What is CIT v. Shoorji Vallabhdas & Co. authority for?

Income tax is levied only on real income that actually materializes, not on hypothetical or notional income, even if accounting entries suggest otherwise. If no income results, there is no tax liability.

How many judgments cite CIT v. Shoorji Vallabhdas & Co.?

551 judgments on BharatTax cite CIT v. Shoorji Vallabhdas & Co. (46 ITR 144), spanning 2010 to 2026.

Which sections of the Income Tax Act does CIT v. Shoorji Vallabhdas & Co. come up under?

It is most often cited in judgments turning on Section 143(3), Section 147, Section 148, Section 37(1), Section 115JB, Section 153A.

CIT v. Shoorji Vallabhdas & Co. (46 ITR 144)

M/S. Claridge Commercial (P)Ltd, Kolkata vs. ITO, Ward-12(2), Kolkata

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1346/KOL/2012[2005-06]Status: DisposedITAT Kolkata22 May 2020AY 2005-06

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm]

Section 69B

…e by cheque for Golf Club Road Project. So, no addition was warranted u/s. 69B (undisclosed investment) of the Act. It is trite law that method of accounting cannot determine the true character of a transaction CIT Vs. MESSRS. SHOORJI VALLABHDAS AND CO (1962) 46 ITR 144 (SC). In the present case, the assessee has given advance for the property which was taken over by assessee’s sister concern and shown by assessee in its balance sheet and squared up in later year so no addition under section 69B of the Act is sustainable and therefore directed to be deleted. 5. The next ground of appeal of assessee is against th…

Afcons Infrastructure Ltd, Mumbai vs. Pr.CIT 9, Mumbai

The appeal stands allowed to the extent indicated in the order

ITA 3159/MUM/2019[2014-15]Status: DisposedITAT Mumbai17 Mar 2020AY 2014-15

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.3159/Mum/2019 (िनधा"रण वष" / Assessment Year:2014-15) Afcons Infrastructure Limited Pr. Cit-9 16, Afcons House Room No.214, Aaykar Bhavan बनाम/ 2Nd Floor, M.K. Road Shah Industrial Estate Vs. Veera Desai Road, Andheri West Mumbai. Mumbai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaca-9067-G (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ" की ओर से/ Appellant By : S/Shri J.D. Mistry & Nitesh Joshi-Ld. Ars ""थ"कीओरसे/Respondent By : Shri Anadi Varma-Ld.Cit-Dr सुनवाईकीतारीख/ : 05/09/2019 & 19/12/2019 Date Of Hearing घोषणाकीतारीख / : 17/03/2020 Date Of Pronouncement आदेश / O R D E R

For Appellant: S/Shri J.D. Mistry & Nitesh Joshi-Ld. ArsFor Respondent: Shri Anadi Varma-Ld.CIT-DR

Section 263

…he earlier Arbitration Act and appeals filed pursuant to such orders shall continue to be governed by the erstwhile Arbitration and Conciliation Act, 1996.The assessee placed reliance on the decision of Hon’ble Apex Court rendered in Shoorji Ballabhdas & Co. (46 ITR 144) and also on the decision of Excel Industries Ltd. (358 ITR 295) for the submissions that tax was to be levied only on real income. The interest on awards was hypothetical income and assessee did not have any right over such income and therefore, no real income accrued to the assessee on grant of arbitration award in favor of the assessee. The inc…

Green Habitats Private Limited, Mumbai vs. ACIT-3(1)(2), Mumbai

In the result, these appeals stand dismissed

ITA 5991/MUM/2017[2014-15]Status: DisposedITAT Mumbai06 Mar 2020AY 2014-15

Bench: Shri Shamim Yahya (Am) & Shri Ramlal Negi (Jm)

…eafter learned CIT(A) referred to following case laws to reject the assessee’s claim that no income has arisen :- i) CIT Vs. Roshanbabu Mohammed Hussein (144 Taxman 720) (Bom) ii) CIT Vs. Attili N. Rao (252 ITR 880) (SC) iii) CIT Vs. Shoorji Vallabhdas & Co. (46 ITR 144) 11. Thereafter learned CIT(A) also rejected the Assessing Officer’s reference that purchaser M/s. Evita Constructions Pvt. Ltd. and the assessee were related party. Accordingly, he concluded by directing the Assessing Officer to restrict the addition on account of amount received through e-auction of impugned land and property by HDFC to only 5%…

