CIT v. Shoorji Vallabhdas & Co.

46 ITR 144Supreme Court of India1962#114 most cited

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.

551

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2010 to 2026.

Also referred to as

CIT v. Shoorji Vallabhdas & Co. · 46 ITR 144 · real income theory · notional income · hypothetical income · income tax levy · accrual of income · receipt of income · Section 48 · Income Tax Act 1961

Sections most often in play

Section 143(3)Section 147Section 148Section 37(1)Section 115JBSection 153ASection 1961Section 14A

Issues it is cited on

real income theoryright to receivemercantile system of accountingsection 48section 45section 35section 28loose papersliable to taxsection 145capital expendituresection 37(1)

Judgments citing CIT v. Shoorji Vallabhdas & Co.

Shah Rukh Khan, Mumbai vs. ACIT Cen Cir 29, Mumbai

In the result, appeal of the assessee is partly allowed, as above

ITA 4763/MUM/2013[2010-11]Status: DisposedITAT Mumbai17 Mar 2017AY 2010-11

Bench: Shri G.S.Pannu & Shri Amit Shukla

For Appellant: Shri Hiro RaiFor Respondent: Shri Jasbir Chouhan
Section 143(3)Section 234B

…fication for Assessing Officer to assume that assessee had earned any income thereof. The learned representative relied upon the following judgments in support of the proposition that only real income is required to be taxed :- i) Shoorji Vallabhdas and Co., 46 ITR 144 (SC) ii) Godhra Electricity Co. Ltd., 225 ITR 746 (SC) 11. On the other hand, the ld. CIT-DR appearing for the Revenue has reiterated the stand of the lower authorities, which we have already noted in the earlier paras and is not being repeated for the sake of brevity. 12. We have carefully considered the rival submissions. A perusal of the asse…

DCIT 6(2)(1), Mumbai vs. Deloitte & Touche Consulting Inida P. Ltdervice India P.Ltd, Mumbai

The appeals of the Revenue are dismissed

ITA 4136/MUM/2015[2011-12]Status: DisposedITAT Mumbai15 Mar 2017AY 2011-12

Bench: Shri Joginder Singh & Shri N.K.Pradhan

Section 260Section 28

…convertible into money or not, arising from business or the exercise of a profession; ……………” 17. First of all, it is now well settled that income tax cannot be levied on hypothetical income. In Commissioner of Income Tax v. Shoorji Vallabhdas and 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 Deloitte Corporate Finance Service India Pvt. Ltd., 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…

DCIT, Circle-1, Kolkata vs. M/S Mcnally Bharati Engineering Co.Ltd., Kolkata

In the result the appeal by the assessee is partly allowed

ITA 532/KOL/2012[2007-2008]Status: DisposedITAT Kolkata01 Mar 2017AY 2007-2008

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] I.T.A No.100/Kol/2011 Assessment Year : 2006-07

For Appellant: Shri Soumen Adak, FCAFor Respondent: Shri Vijayendra Kumar, JCIT
Section 115JSection 43B

…of accounts. In this regard the 14 15 ITA No.100/Kol/2011& C.O.No.13/Kol/2011 532&217,533&218/Kol/2012 M/s. Mcnally Bharat Engg.Co.Ltd A.Yr.2006-07 CIT(A) placed reliance on the decision of the Hon’ble Supreme Court in the case of Shoorji Vallabhdas and Co. 46 ITR 144 (SC). 33. With regard to including the retention money in computing the book profits the CIT(A) held as follows :- “11.9 Whether the above amount needs to be excluded in computing Book Profit u/s 115JB or not, the above issue is only academic as once it is upheld that the income has not accrued to the assessee, the same cannot be brought to tax u…

Tata Tea Limited, Kolkata vs. DCIT, C Ircle- 4, Kolkata

In the result, the appeal of the revenue in ITA No

ITA 511/KOL/2010[2004-05]Status: DisposedITAT Kolkata03 Feb 2017AY 2004-05

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: S/Shri Manish Sheth & Prasun Kr. Maity, ARsFor Respondent: N o n e
Section 143(3)

