CIT v. Goyal MG Gases P. Ltd.

303 ITR 159High Court2008#2224 most cited

What is CIT v. Goyal MG Gases P. Ltd. authority for?

Interest income does not accrue if the realization of the principal amount itself is in jeopardy, and only real income, not hypothetical income, can be taxed.

52

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2011 to 2025.

Also referred to as

CIT vs. Goyal MG Gases P. Ltd. · 303 ITR 159 · interest income · real income · jeopardy · principal amount · accrual of interest

Sections most often in play

Section 143(3)Section 142(2A)Section 147Section 14ASection 2(22)(e)Section 40(a)(ia)Section 40A(2)(b)Section 40A(3)
Read the full judgment

Issues it is cited on

section 40(3)short deduction of tdsinterest on interestsection 127(1)closely held companyshort deduction of taxaccumulated profitsrelated party transactionsection 138section 194jsection 40a(2)(b)section 142(2a)

Judgments citing CIT v. Goyal MG Gases P. Ltd.

ACIT, CC- 26, New Delhi vs. Krishan Kumar Modi, New Delhi

In the result, the assessee's appeal is allowed

ITA 3955/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Jul 2019AY 2011-12

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

ACIT, CC- 26, New Delhi vs. Krishan Kumar Modi, New Delhi

In the result, the assessee's appeal is allowed

ITA 3954/DEL/2017[2010-11]Status: DisposedITAT Delhi05 Jul 2019AY 2010-11

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

ACIT, CC- 26, New Delhi vs. Krishan Kumar Modi, New Delhi

In the result, the assessee's appeal is allowed

ITA 3953/DEL/2017[2009-10]Status: DisposedITAT Delhi05 Jul 2019AY 2009-10

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

ACIT, CC- 26, New Delhi vs. Krishan Kumar Modi, New Delhi

In the result, the assessee's appeal is allowed

ITA 3952/DEL/2017[2008-09]Status: DisposedITAT Delhi05 Jul 2019AY 2008-09

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

ACIT, CC- 26, New Delhi vs. Krishan Kumar Modi, New Delhi

In the result, the assessee's appeal is allowed

ITA 3951/DEL/2017[2007-08]Status: DisposedITAT Delhi05 Jul 2019AY 2007-08

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

Sh. Krishan Kumar Modi, New Delhi vs. ACIT, New Delhi

In the result, the assessee's appeal is allowed

ITA 2894/DEL/2017[2012-13]Status: DisposedITAT Delhi05 Jul 2019AY 2012-13

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

Sh. Krishan Kumar Modi, New Delhi vs. ACIT, New Delhi

In the result, the assessee's appeal is allowed

ITA 2893/DEL/2017[2007-08]Status: DisposedITAT Delhi05 Jul 2019AY 2007-08

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

Sh. Krishan Kumar Modi, New Delhi vs. ACIT, New Delhi

In the result, the assessee's appeal is allowed

ITA 2892/DEL/2017[2006-07]Status: DisposedITAT Delhi05 Jul 2019AY 2006-07

Bench: Shri G.D. Agrawal & Shri Sudhanshu Srivastavaassessment Year: 2006-07 Assessment Year: 2006-07 Assessment Year: 2012-13 Krishan Kumar Modi, Acit, A-1, Maharani Bagh, Central Circle – 2, New Delhi. New Delhi. Vs (Pan: Aanpm0159M)

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri J.K. Mishra, C.I.T. DR
Section 132Section 132(4)Section 139(1)Section 69A

…liance was placed on the following decisions, wherein it has been held that no addition on account of interest can be made where no interest has in fact been charged by the parties within the terms of funds/loan advanced. • CIT vs. Goyal M.G. Gases (P) Ltd.: 303 ITR 159 (Del.) • B & A Plantations and Industries vs. CIT: 242 ITR 22 (Gau.) • KeshrichandJaisukhlal vs. CIT: 248 ITR 47 (Gau.) • Highways Construction Co. Pvt. Ltd vs. CIT: 199 ITR 702 (Gau.) • Jwala Prasad Radha Krishna vs. CIT [1992]: 198 ITR 415 (All) • CIT vs. Punjab Financial Corpn. Ltd.: 295 ITR 510 (P&H HC) • CIT vs. South India Corpn. (Agencies)…

