Per, Dinesh Mohan Sinha, Jm: Captioned Appeal Filed By The Assessee, Pertaining To Assessment Year (Ay)-2018-19, Is Directed Against The Order Passed By The Commissioner Of Income Tax Office [(In Short “Ld.Cit(A)”] Vide Order Dated 29.12.2023, Which In Turn Assessment Order Passed By Income Tax Department / Assessing Officer Under Section 144C(1) Of The Income Tax Act, 1961 (In Short “The Act”), Vide Order Dated 30.03.2023 2. Grounds Of Appeal Raised By The Assessee, Are As Follows:

For Appellant: Shri D.M. Rindani, Ld. ARFor Respondent: Smt. Pallavi, Ld. CIT(DR)
Section 143(3)Section 144C(1)Section 263Section 271(1)(c)Section 36(1)Section 36(1)(viia)

…आयकर अपीलीय अिधकरण, राजकोट "ायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER & SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.196/RJT/2024 ("नधा"रण वष" / Assessment Year: (2011-12) Shri Rajkot District Co-operative Vs. The Deputy Commissioner of Bank Ltd., Income-tax, circle-1(1), Jilla Bank Bhavan, Kasturba Road, Aayakar Bhavan, Race Course Ring Opp. Chaudhary High School, Road, Rajkot-360001 Rajkot-360001 "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AFUPS2094H (Appellant) (Respondent) Appellant by : Shri D.M. Rindani, Ld. AR Responden…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 715/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…the Appellant wishes to place reliance on the following judicial decisions wherein the courts have accepted the claims of the assessee on the ground that the method of accounting followed by assessee is revenue neutral. a) In the case of Excel Industries Ltd. 358 ITR 295 (SC) (refer Page 552- 559 of Paper Book Vol-2), where the assessee maintained its accounts on mercantile basis and claimed deduction under the head ‘advance license benefit’ receivable and ‘duty entitlement passbook benefit’ receivable but the AO did not accept the assessee’s claim on the ground that the taxability of benefits was covered by sect…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 714/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…the Appellant wishes to place reliance on the following judicial decisions wherein the courts have accepted the claims of the assessee on the ground that the method of accounting followed by assessee is revenue neutral. a) In the case of Excel Industries Ltd. 358 ITR 295 (SC) (refer Page 552- 559 of Paper Book Vol-2), where the assessee maintained its accounts on mercantile basis and claimed deduction under the head ‘advance license benefit’ receivable and ‘duty entitlement passbook benefit’ receivable but the AO did not accept the assessee’s claim on the ground that the taxability of benefits was covered by sect…

DCIT, Circle-7(1), Delhi vs. Dlf Limited, Delhi

In the result, appeal of the Revenue is dismissed

ITA 713/DEL/2024[2019-20]Status: DisposedITAT Delhi30 Oct 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…the Appellant wishes to place reliance on the following judicial decisions wherein the courts have accepted the claims of the assessee on the ground that the method of accounting followed by assessee is revenue neutral. a) In the case of Excel Industries Ltd. 358 ITR 295 (SC) (refer Page 552- 559 of Paper Book Vol-2), where the assessee maintained its accounts on mercantile basis and claimed deduction under the head ‘advance license benefit’ receivable and ‘duty entitlement passbook benefit’ receivable but the AO did not accept the assessee’s claim on the ground that the taxability of benefits was covered by sect…

Dlf Limited, Delhi vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the Revenue is dismissed

ITA 677/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…the Appellant wishes to place reliance on the following judicial decisions wherein the courts have accepted the claims of the assessee on the ground that the method of accounting followed by assessee is revenue neutral. a) In the case of Excel Industries Ltd. 358 ITR 295 (SC) (refer Page 552- 559 of Paper Book Vol-2), where the assessee maintained its accounts on mercantile basis and claimed deduction under the head ‘advance license benefit’ receivable and ‘duty entitlement passbook benefit’ receivable but the AO did not accept the assessee’s claim on the ground that the taxability of benefits was covered by sect…

Dlf Limited, Delhi vs. National Faceless Assessment Centre, Delhi

In the result, appeal of the Revenue is dismissed

ITA 676/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…the Appellant wishes to place reliance on the following judicial decisions wherein the courts have accepted the claims of the assessee on the ground that the method of accounting followed by assessee is revenue neutral. a) In the case of Excel Industries Ltd. 358 ITR 295 (SC) (refer Page 552- 559 of Paper Book Vol-2), where the assessee maintained its accounts on mercantile basis and claimed deduction under the head ‘advance license benefit’ receivable and ‘duty entitlement passbook benefit’ receivable but the AO did not accept the assessee’s claim on the ground that the taxability of benefits was covered by sect…

Tata Teleservices Limited, Delhi vs. Assistant Commissioner of Income Tax, Circle 25(1), Delhi

In the result, the appeal of the assessee is allowed

ITA 2549/DEL/2024[2017-18]Status: DisposedITAT Delhi27 Oct 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Avdhesh Kumar Mishraita No.2549/Del./2024, A.Y. 2017-18 Tata Teleservices Limited Assistant Commissioner Of Jeevan Bharati Tower-1, Income Tax, Circle-25(1), 10Th Floor, Vs. C. R. Building, I. P. Estate, 24, Connaught Circus New Delhi New Delhi Pan: Aaact2438A (Appellant) (Respondent) Appellant By Sh. Salil Kapoor, Advocate Ms. Ananya Kapoor, Advocate & Sh. Shivam Yadav, Advocate Respondent By Sh. Dayainder Singh Sidhu, Cit-Dr Date Of Hearing 30/07/2025 Date Of Pronouncement 27/10/2025 Order Per Avdhesh Kumar Mishra, Am This Appeal Of The Assessee For Assessment Year (‘Ay’) 2017-18 Is Directed Against The Order Dated 29.03.2024 Of The Commissioner Of Income Tax (Appeals), Nfac, New Delhi [‘Cit(A)’].

Section 142(1)Section 143(3)Section 35DSection 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No.2549/Del./2024, A.Y. 2017-18 Tata Teleservices Limited Assistant Commissioner of Jeevan Bharati Tower-1, Income Tax, Circle-25(1), 10th Floor, Vs. C. R. Building, I. P. Estate, 24, Connaught Circus New Delhi New Delhi PAN: AAACT2438A (Appellant) (Respondent) Appellant by Sh. Salil Kapoor, Advocate Ms. Ananya Kapoor, Advocate & Sh. Shivam Yadav, Advocate Respondent by Sh. Dayainder Singh Sidhu, CIT-DR Date of Hearing 30/07/2025 Date of Pronoun…

ACIT., Central Circle-2(2), Hyderabad vs. M/S Kmc Constructions Ltd, Hyderabad

ITA 731/HYD/2025[2020-21]Status: DisposedITAT Hyderabad10 Oct 2025AY 2020-21

…this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws." Further, the Hon'ble Supreme Court in Radhasoami Satsang vs. CIT (1992) 193 ITR 321 (SC) and CIT v. Excel Industries Ltd. (2013) 358 ITR 295 (SC) has emphasized the principle of consistency in tax matters. In the present case, since the issue has already been settled in favour of the assessee company by the Tribunal in earlier years on identical facts, there is no reason for us to take a different view. 16. Before parting, we may herein observe that in respect of project no. 3 (out of…