CIT v. Mogul Lines Ltd.

46 ITR 590High Court1962#8478 most cited

What is CIT v. Mogul Lines Ltd. authority for?

Taxability of an income or expenditure is determined by the provisions of the Income Tax Act, not by the accounting entries made by the assessee. The actual nature of the transaction under the law dictates tax consequences, irrespective of how it is reflected in the books of account.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2025.

Also referred to as

CIT v. Mogul Lines Ltd. · 46 ITR 590 · Bombay High Court · taxability · accounting entries · provisions of law · income · expenditure · profit · loss

Sections most often in play

Section 144C(1)Section 263Section 271(1)(c)Section 36(1)(viia)Section 41(4)

Issues it is cited on

section 263section 26prescribedpersoncompanysection 143(3)indiatotal incomebusinessinterest

Judgments citing CIT v. Mogul Lines Ltd.

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)

…ission dated 16.02.2016, with regard to book entry, the assessee has relied on the following decisions: i. CIT v. Hiralal Mittal & Sons, (1972) 86 ITR 463(AII) ii. CIT v. Chunilal V. Mehta & Sons P. Ltd. (1971) 82 ITR 54(SC) iii. CIT v. Mogul Line Ltd. (1963)46 ITR 590,600(Bom) iv. State Bank of India Vs. CIT(1996) 157 ITR 67 (SC) The issue involved in the above decisions is summarized hereunder. (i) CIT v. Hiralal Mittal & Sons, (1972) 86 ITR 463(АП) Page 16 of 33 Rajkot Dist. Co-op. Bank Ltd. The issue in the cited case was whether the assessee was entitled to the deduction of the interest claimed even tho…

M/S. Bandhan Bank Ltd. (Erstwhile Ghosh Finance Ltd), Kolkata vs. DCIT, Cir-5(1), Kol, Kolkata

In the result, the appeal of the assessee is allowed

ITA 465/KOL/2023[2016-17]Status: DisposedITAT Kolkata26 Aug 2024AY 2016-17

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2016-17

For Appellant: Shri Biswanath Paul, FCAFor Respondent: Shri Subhro Das, Addl. CIT, Sr. DR
Section 143(3)Section 17(2)(vi)Section 192Section 250Section 37

…e deducted/added. The assessee relied upon the following judicial pronouncements in this regard. (a) Tuticorin Alkali Chemicals and Fertilizers Ltd. Vs. CIT [227 ITR 172 (SC)] (b) CIT Vs. Shoorji Vallabhdas & Co. [46 ITR 144 (SC)] (c) CIT Vs. Mogul Line Ltd. [46 ITR 590 (Bom) 8. The Ld. AO, vide paragraph 7.3 onwards of the assessment order, has discussed the matter. The Ld. AO examined the provisions of section 37 of the Act and relied upon several decisions and rejected the claim of the assessee as according to him, the same was not allowable. Further, he mentions that the Delhi ITAT in the case of ACIT Vs Ran…

Shri Rajkot District Cooperative Bank Ltd., Rajkot-Gujarat vs. The Pr. Commr. of Income Tax-1, Rajkot-Gujarat

In the result, appeal of the assessee is dismissed

ITA 123/RJT/2016[2011-12]Status: DisposedITAT Rajkot15 Feb 2023AY 2011-12

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year :2011-12 Shri Rajkot District Cooperative Vs. Pr.Cit, Rajkot-1 Bank Ltd. Rajkot. ‘Jilla Bank Bhavan’, Kasturba Road Opp: Chaudhari High School Rajkot. Pan : Aaaar 0564 K 0 अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assesseeby : Shri S.N. Soparkar, Ld.Ar Revenue By : Shri Shramdeep Sinha, Ld.Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 17/11/2022 घोषणा क" तार"ख /Date Of Pronouncement: 15/02/2023

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR
Section 143(3)Section 263Section 36

…ission dated 16.02.2016, with regard to book entry, the assessee has relied on the following decisions: i. CIT v. HiraLal Mittal & Sons, (1972) 86 ITR 463(AII) ii. CIT v. Chunilal V. Mehta & Sons P. Ltd. (1971) 82 ITR 54(SC) iii. CIT v. Mogul Line Ltd. (1963)46 ITR 590,600(Bom) iv. State Bank of India Vs. CIT(1996) 157 ITR 67 (SC) The issue involved in the above decisions is summarized hereunder: (i) CIT v. HiraLal Mittal & Sons, (1972) 86 ITR 463(AII) The issue in the cited case was whether the assessee was entitled to the deduction of the interest claimed even though it had not made the necessary entries in…

