CIT v. Karthikeyan (G.R)

201 ITR 866Supreme Court of India1993#4147 most cited

What is CIT v. Karthikeyan (G.R) authority for?

The purpose of the inclusive definition of 'income' in Section 2(24) of the Income Tax Act is to broaden its scope, meaning that even receipts not explicitly listed may still be considered income if they possess its nature.

28

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v Karthikeyan · G.R · 201 ITR 866 · SC · 1993 · Section 2(24) · income · inclusive definition · nature of income · profits and gains of business or profession · mercantile system of accounting

Issues it is cited on

section 153(a)project completion methodright to receivesection 59section 2(24)profits and gains of business or professionmercantile system of accountingsection 30section 40a(3)on-moneyliable to taxsection 5(1)

Judgments citing CIT v. Karthikeyan (G.R)

Oricon Enterprises Ltd, Mumbai vs. DCIT, Cir-8(2)(1), Mumbai

The appeal of the appellant is dismissed for the reasons mentioned above

ITA 2810/MUM/2024[2017-18]Status: DisposedITAT Mumbai16 Jun 2025AY 2017-18

Bench: Smt. Beena Pillai(Jm) & Shri Omkareshwar Chidara(Am)

For Respondent: Shri Vijay Mehta &
Section 2(24)(xviii)Section 270A

…“income” is of the widest amplitude and it must be given its natural and grammatical meaning The definition of the term "income" starts with the word "includes" and list is inclusive and not exhaustive. b) The Supreme Court in the case of CIT Vs. Karthikeyan 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning, but to widen its net and the several clauses therein are not exhaustive of the meaning of “income”; even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. c) The Legislature has w…

DCIT Central Circle-3, Thane vs. Moreshwar Krushna Baria, Thane

ITA 2218/MUM/2022[2014-15]Status: DisposedITAT Mumbai28 Jun 2023AY 2014-15

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

DCIT Central Circle-3, Thane vs. Moreshwar Krushna Baria, Thane

ITA 2217/MUM/2022[2013-14]Status: DisposedITAT Mumbai28 Jun 2023AY 2013-14

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Moreshwar Krushna Baria, Thane vs. Asst Comm of Income Tax Central Circle-3, Thane

ITA 1966/MUM/2022[2014-15]Status: DisposedITAT Mumbai28 Jun 2023AY 2014-15

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Moreshwar Krushna Baria, Thane vs. Asst Comm of Income Tax Central Circle-3, Thane

ITA 1965/MUM/2022[2013-14]Status: DisposedITAT Mumbai28 Jun 2023AY 2013-14

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Moreshwar Krushna Baria, Mumbai vs. Assistant Commissioner of Income Tax, Thane

ITA 1964/MUM/2022[2012-13]Status: DisposedITAT Mumbai28 Jun 2023AY 2012-13

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Moreshwar Krushna Baria, Thane vs. Asst Comm of Income Tax Central Circle-3, Thane

ITA 1963/MUM/2022[2011-12]Status: DisposedITAT Mumbai28 Jun 2023AY 2011-12

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Moreshwar Krushna Baria, Thane vs. Asst Comm of Income Tax Central Circle-3, Thane

ITA 1962/MUM/2022[2010-11]Status: DisposedITAT Mumbai28 Jun 2023AY 2010-11

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Moreshwar Krushna Baria, Thane vs. ACIT Central Circle-3, Thane

ITA 1961/MUM/2022[2009-10]Status: DisposedITAT Mumbai28 Jun 2023AY 2009-10

Bench: Shri Kuldip Singh & Shri Gagan Goyal

For Appellant: Shri Subodh Ratnaparkhi, A.RFor Respondent: Smt. Riddhi Mishra, CIT D.R
Section 132Section 69C

…e the books of accounts, it cannot be assessed as per the method of accounting regularly followed by the assessee. The Income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income, even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The I.T. Act (Sec. 145) pr…

Daicel Chiral Technologies India Private Limited, Hyderabad vs. DCIT, Circle -8 (1), Hyderabad

In the result, the appeal of the assessee is dismissed

ITA 87/HYD/2022[2017-18]Status: DisposedITAT Hyderabad03 Feb 2023AY 2017-18

Bench: Shri Rama Kanta Panda & Shri Laliet Kumarassessment Year: 2017-18 M/S. Daicel Chiral Vs. 1. Deputy Technologies India Private Commissioner Of Limited, Income Tax, Circle Medchal, 8(1), Hyderabad. Hyderabad. 2. National Faceless Pan : Aaccd8423B. Assessment Centre, Delhi. (Appellant) (Respondent) Assessee By: Shri N. Pradeep Revenue By: Shri T. Vijaya Bhaskar Reddy Date Of Hearing: 01.02.2023 Date Of Pronouncement: 03.02.2023 O R D E R Per Laliet Kumar, J.M.