…Act, there is no concept of subjecting to tax any notional income which had not accrued to the assessee, in support of this proposition, placed reliance on the decision of the Hon’ble Apex Court in the case of CIT vs Shoorji Vallabhdas & Co reported in (1962) 46 ITR 144 (SC). The assessee also stated that the amount was advanced out of its surplus fund over the period FY 1989-90 to 1993-94 as detailed below:- F. Year Amount advanced Opening Share Amount added to Total share capital capital & Reserve Reserve during the & Reserve year Rs./Lakhs 1989-90 3.96 9588.18 3123.51 12711.69 1990-91 422.07 12711.69 3564.96 1…

DCIT, Circle - 4, Kolkata vs. M/S. Tata Tea Ltd., Kolkata

In the result, the appeal of the revenue in ITA No

ITA 2105/KOL/2010[2004-05]Status: DisposedITAT Kolkata03 Feb 2017AY 2004-05

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: S/Shri Manish Sheth & Prasun Kr. Maity, ARsFor Respondent: N o n e
Section 143(3)

…Act, there is no concept of subjecting to tax any notional income which had not accrued to the assessee, in support of this proposition, placed reliance on the decision of the Hon’ble Apex Court in the case of CIT vs Shoorji Vallabhdas & Co reported in (1962) 46 ITR 144 (SC). The assessee also stated that the amount was advanced out of its surplus fund over the period FY 1989-90 to 1993-94 as detailed below:- F. Year Amount advanced Opening Share Amount added to Total share capital capital & Reserve Reserve during the & Reserve year Rs./Lakhs 1989-90 3.96 9588.18 3123.51 12711.69 1990-91 422.07 12711.69 3564.96 1…

Amit H Jhaveri, Mumbai vs. ACIT 16(1), Mumbai

In the result, appeal filed by the assessee in ITA No

ITA 4051/MUM/2016[2002-03]Status: DisposedITAT Mumbai31 Jan 2017AY 2002-03

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4051/Mum/2016 ("नधा"रण वष" / Assessment Year : 2002-03) Amit H. Jhaveri, Asst. Commissioner Of बनाम/ 412 Neo Corporate Plaza, Income Tax – 16(1), V. Ramchandra Lane Extension, Mumbai. Kaachpada Malad (W), Mumbai – 400 064. "थायी लेखा सं./Pan : Aacpj3117F (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Appellant: NoneFor Respondent: Shri Saurabhkumar Rai
Section 143(3)

…two persons also, no new evidences are filed during these proceedings. 5.8 The appellant also filed copies of some case laws in support of his case. (CIT Vs. Chamanlal Mangaldas & Co AIR 1960 SC 1336 dated 19-02-1960, CIT vs. Shoorji Vallabhadas and Co 1962 46 ITR 144 SC dated 27-()3-199,2). The cases mostly discussed the context of the principal amount is in dispute and is not recoverable. The case laws filed in support of his case are applicable only when the appellant proves that in his case the recovery of principal amount is in doubt. Therefore the copies of the set of case laws filed will not come to the…

Asian Paints Ltd, Mumbai vs. DCIT Ltu, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 3289/MUM/2015[2006-07]Status: DisposedITAT Mumbai11 Jan 2017AY 2006-07

Bench: Shri G.S.Pannu & Shri Ram Lal Negiasian Paints Ltd. 6A, Shanti Nagar, Santacruz (East), Mumbai 400 400 055 Pan: Aaaca 3622K ...... Appellant Vs. Dy.Commissioner Income-Tax Ltu, Large Tax Payer Unit (Ltu), 29Th Floor, World Trade Centre -1, Cuffe Parade, Mumbai 400 006 .... Respondent Appellant By : Shri K. Shivram Respondent By : Shri N.K.Chand Date Of Hearing : 27/10/2016 Date Of Pronouncement : 11 /01/2017

