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 147 Section 14A Section 132 Section 153A Section 1961 Section 148

Read the full judgment

Issues it is cited on

right to receive mercantile system of accounting rule of consistency section 35 profits and gains of business or profession revenue expenditure liable to tax section 80i section 37(1)section 28 section 32 capital expenditure

Judgments citing CIT v. Excel Industries Ltd.

M/S Aggarwal & Modi Enterprises vs. The Commissioner of Income Tax

ITA/354/2003HC Delhi21 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Suruchi Aggarwal an…

Aggarwal & Modi Enterprises Co vs. Commissioner of Income Tax

ITA/1122/2007HC Delhi21 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Suruchi Aggarwal an…

M/S Aggarwal & Modi Enterprise vs. The Commissioner of Income Tax

ITA/353/2003HC Delhi21 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Suruchi Aggarwal an…

Aggarwal & Modi Enterprises Pv vs. C.I.T

ITA/767/2006HC Delhi21 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Suruchi Aggarwal an…

M/S Aggarwal & Modi Enterprises vs. Commissioner of Income Tax

ITA/1274/2009HC Delhi21 Jan 2016

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Suruchi Aggarwal an…

M/S Aggarwal & Modi Enterprises vs. Commissioner of Income Tax

ITA - 1274 / 2009HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

M/S Aggarwal & Modi Enterprises vs. The Commissioner of Income Tax

ITA - 354 / 2003HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

M/S Aggarwal & Modi Enterprise vs. The Commissioner of Income Tax

ITA - 355 / 2003HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

M/S Aggarwal & Modi Enterprise vs. Commissioner of Income Tax

ITA - 769 / 2006HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

Aggarwal & Modi Enterprises Pv vs. C.I.T

ITA - 770 / 2006HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

M/S Aggarwal & Modi Enterprise vs. Commissioner of Income Tax

ITA - 876 / 2006HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

Aggarwal & Modi Enterpises Co vs. Commissioner of Income Tax

ITA - 1123 / 2007HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

M/S Aggarwal & Modi Enterprises Pvt Ltd vs. Commissioner of Income Tax

ITA - 1273 / 2009HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

M/S Aggarwal & Modi Enterprises vs. Commissioner of Income Tax

ITA - 1277 / 2009HC Delhi21 Jan 2016

…rovision of interest as claimed by the Assessee was allowed. This was the position as regards AYs 1982-83 to 1986-87, 1993-94, 1994- 95, 1996-97, 2002-03, 2004-05 to 2008-09. Mr. Aggarwal referred to the decision in CIT v. Excel International Limited (2013) 358 ITR 295 (SC) 2016:DHC:494-DB ITA Nos.353, 354, 355/2003; 767, 769, 770, 801, 876/2006; 1122, 1123/2007; 1273, 1274, 1277/2009 Page 18 of 31 which affirmed the earlier decision of the Supreme Court in Radhasoami Satsang Saomi Bagh v. CIT (1992)193 ITR 321(SC). Submissions of counsel for the Revenue 36. It was submitted by Ms. Sur…

DCIT (OSD) 8(1), Mumbai vs. Future Supply Chain Solutions Ltd, Mumbai

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

ITA 4468/MUM/2014[2008-09]Status: DisposedITAT Mumbai08 Jan 2016AY 2008-09

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2008-09

…ind that this kind of approach adopted by the Revenue has caused undue hardship to taxpayers. In this regard we shall like to quote here guidance given to the Revenue in its recent judgment by Hon’ble Supreme Court in the case of CIT vs. Excel Industries Ltd. 358 ITR 295, the relevant para from this judgment is reproduced below: “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 t…

Usha Manohar Shetty, Mumbai vs. Asst CIT 18(3), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 3984/MUM/2013[2008-09]Status: DisposedITAT Mumbai06 Jan 2016AY 2008-09

Bench: Shri Sanjay Garg & Shri Ashwani Tanejaassessment Year: 2008-09 Usha Manohar Shetty, Acit 18(3) 132 Marble Arch बनाम/ R.No.209, 2Nd Floor, Senapati Bapa Tmarg, Piramal Chamber, Parel Vs. Mahim Mumbai -400012 Mumbai-400016 (Revenue) (Respondent) P.A. No.Abbps2235F Assessee By Dr. K. Shivaram(Ar) Revenue By Shri Santosh Mankoskar (Dr)

Section 143(3)Section 269USection 27

…operty as tenant, income earned from sub-letting the same is assessable as ‘income from house property’, even though the assessee was not owner thereof. We further find support from the judgment of Hon’ble Supreme Court in the case of CIT vs. Excel Industries 358 ITR 295, wherein it has been held that if a stand has been accepted by the Revenue consistently, then it should not be reversed unless there is some change in facts or law. The relevant portion of the order of Hon’ble Supreme Court is reproduced below: “28. Secondly, as noted by the Tribunal, a consistent view has been taken in favour of the assessee on…