For Appellant: Shri N. PradeepFor Respondent: Shri T. Vijaya Bhaskar Reddy
Section 142(1)Section 143(2)Section 143(3)Section 92C

…section 4 and 10 of the Act is that given its ordinary and natural meaning. The word income we take in any monetary return come in. The work income is of the widest amplitude and must be given its natural and grammatical meaning —CIT v G R Karthikeyan( 1993) 201 ITR 866 874(SC). Income is taxable when it accuses or is earned , if the assessee's accounts are maintained on the mercantile basis, it is taxable when it is received, if the assessee's accounts are maintained on cash basis —CIT-V A Gajapaty Naidu( 1964) 53 ITR 114(SC) This facts is reiterated by the Hon'ble High Court of Madras in the case of CIT vs Pla…

Rashmi Ameya Developers Housing & Estate Realtors P. Ltd., Palghar vs. ACIT, Central Circle-3, Thane

In the result, all the five appeals of the assessee are dismissed

ITA 1990/MUM/2020[2011-12]Status: DisposedITAT Mumbai30 Mar 2022AY 2011-12

Bench: Shri Om Prakash Kant () & Ms. Kavitha Rajagopal () Assessment Year: 2011-12 & Assessment Year: 2012-13 & Assessment Year: 2013-14 & Assessment Year: 2014-15 & Assessment Year: 2015-16 Rashmi Ameya Developers Acit, Central Circle-3, 6Th Floor, Ashar It Park, Road No. Housing & Estate Realtors Pvt. Ltd., Vs. D Ii, 01 02, Akanksha Commercial 16Z, Wagale Industrial Estate, Complex, Opp. Sajavat Complex, Thane-400 604. Achole Road, Nallasopara, Dist. Palghar-401 203. Pan No. Aaecr 8508 H Appellant Respondent

For Appellant: Mr. Subhodh Ratnaparkhi, ARFor Respondent: Mr. Prabhat Kumar Gupta, CIT-DR
Section 132Section 132(4)Section 153ASection 153C

…the books of accounts, it cannot be assessed as per the, method pf accounting regularly followed by the assessee. The income tax Act has given an inclusive definition of income as per Sec. 2(24) of the Act. The Supreme Court in CIT v Karthikeyan (G.R) (1993) 201 ITR 866 (SC) has held that the purpose of the inclusive definition is not to limit the meaning but to widen its net, and the several clauses therein are not exhaustive of the meaning of income; even if a receipt did not fall within the ambit of any of the clauses, it might still be income if it partakes of the nature of income. The IT Act (Sec. 145) prov…

Shiv Kumar Jatia, New Delhi vs. ITO, Ward- 10(2), New Delhi

The appeals of the assessee are allowed

ITA 7256/DEL/2019[2011-12]Status: DisposedITAT Delhi26 Apr 2021AY 2011-12

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumar(Through Video Conferencing) Ita No. 7256/Del/2019 : Asstt. Year : 2011-12 Ita No. 241/Del/2019 : Asstt. Year : 2013-14 Sh. Shiv Kumar Jatia, Vs Income Tax Officer, B-50, Gulmohar Park, Ward-10(2), New Delhi-110049 New Delhi-110002 (Appellant) (Respondent) Pan No. Aabpj7582K Assessee By : Sh. C. S. Aggarwal, Sr. Adv. Revenue By : Sh. Prakash Dubey, Sr. Dr Date Of Hearing: 10.03.2021 Date Of Pronouncement: 26.04.2021

For Appellant: Sh. C. S. Aggarwal, Sr. AdvFor Respondent: Sh. Prakash Dubey, Sr. DR
Section 10Section 10(38)Section 2(24)Section 71Section 74