For Appellant: Shri K. ShivramFor Respondent: Shri N.K.Chand
Section 143(3)Section 41(1)Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “K”, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER Asian Paints Ltd. 6A, Shanti Nagar, Santacruz (East), Mumbai 400 400 055 PAN: AAACA 3622K ...... Appellant Vs. Dy.Commissioner Income-Tax LTU, Large Tax Payer Unit (LTU), 29th Floor, World Trade Centre -1, Cuffe Parade, Mumbai 400 006 .... Respondent Appellant by : Shri K. Shivram Respondent by : Shri N.K.Chand Date of hearing : 27/10/2016 Date of pronouncement : 11 /01/2017 ORDER PER G.S.PANNU,A.M: The captioned appeal filed by the assessee pertaining to A.Y. 2006- 0…

Kp Sanghvi Infrastructure P.Ltd( Formelry Knwon As Somnath Project Organizers P.Ltd, Mumbai vs. ITO WD 5(2)2, Mumbai

In the result, the appeal filed by the assessee in ITA No

ITA 6157/MUM/2012[2006-07]Status: DisposedITAT Mumbai15 Dec 2016AY 2006-07

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.6157/Mum/2012 ("नधा"रण वष" / Assessment Year : 2006-07) K.P. Sanghvi Infrastructures Income Tax Officer – Ward बनाम/ Private Limited, – 5(2)(2), V. (Formerly Known As Somnath 5 Th Floor, Project Organizers Private Aayakar Bhavan, Limited) M.K. Road, 1301, Prasad Chambers, Mumbai 400 020. Opera House, Mumbai – 400 004. "थायी लेखा सं./Pan : Aafcs5184H (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri Vikash Kumar Agarwal
Section 143(3)

…in the hands of the assessee. It was submitted that reversal of entries in the subsequent year does not result in real income/expenses. In support, the assessee relied on the following cases:- ITA 6157/Mum/2012 8 1. CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144,148 (SC) 2. State Bank of Travancore v. CIT [1986] 158 ITR 102 (SC) 3. CIT v. Kerala State Drugs and Pharmaceuticals Ltd. (1991) (192)- ITR -0001 - 4. CIT v. Bokaro Steels Ltd. [(1999) 2361TR 315,323-24 (SC)], 5. DCIT v. Reliance Petroleum Ltd. 2006-(100)-TTJ -0565 -TBOM / Thus, it was submitted that it was not real income earned by the assessee…

DCIT, New Delhi vs. M/S. Janta Co- Operative Bank Ltd., New Delhi

Appeal of the Revenue is dismissed

ITA 2074/DEL/2012[2008-09]Status: DisposedITAT Delhi06 Dec 2016AY 2008-09

Bench: Shri R. S. Syal & Smt Suchitra Kamble

Section 41(1)

…for Assessment Year 2008-09. 2. The grounds of appeal are as follows:- “1. On the facts and in circumstances of the case, Ld.CIT(A) XXV, New Delhi has erred in deleting the addition of Rs.42,12,605/- following the judgment of CIT vs. Shoorji Vallabhdas & Co. 46 ITR 144 (SC) 2 (1962) which stands distinguished by the judgment in the case of Morvi Industries Ltd. Vs. CIT (1971) 82 ITR 835 of Supreme Court.”. “On the facts and in circumstances of the case, Ld.CIT(A) has erred in deleting the addition of Rs.42,12,605/- made by A. On account of interest on NPAs ignoring the ratio of the case of State Bank of Travan…

I.T.O.WD-1(4), Kolkata vs. M/S Blue Heaven Griha Nirman Pvt. Ltd., Kolkata

In the result, the appeal by the Revenue is dismissed

ITA 2270/KOL/2013[2008-09]Status: DisposedITAT Kolkata16 Nov 2016AY 2008-09

Bench: Shri P. M. Jagtap, Am & Shri K. Narasimha Chary, Jm] I.T.A No. 2270/Kol/2013 Assessment Year: 2008-09 Income-Tax Officer, Wd-1(4), Kolkata. Vs. Blue Heaven Griha Nirman Pvt. Ltd. (Pan: Aaccb3287F) (Appellant) (Respondent)

For Appellant: Shri Niraj Kumar, CIT, DRFor Respondent: Shri S. Jhajharia, CA & Shri Sujoy Sen, Advocate
Section 143(1)Section 143(3)Section 147

