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 366,470 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.

M/S Nature Bio Foods Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 4012/DEL/2016[2010-11]Status: DisposedITAT Delhi02 Feb 2022AY 2010-11

Bench: Shri Kul Bharat & Shri Pradip Kumar Kedia

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Move adjournment application
Section 143(2)Section 143(3)

…is the contention of the assessee that the entire exercise is tax neutral and thus no addition is called for in the light of the decision of the Hon’ble Supreme Court in the case of CIT vs. Bilahari Investment, (2008) 299 ITR 1 (SC); CIT vs. Excel Industries 358 ITR 295 (SC). 9. In the light of the judgments rendered by the Hon’ble Supreme Court, the impugned addition is not warranted where the income has already been offered in the subsequent assessment year(s). However, whether the income arising from fluctuation of currency has been offered in the subsequent assessment year or not is a question of fact and w…

Shree Mahuva Pradesh Sahakari Khand Udyog Mandli Ltd, Surat vs. ITO, Ward-1, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 84/SRT/2020[2014-15]Status: DisposedITAT Surat18 Jan 2022AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

Shree Mahuva Pradesh Sahakari Khand Udyog Mandli Ltd, Surat vs. DCIT, Circle-2(3), Surat

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 83/SRT/2020[2013-14]Status: DisposedITAT Surat18 Jan 2022AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

Shree Mahuva Pradesh Sahakari Khand Udyog Mandli Ltd, Surat vs. ITO, Ward-1, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 82/SRT/2020[2012-13]Status: DisposedITAT Surat18 Jan 2022AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

ITO, Ward-1, Bardoli vs. Shree Mahuva Pradesh Sahakari Khand Udhyog Mandli Ltd, Surat

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 106/SRT/2020[2014-15]Status: DisposedITAT Surat18 Jan 2022AY 2014-15

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

ITO, Ward-1, Bardoli vs. Shree Mahuva Pradesh Sahakari Khand Udhyog Mandli Ltd, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 105/SRT/2020[2013-14]Status: DisposedITAT Surat18 Jan 2022AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

ITO, Ward-1, Bardoli vs. Shree Mahuva Pradesh Sahakari Khand Udhyog Mandli Ltd, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 104/SRT/2020[2012-13]Status: DisposedITAT Surat18 Jan 2022AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

ACIT, New Delhi vs. M/S. Lepro Herbals Pvt. Ltd., New Delhi

In the result, the appeal filed by the Revenue is dismissed

ITA 111/DEL/2016[2010-11]Status: DisposedITAT Delhi18 Jan 2022AY 2010-11

Bench: Shri R.K. Panda & Ms. Suchitra Kamble

For Appellant: Dr. Rakesh Gupta, AdvocateFor Respondent: Shri Pravin Rawal, CIT-DR
Section 132Section 132(1)Section 145

…decisions, he submitted that in view of Rule of consistency, the addition made by the Assessing Officer is not justified and the ld. CIT(A) has rightly deleted the addition. 1. Radhasoami Satsang vs CIT [1992] 193 ITR 321 (SC) 2. CIT vs Excel Industries Ltd. 358 ITR 295(SC) 8. He accordingly submitted that the order of the ld. CIT(A) being in accordance with law should be upheld and the grounds raised by the Revenue should be dismissed. 9. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and the 27 ITA.No.111/Del./2016 M/s. Lepro Herbals Pvt. Ltd., New Delhi…

Modern Autotronix, New Delhi vs. Jt. CIT Range-18, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3974/DEL/2019[2014-15]Status: DisposedITAT Delhi29 Dec 2021AY 2014-15

Bench: Ms. Suchitra Kambledr. B. R. R. Kumar(Through Video Conferencing) Ita No. 3974/Del/2019 : Asstt. Year : 2014-15 M/S Modern Autotronix, Vs Jcit, B-11, Diwan Shree Apartment, Range-18, 30, Firozshah Road, New Delhi-110002 New Delhi-110001 (Appellant) (Respondent) Pan No. Aarfm8678B