Universal Medicare P.Ltd, Mumbai vs. DCIT Cen Cir 3(2), Mumbai

In the result this ground of appeal is allowed for

ITA 4418/MUM/2016[2012-13]Status: DisposedITAT Mumbai06 Mar 2020AY 2012-13

Bench: Shri Pawan Singh & Shri S. Rifaur Rahmanuniversal Medicare Pvt. Ltd., Dcit, Central Cricle-3(2), Capsulation Premises, Mumbai (Erstwhile Asst. Sion Trombay Road, Deonar, Vs. Commissioner Of Income Mumbai-400088. Tax, Cc-20, Mumbai), Room No. 1923, 19Th Floor, Pan: Aaacu0717B Air India Building, Nariman Point, Mumbai-400021. Appellant Respondent C.O. No. 268/Mum/2017 (Assessment Year 2012-13) Dcit, Central Cricle-3(2), Universal Medicare Pvt. Ltd., Mumbai (Erstwhile Asst. Capsulation Premises, Commissioner Of Income Vs. Sion Trombay Road, Deonar, Tax, Cc-20, Mumbai), Room Mumbai-400088. No. 1923, 19Th Floor, Air Pan: Aaacu0717B India Building, Nariman Point, Mumbai-400021. Appellant Respondent Appellant By : Shri J.D. Mistry Senior Advocate With Shri Manish Shah Advocate Respondent By : Mrs. S. Padmaja (Cit-Dr)

For Appellant: Shri J.D. Mistry Senior Advocate with Shri Manish Shah AdvocateFor Respondent: Mrs. S. Padmaja (CIT-DR)

Section 143(3)Section 2Section 254(1)Section 50B

…the Hon’ble Court by referring to various judgments on the expression "accrues", and then held it is now well settled that income tax cannot be levied on hypothetical income. In CIT v. Shoorji Vallabhdas and Co. [CIT v. Shoorji Vallabhdas and Co., (1962) 46 ITR 144 (SC)] it was held that Income tax is a levy on income. No doubt, the Income Tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in book keeping, a…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 219/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2020AY 2013-14

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…ands of assessees, following mercantile system of accounting has been adjudicated by numerous judicial authorities including the Apex Court. The authoritative judgment on the subject was rendered by the Supreme Court in the case of CIT Vs. Shoorji Vallabhdas (46 ITR 144) wherein it was held as follows: "Income-tax is a levy on income. No doubt! the income-tax Act takes into account two points of time at which the liability to tax is attracted, vlz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all there cannot be a tax, even though in book-k…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 218/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2020AY 2012-13

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…ands of assessees, following mercantile system of accounting has been adjudicated by numerous judicial authorities including the Apex Court. The authoritative judgment on the subject was rendered by the Supreme Court in the case of CIT Vs. Shoorji Vallabhdas (46 ITR 144) wherein it was held as follows: "Income-tax is a levy on income. No doubt! the income-tax Act takes into account two points of time at which the liability to tax is attracted, vlz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all there cannot be a tax, even though in book-k…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 217/KOL/2018[2011-12]Status: DisposedITAT Kolkata28 Feb 2020AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…ands of assessees, following mercantile system of accounting has been adjudicated by numerous judicial authorities including the Apex Court. The authoritative judgment on the subject was rendered by the Supreme Court in the case of CIT Vs. Shoorji Vallabhdas (46 ITR 144) wherein it was held as follows: "Income-tax is a levy on income. No doubt! the income-tax Act takes into account two points of time at which the liability to tax is attracted, vlz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all there cannot be a tax, even though in book-k…

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

…ideration, so when it gets crystallised/finalised, then it will be treated as a revenue receipt and taxed in accordance to law. Coming to this conclusion, we also apply the real income theory which is propounded in CIT Vs. M/s. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 and Godhra Electricity Co. Ltd. Vs. CIT (1997) 225 ITR 746 and since no real income has arisen for the assessee in the year under consideration in respect of the sum of Rs.101 cr. (unrealised portion of the compensation) this amount need not be taxed in this assessment year, and we order accordingly. For this, we also rely on the decision of the H…