Price Waterhouse & Co., [Now Known As Price Waterhouse & Co. Chartered Accountants LLP], Kolkata vs. DCIT, Circle - 22, Kolkata

In the result, appeal filed by the assessee is allowed

ITA 1985/KOL/2018[2009-10]Status: DisposedITAT Kolkata05 Feb 2020AY 2009-10

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am Vs. Dcit, Circle-22, Kolkata Price Waterhouse & Co, Kolkata (Now Versus Known As Price Waterhouse & Co Chartered Accountants Llp)

For Appellant: Shri C.S Agarwal, Sr. Adv., K.M. Gupta, Adv. & Bikash KumarFor Respondent: Dr. P. K. Srihari, CIT(DR)
Section 143(1)Section 147Section 148Section 234BSection 28Section 44A

…h is decisive of its being taxable". The nature of non refundable amount of Rs.31.13 Crs being casual and non recurring the same was taxable and prima facie the same is assessable under the head "income from other sources". In case of CIT Vs Mogul Lines Ltd. (46 ITR 590) the Hon'ble Bombay High Court has held that the matter of taxability cannot be decided on the basis of entries which the assessee may choose to make in his account but has to be decided in accordance with the provision of the Law. Hence there cannot be a dispute that whether the said sum of Rs.31.13 Crs is taxable or not as it is fully taxable un…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2416/CHNY/2019[2016-17]Status: DisposedITAT Chennai12 Dec 2019AY 2016-17

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…income which was claimed as deduction in the computation of income. The notional entries passed by the assessee cannot result in any income or expenditure. In this regard, we refer the decision of the Bombay High Court in the case of CIT v. Mogul Lines Ltd. (46 ITR 590)(Bom), wherein it was observed that the matter of taxability could not be decided on the basis of the entries, which the assessee might choose to make in his account, but had to be decided in accordance with the provisions of law. What would determine taxability is not whether the assessee has shown a particular item as a profit or loss in the acc…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2415/CHNY/2019[2015-16]Status: DisposedITAT Chennai12 Dec 2019AY 2015-16

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…income which was claimed as deduction in the computation of income. The notional entries passed by the assessee cannot result in any income or expenditure. In this regard, we refer the decision of the Bombay High Court in the case of CIT v. Mogul Lines Ltd. (46 ITR 590)(Bom), wherein it was observed that the matter of taxability could not be decided on the basis of the entries, which the assessee might choose to make in his account, but had to be decided in accordance with the provisions of law. What would determine taxability is not whether the assessee has shown a particular item as a profit or loss in the acc…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2414/CHNY/2019[2014-15]Status: DisposedITAT Chennai12 Dec 2019AY 2014-15

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…income which was claimed as deduction in the computation of income. The notional entries passed by the assessee cannot result in any income or expenditure. In this regard, we refer the decision of the Bombay High Court in the case of CIT v. Mogul Lines Ltd. (46 ITR 590)(Bom), wherein it was observed that the matter of taxability could not be decided on the basis of the entries, which the assessee might choose to make in his account, but had to be decided in accordance with the provisions of law. What would determine taxability is not whether the assessee has shown a particular item as a profit or loss in the acc…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2413/CHNY/2019[2012-13]Status: DisposedITAT Chennai12 Dec 2019AY 2012-13

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…income which was claimed as deduction in the computation of income. The notional entries passed by the assessee cannot result in any income or expenditure. In this regard, we refer the decision of the Bombay High Court in the case of CIT v. Mogul Lines Ltd. (46 ITR 590)(Bom), wherein it was observed that the matter of taxability could not be decided on the basis of the entries, which the assessee might choose to make in his account, but had to be decided in accordance with the provisions of law. What would determine taxability is not whether the assessee has shown a particular item as a profit or loss in the acc…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2412/CHNY/2019[2011-12]Status: DisposedITAT Chennai12 Dec 2019AY 2011-12

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…income which was claimed as deduction in the computation of income. The notional entries passed by the assessee cannot result in any income or expenditure. In this regard, we refer the decision of the Bombay High Court in the case of CIT v. Mogul Lines Ltd. (46 ITR 590)(Bom), wherein it was observed that the matter of taxability could not be decided on the basis of the entries, which the assessee might choose to make in his account, but had to be decided in accordance with the provisions of law. What would determine taxability is not whether the assessee has shown a particular item as a profit or loss in the acc…