For Appellant: Sh. A. K. Srivastava, CAFor Respondent: Sh. Birender Singh, Sr. DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Ms. Suchitra Kamble, Judicial Member Dr. B. R. R. Kumar, Accountant Member (Through Video Conferencing) ITA No. 3974/Del/2019 : Asstt. Year : 2014-15 M/s Modern Autotronix, Vs JCIT, B-11, Diwan Shree Apartment, Range-18, 30, Firozshah Road, New Delhi-110002 New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. AARFM8678B Assessee by : Sh. A. K. Srivastava, CA Revenue by : Sh. Birender Singh, Sr. DR Date of Hearing: 29.09.2021 Date of Pronouncement: 29.12.2021 ORDER Per Dr. B. R. R. Kumar, Accountant Member: Heard the arguments of both the pa…

Shree Sayan Vibhag Sahakari Khand Udhyog Mandli Ltd, Surat vs. DCIT, Circle-2(2), Surat

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 74/SRT/2020[2012-13]Status: DisposedITAT Surat23 Dec 2021AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower As per Sr. No. 1 above. 5 ITA Nos. 74, 69 & 75/SRT/2020 (A.Y. 12-13 & 13-14) Shree Sayan Vibhag Sahakari Khand Udyog Mandli Ltd. authorities have erred in ov…

Shree Madhi Vibhag Khand Udyog Sahakari Mandli Ltd., Dist. Surat vs. ITO, Ward-1, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 73/SRT/2020[2013-14]Status: DisposedITAT Surat23 Dec 2021AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have erred in As per Sr. overlooking and summarily rejecting the detailed No. 1 various submissions made during the course of above. assessment/ap…

Shree Madhi Vibhag Sahakari Khand Udyog Mandli Ltd, Bardoli vs. ITO, Ward-1, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 72/SRT/2020[2012-13]Status: DisposedITAT Surat23 Dec 2021AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have erred in As per Sr. overlooking and summarily rejecting the detailed No. 1 various submissions made during the course of above. assessment/ap…

DCIT, Circle-2(2), Surat vs. Shree Sayan Vibhag Sahakari Khand Udhyog Mandli Ltd, Surat

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 69/SRT/2020[2012-13]Status: DisposedITAT Surat23 Dec 2021AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower As per Sr. No. 1 above. 5 ITA Nos. 74, 69 & 75/SRT/2020 (A.Y. 12-13 & 13-14) Shree Sayan Vibhag Sahakari Khand Udyog Mandli Ltd. authorities have erred in ov…

DCIT., Circle-2(3), Surat vs. Shree Madhi Vibhag Khand Udyog Sahakari Mandli Ltd., Dist. Surat

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 68/SRT/2020[2012-13]Status: DisposedITAT Surat23 Dec 2021AY 2012-13

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have erred in As per Sr. overlooking and summarily rejecting the detailed No. 1 various submissions made during the course of above. assessment/ap…

Shree Khedut Sahakari Khand Udyog Mandli Ltd, Surat vs. ITO, Ward-1, Bardoli

In the result, appeal of assessee is allowed for statistical purposes in above terms

ITA 59/SRT/2020[2013-14]Status: DisposedITAT Surat23 Dec 2021AY 2013-14

Bench: Shri Pawan Singh & Dr. Arjun Lal Saini

Section 143(3)Section 254(1)Section 37(1)Section 9

…arious Assessing Officers or the Appellate Authorities, and therefore. There was no justification on the part of the Assessing Officer to decide to the contrary, and thus, offend the law laid down by the Supreme Court in CIT Vs. Excel Industries Ltd. - (2013) 358 ITR 295 holding that Revenue must be consistent and not flip-flop on the same issue in different assessment years. 8 On the facts and in the circumstances of the case as well in law, both the lower authorities have As per Sr. No. 1 above. erred in overlooking and summarily rejecting the detailed various submissions made during the course of assessment/ap…

Bridge & Building Construction Co. Pvt. Ltd., Kolkata vs. ACIT, Central Circle - 2(1), Kolkata