Gujarat Alkalies and Chemicals Ltd., Baroda vs. The Dy.CIT, Circle-1(1), Baroda

In the result appeal of the Revenue is dismissed

ITA 688/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad25 Feb 2019AY 2011-12

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.688/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 Gujarat Alkalies & Chemicals Ltd., D.C.I.T., Near Ipcl Complex, Circle-1(1), Vs. Baroda-390007. P.O Petrochemicals, At Ranoli, Dist. Baroda-391346. Pan: Aaacg8896M आयकर अपील सं./Ita No.937/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 D.C.I.T, Gujarat Alkalies & Chemicals Ltd., Circle-1(1), Near Ipcl Complex, Vs. Baroda-390007. P.O Petrochemicals, At Ranoli, Dist. Baroda-391346. Pan: Aaacg8896M

Section 115JSection 143(3)Section 14ASection 234BSection 80I

…at such an issue was considered by two High. Courts of country and held in favour of the assessee. Reference in this regard may be made to the decision of the Delhi High Court in the case of Commissioner of Income Tax vs. Goyal MG Gases Ltd. reported in [2008]296 ITR 72 Delhi), where it was observed that “if we interpret the expression "gas cylinder" to mean "cooking gas cylinder", we will be really adding words to the statute which is not permissible." Relying on the said decision of the Delhi High Court in the case of Commissioner of Income Tax vs. Goyal MG Gases Ltd. (supra) , the Division Bench of Madras High…

Commissioner of Income Tax vs. H.B. Leasing & Finance Ltd

ITA/6/2000HC Delhi04 Jul 2013

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE SANJEEV SACHDEVA

Section 260A

…that there is a distinction between „lease rental‟ and „hire charges‟.” 3. It is stated by the counsel for the parties that the first two questions i.e. questions A and B are covered by the decision of this Court in CIT Vs. Goyal MG Gases Ltd., (2008) 296 ITR 72 (Delhi) wherein a similar controversy had arisen and it was held that a tanker or a gas cylinder attached to the body of a truck continues to be a gas cylinder and is accordingly entitled to depreciation as applicable to gas cylinder in Appendix I to the Income-tax Rules. In other words, the gas cylinders even in such cases are entitled to 1…

Commissioner of Income Tax vs. H.B. Leasing & Finance Ltd

ITA - 6 / 2000HC Delhi04 Jul 2013
Section 260A

…that there is a distinction between „lease rental‟ and „hire charges‟.” 3. It is stated by the counsel for the parties that the first two questions i.e. questions A and B are covered by the decision of this Court in CIT Vs. Goyal MG Gases Ltd., (2008) 296 ITR 72 (Delhi) wherein a similar controversy had arisen and it was held that a tanker or a gas cylinder attached to the body of a truck continues to be a gas cylinder and is accordingly entitled to depreciation as applicable to gas cylinder in Appendix I to the Income-tax Rules. In other words, the gas cylinders even in such cases are entitled to 1…

Commissioner of Incomet Ax vs. Goyal M.G.Gases P.Ltd

ITA/578/2009HC Delhi13 May 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…no fault in this view taken by the Tribunal and are of the opinion that no substantial question of law arises for our consideration.” 9. We also find that identical view is taken in the case of Commissioner of Income Tax Vs. Goyal M.G. Gases P. Ltd. [303 ITR 159] and Commissioner of Income Tax Vs. Eicher Ltd. [320 ITR 410]. We are, thus, of the view that no substantial question of law arises, this appeal is accordingly dismissed. (A.K. SIKRI) JUDGE (M.L. MEHTA) JUDGE MAY 13, 2011 pmc…