…y, it is a settled principle of income-tax law that it is the real income, which is taxable under the Act. This proposition was enunciated in CITv. Birla Gwalior (P.) Ltd [1973J 89 ITR 266 (SC), which was pronounced in CIT v. Shoorji Vallabhdas and CO. [1962J 46 ITR 144 (Se)." 9. Further more, along with the assessee, one M/s. Orchid Griha Nirman Pvt. Ltd., one of the partners of M/S.Salarpuria Soft Zone also faced the same situation of reassessment under section 147 of the Act. They have challenged the order under section 147 of the Act in I.T.O. Vs. M/s. Orchid Griha Nirman Pvt. Ltd. ITA No.2269/Kol/2013. A coo…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1130/KOL/2014[2011-12]Status: DisposedITAT Kolkata26 Oct 2016AY 2011-12

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…ifferent as the issue here is interest received on deposit made out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itsel…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1129/KOL/2014[2010-11]Status: DisposedITAT Kolkata26 Oct 2016AY 2010-11

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…ifferent as the issue here is interest received on deposit made out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itsel…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1128/KOL/2014[2009-2010]Status: DisposedITAT Kolkata26 Oct 2016AY 2009-2010

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…ifferent as the issue here is interest received on deposit made out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itsel…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1127/KOL/2014[]Status: DisposedITAT Kolkata26 Oct 2016

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…ifferent as the issue here is interest received on deposit made out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itsel…

S. Mansukhlal & Co., Mumbai vs. DCIT 14(2), Mumbai

In the result, the appeal filed by the assessee in ITA No

ITA 4793/MUM/2014[2010-11]Status: DisposedITAT Mumbai24 Oct 2016AY 2010-11

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4793/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) M/S. S. Mansukhlal & Co., The Deputy Commissioner बनाम/ Srbc & Associates Llp, Of Income Tax –14(2), V. Chartered Accountants, Earnest House, Iii Floor, 12 Th Floor, The Ruby, Nariman Point, 29, Senapati Bapat Marg, Mumbai – 400 021. Dadar (West), Mumbai – 400 028. "थायी लेखा सं./Pan : Aahfs9459A .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Sanjeev Kashyap (D.R.)
Section 143(3)Section 14A

…or perquisite, whether convertible into money or not, arising from business or the exercise of a profession; ** ** ' 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 book-ke…

D.C.I.T Cir - 4, Kolkata vs. M/S Tata Tea Limited, Kolkata

In the result, the appeals in ITA No

ITA 2006/KOL/2013[2006-07]Status: DisposedITAT Kolkata21 Oct 2016AY 2006-07

Bench: Shri M.Balaganesh & Shri S.S. Viswanethra Ravi

Section 43(6)

…6, 2007 & 2008/Kol/2013 M/s. Tata Tea Limited 4 like to inform you that in the income Tax Law there is no concept of subjecting to tax any notional income. which does not accrue in favour of the assessee. We invite your attention to the decision reported in 46 ITR 144 (SC) in this regard. We would therefore request you not to make any addition on this account.” 7. The AO basing on the assessments for AY’s 1999-2000 to 2003-2004 wherein, the respondent Revenue rejected the same submissions as made above and added interest to an extent out of Rs.71.09 lakhs out Rs.989.21 lakhs to the income of the assessee. 8.…

I.T.O WD - 1(4), Kolkata vs. M/S Orchid Griha Nirman, Kolkata

In the result, the appeal by the Revenue is dismissed

ITA 2269/KOL/2013[2008-09]Status: DisposedITAT Kolkata19 Oct 2016AY 2008-09

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.A No. 2269/Kol/2013 Assessment Year : 2008-09 I.T.O., Ward-1(4) -Vs.- M/S. Orchid Griha Nirman Pvt. Ltd. Kolkata Kolkata [Pan : Aaaco 7148 L] (Respondent) (Appellant) For The Appellant : Shri Angam Shaiza, Cit For The Respondent : (I) Shri J.P.Khaitan, Sr.Advocate (Ii)Shri S.Jhajharia, Fca (Iii) Shri Sujoy Sen, Advocate