…ical meaning. Thus even if a receipt does not fall within the specific ambit of ITA Nos. 7256 & 241/Del/2019 4 Shiv Kumar Jatia section 2(24), it may still be income if it partakes the nature of income. Kind attention is drawn to CIT Vs G.R. Karthikeyan (SC) 201 ITR 866 in this regard, in the case of the assessee the receipt from sale of long term asset clearly is income in the hand of the assessee in term of section 2(24) read with the definition of transfer as defined u/s 2(47) of the I.T. Act. 1961. 3. The receipt then has to be considered from the view of specific provision of exemption under Chapter III of…

Shiv Kumar Jatia, New Delhi vs. ITO, Ward- 10(2), New Delhi

The appeals of the assessee are allowed

ITA 241/DEL/2019[2013-14]Status: DisposedITAT Delhi26 Apr 2021AY 2013-14

Bench: Sh. Bhavnesh Sainidr. B. R. R. Kumar(Through Video Conferencing) Ita No. 7256/Del/2019 : Asstt. Year : 2011-12 Ita No. 241/Del/2019 : Asstt. Year : 2013-14 Sh. Shiv Kumar Jatia, Vs Income Tax Officer, B-50, Gulmohar Park, Ward-10(2), New Delhi-110049 New Delhi-110002 (Appellant) (Respondent) Pan No. Aabpj7582K Assessee By : Sh. C. S. Aggarwal, Sr. Adv. Revenue By : Sh. Prakash Dubey, Sr. Dr Date Of Hearing: 10.03.2021 Date Of Pronouncement: 26.04.2021

For Appellant: Sh. C. S. Aggarwal, Sr. AdvFor Respondent: Sh. Prakash Dubey, Sr. DR
Section 10Section 10(38)Section 2(24)Section 71Section 74

…ical meaning. Thus even if a receipt does not fall within the specific ambit of ITA Nos. 7256 & 241/Del/2019 4 Shiv Kumar Jatia section 2(24), it may still be income if it partakes the nature of income. Kind attention is drawn to CIT Vs G.R. Karthikeyan (SC) 201 ITR 866 in this regard, in the case of the assessee the receipt from sale of long term asset clearly is income in the hand of the assessee in term of section 2(24) read with the definition of transfer as defined u/s 2(47) of the I.T. Act. 1961. 3. The receipt then has to be considered from the view of specific provision of exemption under Chapter III of…

DCIT, Circle - 35, Kolkata vs. M/S. Kolkata Port Trust, Kolkata

In the result, all the appeals of the assessee are partly allowed and COs of the assessee are dismissed and all the appeals of the revenue are dismissed

ITA 453/KOL/2018[2014-15]Status: DisposedITAT Kolkata21 Feb 2020AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 271(1)(c)Section 274

…contains the element of income in common parlance that will be included within the scope of definition of income under the provision notwithstanding the fact that there is no specific inclusion of such item in the definition. (CIT Vs. G. R. Karthikeyan (1993) 201 ITR 866). Therefore, since the receipt of the portion of the compensation of Rs. 101 cr. in question is from the properties of the assessee held unauthorised by various parties, the receipt received by the assessee whether it is called compensation, damages etc. which is towards the loss of income is a revenue receipt and cannot be termed as a capital re…

DCIT, Circle - 35, Kolkata vs. M/S. Kolkata Port Trust, Kolkata

In the result, all the appeals of the assessee are partly allowed and COs of the assessee are dismissed and all the appeals of the revenue are dismissed

ITA 452/KOL/2018[2014-15]Status: DisposedITAT Kolkata21 Feb 2020AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 271(1)(c)Section 274

…contains the element of income in common parlance that will be included within the scope of definition of income under the provision notwithstanding the fact that there is no specific inclusion of such item in the definition. (CIT Vs. G. R. Karthikeyan (1993) 201 ITR 866). Therefore, since the receipt of the portion of the compensation of Rs. 101 cr. in question is from the properties of the assessee held unauthorised by various parties, the receipt received by the assessee whether it is called compensation, damages etc. which is towards the loss of income is a revenue receipt and cannot be termed as a capital re…

Kolkata Port Trust, Kolkata vs. ACIT, Circle - 35, Kolkata

In the result, all the appeals of the assessee are partly allowed and COs of the assessee are dismissed and all the appeals of the revenue are dismissed