DCIT 1(1)(2), Mumbai vs. Finproject India P.Ltd, Mumbai

In the result appeal of the Revenue is dismissed

ITA 4860/MUM/2016[2012-13]Status: DisposedITAT Mumbai02 May 2018AY 2012-13

Bench: Shri C.N Prasad & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.4860/Mum/2016 (नििाारण वर्ा / Assessment Year : 2012-13)

For Appellant: Shri Prem Prakash PareekFor Respondent: Shri Rajat Mittal (DR)
Section 142(1)Section 143(2)Section 143(3)Section 56(1)Section 68

…T [1986] 158 ITR 810(Raj.). Book entries - the matter of taxability cannot be decided on the basis of the entries which the assesse may choose to make in his accounts but has to be decided in accordance with the previous of law - CIT v. Mogul Line Ltd. [1962] 46 ITR 590 (Bom.)- Alternatively , in the opinion of the AO the share premium charged was in excess of the intrinsic valuation of shares, additions were confirmed by the AO u/s. 68 of the Act, as the assessee , in the opinion of the AO , could not offer satisfactory explanation with respect to the nature of credit entry and as per AO the assessee did not ju…

ACIT, Jaipur vs. State Bank of Bikaner & Jaipur, Jaipur

Appeal is dismissed

ITA 438/JPR/2009[2006-07]Status: DisposedITAT Jaipur29 Aug 2017AY 2006-07
For Appellant: Shri P.C. Parwal (CA)For Respondent: Smt. Rolly Agarwal (CIT)
Section 10Section 143(3)Section 14A

…that the Ld. CIT(A) himself accepted that it is not a case failing u/s 41(1). Thus, section 41(1) is not applicable. 5.3 Ld. Counsel further placed reliance on the following cases:- CIT vs. Shoorji Vallabhdas & Co. 46 ITR 144(SC), CIT Vs. Mogul Line Ltd. 46 ITR 590 (Bom), Kedarnath Jute Manuf. Co. Ltd. Vs. CIT 82 ITR 363 (SC), CIT Vs. Industrial Credit & Development Syndicate Ltd. 284 ITR 310 (Karnataka)(HC) 5.4 Ld. Counsel submitted that the ratio laid down in those cases it can be noticed that the amount credited to the Profit and Loss Account and thereafter appropriated to General Reserves is not the…

State Bank of Bikaner & Jaipur, Jaipur vs. ACIT, Jaipur

Appeal is dismissed

ITA 280/JPR/2009[2006-07]Status: DisposedITAT Jaipur29 Aug 2017AY 2006-07
For Appellant: Shri P.C. Parwal (CA)For Respondent: Smt. Rolly Agarwal (CIT)
Section 10Section 143(3)Section 14A

…that the Ld. CIT(A) himself accepted that it is not a case failing u/s 41(1). Thus, section 41(1) is not applicable. 5.3 Ld. Counsel further placed reliance on the following cases:- CIT vs. Shoorji Vallabhdas & Co. 46 ITR 144(SC), CIT Vs. Mogul Line Ltd. 46 ITR 590 (Bom), Kedarnath Jute Manuf. Co. Ltd. Vs. CIT 82 ITR 363 (SC), CIT Vs. Industrial Credit & Development Syndicate Ltd. 284 ITR 310 (Karnataka)(HC) 5.4 Ld. Counsel submitted that the ratio laid down in those cases it can be noticed that the amount credited to the Profit and Loss Account and thereafter appropriated to General Reserves is not the…

Susanta Biswas, Kolkata vs. ITO, Ward-50(4), Kolkata

In the result, the appeal of the assessee is allowed

ITA 1338/KOL/2012[2006-07]Status: DisposedITAT Kolkata03 Feb 2017AY 2006-07

Bench: : Shri M.Balaganesh & Shri S.S.Viswanethra Ravia.Y 2006-07

For Appellant: Shri H.S Bhattacharjee,AR for the assesseeFor Respondent: Shri Nicholas Murmu, JCIT, ld.DR
Section 133(6)Section 143(2)Section 143(3)

…the proposition that taxability has to be decided in accordance with the provisions of law and not on the basis of the entries which the assessee may choose to make in his accounts and placed on reliance in the case of CIT v. Mogul Line Ltd reported in [1962] 46 ITR 590 (Bom). 9. The Assessee submitted that accounting practice is not relevant while computing income under the income tax law and that principle of accountancy cannot override the provisions of Tax Statutes and placed reliance on the interpretation rendered by the Hon’ble Supreme Court in the 4 Susanta Biswas. case of Tuticorn Alkali Chemicals & Fer…

CIT v. Mogul Lines Ltd. (46 ITR 590) — Cited in 13 Judgments | BharatTax