For Appellant: Shri Angam Shaiza, CITFor Respondent: (i) Shri J.P.Khaitan, Sr.Advocate
Section 143(1)Section 147Section 148

…y, it is a settled principle of income-tax law that it is the real income, which is taxable under the Act. This proposition was enunciated in CITv. Birla Gwalior (P.) Ltd [1973J 89 ITR 266 (SC), which was pronounced in CIT v. Shoorji Vallabhdas and CO. [1962J 46 ITR 144 (Se)." It was argued that the above observations with reference to valuation of stock at market value higher than cost are equally applicable in respect of any other asset. 20. It was submitted that revaluation by the said firm was made for financial purposes and no tax advantage of any kind was sought to be derived thereby. The ITO has himself…

Aditya Birla Telecom Limited, Mumbai vs. Dy. Comm of Income Tax 10(1), Mumbai

In the result appeal of the assessee is allowed in part in terms indicated hereinabove

ITA 341/MUM/2014[2010-11]Status: DisposedITAT Mumbai19 Oct 2016AY 2010-11
For Appellant: Shri Jehangir Mistri, Sr. AdvocateFor Respondent: Shri Suresh Kumar, Sp. Counsel
Section 143(3)Section 2Section 391Section 394Section 45Section 47

…आयकर अपीऱीय अधिकरण, म ुंबई न्यायपीठ ‘बी’, म ुंबई । IN THE INCOME TAX APPELLATE TRIBUNAL “B”, BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN, JM आमकय अऩीर सं./ITA No.341/Mum/2014 (नििाारण वषा / Assessment Year :2010-2011) Aditya Birla Telecom Limited, 5th Vs. DCIT-10(1), Mumbai Floor, Windsor, Off. CST Road, Near Vidya Nagri, Kalina, Santacruz(E), Mumbai-400020 स्थामी रेखा सं./ जीआइआय सं./ PAN/GIR No. : AAFCA 5315 A (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. ननधाारयती की ओर से /Assessee by : Shri Jehangir Mistri, Sr. Advocate याजस्व की ओर से /Revenue by : Shri Suresh Kumar, Sp. Counsel सुनवाई…

Vidhya Pharma Chem P.Ltd, Mumbai vs. CIT (A) -8, Mumbai

In the result, the appeal of the assessee is partly allowed

ITA 7118/MUM/2014[2010-11]Status: DisposedITAT Mumbai23 Sept 2016AY 2010-11

Bench: Shri Jason P. Boaz, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 7118/Mum/2014 ("नधा"रण वष" / Assessment Year: 2010-11)

For Appellant: Ms. Anu Krishna Agarwal
Section 143(1)Section 28

…em Pvt. Ltd. vs. ACIT similar to the facts of the case decided by Hon’ble Apex Court wherein in the Hon’ble Supreme Court while relying upon the earlier judgment of Hon’ble Apex Court in the case of Commissioner of Income Tax V/s. Shoorji Vallabhdas and Co., 46 ITR 144 (SC) has 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 attract, 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,…

DCIT 2(3), Mumbai vs. Tata Aig Life Insurance Co. Ltd, Mumbai

In the result, all appeals of the revenue are dismissed and Cross objections are partly allowed

ITA 1035/MUM/2011[2002-03]Status: DisposedITAT Mumbai21 Sept 2016AY 2002-03

Bench: Shri R C Sharma & Shri Amit Shukla

Section 10(34)Section 143(3)Section 2Section 44

…s which are not income in nature cannot be taxed, whatever be the entries in the books of accounts. In this connection, the following decisions are relevant:  Godhra Electricity Co. Ltd. v C17'[1997] 225 17'J? 746 (SC);  CIT v Shoorji Vallabhdas & Co. /1962/46 ITR 144 (SC); and  CIT v Birla Gwalior P) Ltd. /1973189 ITR 266 (SC) In the present case also, the entries passed in the books of account lot- the transfer of funds from shareholders account to policyholders revenue account (to the extent of capital contributions) represent hypothetical income and not real income and hence, based on the above decisions,…