CIT v. Shoorji Vallabhdas and Company

Gautam R. Chadha Through L/H . Mrs. Ratna Chadha, New Delhi vs. DCIT, New Delhi

In the result, the appeal is dismissed

Bench: : Shri H.S. Sidhu & Shri L.P. Sahu

…been expressed by this court in Devsons (Supra). It was observed as under: "... Even in the mercantile system of accounting it is the resl income which has accrued in a practical sense that is to be brought to tax. In CIT v Shoorji Vallabhdas and Co. [1959] 36 ITR 25, the Bombay High Court held that the question whether the income accrued or not is not a mere matter of cogency of the entries made in the account books of the assessee, but is essentially one of substance and of the real nature of what happened. A mere book entry is not conclusive of the question whether the assessee had become entitled to the sum…

DCIT, New Delhi vs. M/S. Ferrous Infrastructure Pvt. Ltd., Gurgaon

In the result, the Appeal filed by the Revenue stands dismissed

Bench: Shri H.S. Sidhu & Shri O.P. Kant

…t by the assessee firm to the managed companies. The reduction was a part of the agreement entered into by the assessee firm to secure a long-term managing agency arrangement for the two companies which it had floated.-CIT vs. Shoorji Vallabhdas & Co.(1959) 36 ITR 25 (80m) : TC39R.740 affirmed; CIT vs. Chamanlal Mangaldas & Co.(1960) 39 ITR 8 (SC) : TC39R.745 applied." In CIT vs Bokaro Steel Ltd. 2361TR 315 {SC} held as under: "The assessee had shown in its books of accounts a sum of Rs. 7,39,232 as income from interest received from H. Ltd. for the eight locomotives supplied by the assessee-company to had…

Commissioner of Income Tax vs. Gautam R. Chadha

Appeals stand disposed of

…een expressed by this court in Devsons (Supra). It was observed as under: “… Even in the mercantile system of accounting it is the real income which has accrued in a practical sense that is to be brought to tax. In CIT v Shoorji Vallabhdas and Co. [1959] 36 ITR 25, the Bombay High Court held that the question whether the income accrued or not is not a mere matter of cogency of the entries made in the account books of the assessee, but is essentially one of substance and of the real nature of what happened. A mere book 2011:DHC:3752-DB ITA Nos.310/2009, 358/2011 & 1115/2010…

M/s. De vs. ons Pvt. Ltd

…treat the accounts of a continuing business in a consistent manner. Even in the mercantile system of accounting it is the real income which has accrued in a practical sense that is to be brought to tax. In CIT vs. Shoorji Vallabhdas and Company (1959) 36 ITR 25, the Bombay High Court held that the question whether the income accrued or not is not a mere matter of cogency of the entries made in the account books of the assessee, but is essentially one of substance and of the real nature of what happened. A mere book entry is not conclusive of the question whether the assessee had become entitled to…

M/S De vs. Ons Pvt Ltdvs.Commissioner of Income Tax &

…treat the accounts of a continuing business in a consistent manner. Even in the mercantile system of accounting it is the real income which has accrued in a practical sense that is to be brought to tax. In CIT vs. Shoorji Vallabhdas and Company (1959) 36 ITR 25, the Bombay High Court held that the question whether the income accrued or not is not a mere matter of cogency of the entries made in the account books of the assessee, but is essentially one of substance and of the real nature of what happened. A mere book entry is not conclusive of the question whether the assessee had become entitled to…

M/s. De vs. ons Pvt. Ltd

…treat the accounts of a continuing business in a consistent manner. Even in the mercantile system of accounting it is the real income which has accrued in a practical sense that is to be brought to tax. In CIT vs. Shoorji Vallabhdas and Company (1959) 36 ITR 25, the Bombay High Court held that the question whether the income accrued or not is not a mere matter of cogency of the entries made in the account books of the assessee, but is essentially one of substance and of the real nature of what happened. A mere book entry is not conclusive of the question whether the assessee had become entitled to…