ITA 369/KOL/2018[2014-15]Status: DisposedITAT Kolkata21 Feb 2020AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 271(1)(c)Section 274

…contains the element of income in common parlance that will be included within the scope of definition of income under the provision notwithstanding the fact that there is no specific inclusion of such item in the definition. (CIT Vs. G. R. Karthikeyan (1993) 201 ITR 866). Therefore, since the receipt of the portion of the compensation of Rs. 101 cr. in question is from the properties of the assessee held unauthorised by various parties, the receipt received by the assessee whether it is called compensation, damages etc. which is towards the loss of income is a revenue receipt and cannot be termed as a capital re…

Kolkata Port Trust, Kolkata vs. ACIT, Circle - 35, Kolkata

In the result, all the appeals of the assessee are partly allowed and COs of the assessee are dismissed and all the appeals of the revenue are dismissed

ITA 368/KOL/2018[2013-14]Status: DisposedITAT Kolkata21 Feb 2020AY 2013-14

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 271(1)(c)Section 274

…contains the element of income in common parlance that will be included within the scope of definition of income under the provision notwithstanding the fact that there is no specific inclusion of such item in the definition. (CIT Vs. G. R. Karthikeyan (1993) 201 ITR 866). Therefore, since the receipt of the portion of the compensation of Rs. 101 cr. in question is from the properties of the assessee held unauthorised by various parties, the receipt received by the assessee whether it is called compensation, damages etc. which is towards the loss of income is a revenue receipt and cannot be termed as a capital re…

Kolkata Port Trust, Kolkata vs. JCIT, Range - 35, Kolkata

In the result, all the appeals of the assessee are partly allowed and COs of the assessee are dismissed and all the appeals of the revenue are dismissed

ITA 367/KOL/2018[2012-13]Status: DisposedITAT Kolkata21 Feb 2020AY 2012-13

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 271(1)(c)Section 274

…contains the element of income in common parlance that will be included within the scope of definition of income under the provision notwithstanding the fact that there is no specific inclusion of such item in the definition. (CIT Vs. G. R. Karthikeyan (1993) 201 ITR 866). Therefore, since the receipt of the portion of the compensation of Rs. 101 cr. in question is from the properties of the assessee held unauthorised by various parties, the receipt received by the assessee whether it is called compensation, damages etc. which is towards the loss of income is a revenue receipt and cannot be termed as a capital re…

Shri.Rajmohan V.V., Kasargode vs. The ITO, Sp.Ward, Kannur

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

ITA 194/COCH/2019[2000-01]Status: DisposedITAT Cochin07 Aug 2019AY 2000-01

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: Sri.M.C.JacobFor Respondent: Smt.A.S.Bindhu, Sr.DR
Section 115BSection 143(3)Section 194

…served that skill was an integral part of the scheme and therefore the assessee was not liable to deduct the tax. Thus the decision is not applicable in the case of appellant. Similarly, in the decision relied upon by the appellant in CIT vs. G.R.Karthikeyan (201 ITR 866 (SC), again the issue was whether the tax is liable to be deducted where skill and endurance is a part of contest. It is not the case of appellant that any skill or endurance was part of the scheme in which he participated. The other ITA No.194/Coch/2019. 4 Sri.Rajmohan V.V. case relied upon by the appellant is CIT Vs. Dy. Director of Small Sav…

The ACIT, Kottayam vs. Kerala Forest Development Corporation Ltd, Kottayam

In the result, the appeals filed by the Revenue are dismissed

ITA 441/COCH/2018[2013-14]Status: DisposedITAT Cochin08 May 2019AY 2013-14

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 2(24)

…T (A) ought to have seen that the Judgment of Hon'ble High Court of Kerala in the case of Travancore Rubbers & Tea Co. Ltd. reported in (1996) 221 ITR 585 (KER.) which in turn relied on the decision of Apex court in the case of CIT Vs. G.R. Karthikeyan (1993) 201 ITR 866 wherein discussed the definition of income in detail and held that the definition of income as in section 2(24) is of inclusive character, the purpose is not to limit the meaning of the term but to widen its net and even id a receipt did not fall within the ambit of any of the clauses, it might still be income if it partook the nature of the inco…