ITA 534/KOL/2018[2014-15]Status: DisposedITAT Kolkata22 Dec 2021AY 2014-15

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…elevant material. Further also same view had been taken by the Hon’ble Supreme Court in the case of BrijBhushanLalParduman Kumar vs. CIT reported in 115 ITR 524 (SC). Further also the Hon’ble Supreme Court in the case of CIT v. Excel Industries Limited (2013) 358 ITR 295 (SC), held that income tax cannot be levied on hypothetical income and it has really accrued to the assessee. f] From the order it is appeared that in the case of assessee the ld AO had used arbitrarily power and has rejected one side i.e. debit side of audited P&L a/c and disallowed the entire expenditure as claimed by assessee, however correspo…

Bridge & Building Construction Co. Pvt. Ltd., Kolkata vs. DCIT, Central Circle - 2(1), Kolkata

ITA 533/KOL/2018[2012-13]Status: DisposedITAT Kolkata22 Dec 2021AY 2012-13

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…elevant material. Further also same view had been taken by the Hon’ble Supreme Court in the case of BrijBhushanLalParduman Kumar vs. CIT reported in 115 ITR 524 (SC). Further also the Hon’ble Supreme Court in the case of CIT v. Excel Industries Limited (2013) 358 ITR 295 (SC), held that income tax cannot be levied on hypothetical income and it has really accrued to the assessee. f] From the order it is appeared that in the case of assessee the ld AO had used arbitrarily power and has rejected one side i.e. debit side of audited P&L a/c and disallowed the entire expenditure as claimed by assessee, however correspo…

DCIT, Circle - 10(1), Kolkata vs. M/S. Bridge & Building Construction Co. Pvt. Ltd., Kolkata

ITA 375/KOL/2018[2014-15]Status: DisposedITAT Kolkata22 Dec 2021AY 2014-15

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…elevant material. Further also same view had been taken by the Hon’ble Supreme Court in the case of BrijBhushanLalParduman Kumar vs. CIT reported in 115 ITR 524 (SC). Further also the Hon’ble Supreme Court in the case of CIT v. Excel Industries Limited (2013) 358 ITR 295 (SC), held that income tax cannot be levied on hypothetical income and it has really accrued to the assessee. f] From the order it is appeared that in the case of assessee the ld AO had used arbitrarily power and has rejected one side i.e. debit side of audited P&L a/c and disallowed the entire expenditure as claimed by assessee, however correspo…

DCIT, Circle - 10(1), Kolkata vs. M/S. Bridge & Building Construction Co. Pvt. Ltd., Kolkata

ITA 374/KOL/2018[2012-13]Status: DisposedITAT Kolkata22 Dec 2021AY 2012-13

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…elevant material. Further also same view had been taken by the Hon’ble Supreme Court in the case of BrijBhushanLalParduman Kumar vs. CIT reported in 115 ITR 524 (SC). Further also the Hon’ble Supreme Court in the case of CIT v. Excel Industries Limited (2013) 358 ITR 295 (SC), held that income tax cannot be levied on hypothetical income and it has really accrued to the assessee. f] From the order it is appeared that in the case of assessee the ld AO had used arbitrarily power and has rejected one side i.e. debit side of audited P&L a/c and disallowed the entire expenditure as claimed by assessee, however correspo…

Bridge & Building Construction Co. Pvt. Ltd., Kolkata vs. ITO, Ward - 10(1), Kolkata

ITA 2116/KOL/2018[2013-14]Status: DisposedITAT Kolkata22 Dec 2021AY 2013-14

Bench: Hon’Ble Shri A. T. Varkey, Jm & Shri Manish Borad, Am]

Section 143(2)Section 144

…elevant material. Further also same view had been taken by the Hon’ble Supreme Court in the case of BrijBhushanLalParduman Kumar vs. CIT reported in 115 ITR 524 (SC). Further also the Hon’ble Supreme Court in the case of CIT v. Excel Industries Limited (2013) 358 ITR 295 (SC), held that income tax cannot be levied on hypothetical income and it has really accrued to the assessee. f] From the order it is appeared that in the case of assessee the ld AO had used arbitrarily power and has rejected one side i.e. debit side of audited P&L a/c and disallowed the entire expenditure as claimed by assessee, however correspo…