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

…ideration, so when it gets crystallised/finalised, then it will be treated as a revenue receipt and taxed in accordance to law. Coming to this conclusion, we also apply the real income theory which is propounded in CIT Vs. M/s. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 and Godhra Electricity Co. Ltd. Vs. CIT (1997) 225 ITR 746 and since no real income has arisen for the assessee in the year under consideration in respect of the sum of Rs.101 cr. (unrealised portion of the compensation) this amount need not be taxed in this assessment year, and we order accordingly. For this, we also rely on the decision of the H…

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

…ideration, so when it gets crystallised/finalised, then it will be treated as a revenue receipt and taxed in accordance to law. Coming to this conclusion, we also apply the real income theory which is propounded in CIT Vs. M/s. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 and Godhra Electricity Co. Ltd. Vs. CIT (1997) 225 ITR 746 and since no real income has arisen for the assessee in the year under consideration in respect of the sum of Rs.101 cr. (unrealised portion of the compensation) this amount need not be taxed in this assessment year, and we order accordingly. For this, we also rely on the decision of the H…

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

…ideration, so when it gets crystallised/finalised, then it will be treated as a revenue receipt and taxed in accordance to law. Coming to this conclusion, we also apply the real income theory which is propounded in CIT Vs. M/s. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 and Godhra Electricity Co. Ltd. Vs. CIT (1997) 225 ITR 746 and since no real income has arisen for the assessee in the year under consideration in respect of the sum of Rs.101 cr. (unrealised portion of the compensation) this amount need not be taxed in this assessment year, and we order accordingly. For this, we also rely on the decision of the H…

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

…ideration, so when it gets crystallised/finalised, then it will be treated as a revenue receipt and taxed in accordance to law. Coming to this conclusion, we also apply the real income theory which is propounded in CIT Vs. M/s. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 and Godhra Electricity Co. Ltd. Vs. CIT (1997) 225 ITR 746 and since no real income has arisen for the assessee in the year under consideration in respect of the sum of Rs.101 cr. (unrealised portion of the compensation) this amount need not be taxed in this assessment year, and we order accordingly. For this, we also rely on the decision of the H…

ACIT, New Delhi vs. M/S. Vic Enterprises Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 1893/DEL/2017[2011-12]Status: DisposedITAT Delhi07 Feb 2020AY 2011-12

Bench: Sh. N. K. Choudharydr. B. R. R. Kumarita No. 1893/Del/2017 : Asstt. Year : 2011-12 Assistant Commissioner Of Vs M/S Vic Enterprises Pvt. Ltd., 4Th Floor, Punjabi Bhawan, 10, Income Tax, Circle-26(1), New Delhi-110002 Rouse Avenue, New Delhi (Appellant) (Respondent) Pan No. Aaacv0132B Assessee By : Sh. M. P. Rastogi, Adv. Revenue By : Sh. H. K. Choudhary, Cit Dr Date Of Hearing: 06.02.2020 Date Of Pronouncement: 07.02.2020

For Appellant: Sh. M. P. Rastogi, AdvFor Respondent: Sh. H. K. Choudhary, CIT DR

Section 10(38)Section 143(3)Section 14A

…the assessee but the Learned CIT(Appeals) has accepted the same with this finding that it is a settled principle of law that only real income is to be taxed. In this regard, he has followed the ratios laid down in the case of CIT vs. Shoorji Ballabdass & Co., 46 ITR 144 (S.C). We thus do not find reason to interfere with the First Appellate Order in this regard. The same is upheld. The ground No. 3 is accordingly rejected. 23. In result, the appeal preferred by the Revenue is dismissed. 24. The assessee (ITA No. 2240/Del/2010) on the other hand has basically questioned the First Appellate Order mainly on two gr…

Housing and Urban Development Corporation Ltd Through Its Authorized Signatory vs. Additional Commissioner of Income Tax Range 12 New Delhi

The appeal is allowed

ITA/541/2019HC Delhi06 Feb 2020

Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA

Section 143(3)Section 260ASection 263

…a).The observations made in Paragraph Nos. 18 and 19 of the said case are of relevance, and the same read as under: 17.“First of all, it is now well settled that income tax cannot be levied on hypothetical income. In CIT v. Shoorji Vallabhdas & Co. [1962]46 ITR 144(SC) it was held as follows:- Income-tax is a levy on income. No doubt, the Income-tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in…