Eli Lilly & Co. (India) Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

ITA 788/DEL/2015[2010-11]Status: DisposedITAT Delhi20 Nov 2015AY 2010-11

Bench: Shri S.V.Mehrotra & Shri A.T. Varkey

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Syed Nasir Ali, CIT DR

Section 143(3)Section 144CSection 92C

…he revenue. In light of the above and in accordance with principle of consistency the disallowance is held to be legally untenable. In support of the above conclusion 18 reliance is placed on the judgment of Apex Court in the case of CIT vs. Excel Industries 358 ITR 295 wherein it has been held as under: “29. In Radhasoami Satsang Saomi Bagh v. Commissioner of Income Tax, [1992] 193 ITR 321 (SC) this Court did not think it appropriate to allow the reconsideration of an issue for a subsequent assessment year if the same "fundamental aspect" permeates in different assessment years. In arriving at this conclusion,…

M/S. Eli Lilly & Co. (India) Pvt. Ltd., Gurgaon vs. ACIT, Gurgaon

In the result, the appeal of the assessee stands allowed

ITA 780/DEL/2014[2009-10]Status: DisposedITAT Delhi20 Nov 2015AY 2009-10

Bench: Shri S.V.Mehrotra & Shri A.T. Varkey

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri Syed Nasir Ali, CIT DR

Section 143(3)Section 144CSection 234BSection 234CSection 92C

…arable to the assessee and there exists no legitimate reason to reject the company in the year under consideration. The assessee placed his reliance on the judgment of ITA NOS.780/Del/2016 Hon’ble Supreme Court in the case of CIT vs. Excel Industries Limited 358 ITR 295, wherein their Lordships reiterated the law laid down in Radhasoami Satsang vs. CIT 193 ITR 321 to hold that, where a fundamental aspect permeating through the different assessment years have been found as a fact one way or the other, and the parties have allowed the position to be sustained by not challenging the order, it is not allowed to chan…

M/S Dreamcity Developers, Mumbai vs. ITO - 23(2)-2, Mumbai

In the result, the appeal of the assessee is allowed

ITA 2652/MUM/2013[2009-10]Status: DisposedITAT Mumbai18 Nov 2015AY 2009-10

Bench: Shri Shailendra Kumar Yadav & Shri Ashwani Tanejaassessment Year: 2009-10 Dreamcity Developers, Ito -23(2)-2 A/35-36, Patil Bhuvan, C-10, 2Nd Floor, बनाम/ Nsb Road, Mulund (W), Pratyakshar Bhavan Bkc, Vs. Mumbai-400080 Bandra (E) Mumbai- (Assessee) (Revenue) P.A. No.Aaffd1884L "नधा"रती क" ओर से / Assessee By Shri R.G. Tralshawala (Ar) Shri Jitendra Kumar (Dr) राज"व क" ओर से / Revenue By सुनवाई क" तार"ख/Date Of Hearing: 09/10/2015 18/11/2015 आदेश क" तार"ख /Date Of Order: आदेश / O R D E R Per Ashwani Taneja ():

Section 143(3)Section 801Section 801BSection 801B(10)Section 80ISection 80l

…ances, in our 9 Dreamcity Developers considered view, when the revenue has accepted a claim in a particular year, the same should be accepted in other years also, as has been recently held by Hon’ble Supreme Court in the case of CIT vs. Excel Industries Ltd. 358 ITR 295, and its relevant Para is reproduced hereunder: “It appears from the record that in several assessment years, the Revenue accepted the order of the Tribunal in favour of the assessee and did not pursue the matter any further but in respect of some assessment years the matter was taken up in appeal before the Bombay High Court but without any suc…

Pranik Landmark Associates ( Since Succeded), Mumbai vs. Asst CIT RG 19(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 826/MUM/2012[2008-09]Status: DisposedITAT Mumbai18 Nov 2015AY 2008-09

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2008-09 Synchem Investments Pvt. Acit Rg 19(2) Ltd. (Erstwhile Pranik Piramal Chambers, बनाम/ Landmark Associates), Vs. 159 Cst Road, Kalina, Mumbai -400098 Mumbai- (Assessee) (Revenue) P.A. No.Aaafp2410K "नधा"रती क" ओर से / Assessee By Ms. Vasanti Patel (Ar) Shri Somnath Ukkal (Dr) राज"व क" ओर से / Revenue By 4/11/2015 सुनवाई क" तार"ख / Date Of Hearing : 18/11/2015 आदेश क" तार"ख /Date Of Order:

…no reason to take a different view in another year, unless of course when there is change in some material facts or applicable law. We find 6 Synchem Investments Pvt support from the order of Hon’ble Supreme Court in the case of CIT vs. Excel Industries Ltd. 358 ITR 295. Its relevant para is reproduced herein: “It appears from the record that in several assessment years, the Revenue accepted the order of the Tribunal in favour of the assessee and did not pursue the matter any further but in respect of some assessment years the matter was taken up in appeal before the Bombay High Court but without any success. T…