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)

Ashiana Buildprop Private Limited, Udaipur vs. DCIT, Central Circle-1, Udaipur

ITA 706/JODH/2024[2013-14]Status: DisposedITAT Jodhpur26 May 2025AY 2013-14

Section 132Section 145(3)Section 153ASection 234ASection 250

…e addition of one type of notional income or profit and it is legally settled position that no tax can be charged on the notional interest or income. The Hon'ble Supreme Court has long back propounded this principle in the case of CIT v. ShoorjiVallabhdas& Co.46 ITR 144 (SC), which has been repeated time and again and has been followed by Apex Court in the case of Godhara Electric Co.225 ITR 746 (SC). It has also been held that making or non making entries does not make any sense and what is to be seen is that in substance some income has resulted or not. The income under the IT Act can be taxed only on two occas…

Raju Suryanarayana Alluri, Usa vs. ITO (Int Taxn)-1, Hyderabad

In the result, the appeal of the assessee is allowed

ITA 505/HYD/2024[2016-17]Status: DisposedITAT Hyderabad19 May 2025AY 2016-17

Bench: Shri Vijay Pal Rao & Shri Madhusudan Sawdia

For Appellant: Shri K.C. Devdas, C.AFor Respondent: Shri B. Balakrishna, CIT-DR

Section 139Section 147Section 148Section 2(47)(v)Section 45

…held that on these facts there would be neither accrual nor receipt of income to warrant bringing to tax to the constructed area of 18,000 sq.ft which has not been received by the respondent-assessee. As observed by the Apex Court in CIT vs Shoorji Vallabhdas 46 ITR 144 : “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, an entry is made about…

Rare Enterprises, Mumbai vs. DCIT Central Circle 7(1), Mumbai

In the result appeal of the Revenue as well as appeal filed by the assessee is dismissed

ITA 771/MUM/2024[2018-19]Status: DisposedITAT Mumbai29 Apr 2025AY 2018-19

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)

Section 143(3)

…the assessee has to be found out and what has accrued must be dovetailing of these factors together" 11. This concept of ‘real income’ was laid down in a very classical judgment of the Hon’ble Supreme Court in the case of Shoorji Vallabhdas & Co., reported in 46 ITR 144 wherein the Hon’ble Court held as under:- “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…

The Good Shepherd Education Society, Bengaluru vs. ITO, Exemptions Ward-2, Bengaluru

In the result, appeal filed by the assessee is allowed for statistical purpose

ITA 128/BANG/2025[2018-19]Status: DisposedITAT Bangalore25 Apr 2025AY 2018-19

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubeyassessment Year : 2018-19

For Appellant: Shri. Gokul, AdvocateFor Respondent: Shri. Subramanian S, JCIT(DR)(ITAT), Bangalore

Section 249

…further submitted that the CPC while processing the return has not considered the real income. It is in contravention to the scheme of Income Tax Act. In support of his arguments, he relied on the following judgments: a. CIT v. ShoorjiVallabhdas& Co. [1962] 46 ITR 144 (SC) b. Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC) c. Poona Electric Supply Co. Ltd v. CIT [1965] 56 ITR 521 (SC) d. CIT v. Chamanlal Mangaldas& Co. [1960] 39 ITR 8 (SC) e. CIT v Harivallabhadas Kalidas & Co. [1960] 39 ITR 1 (SC) f. CIT v Virtual Soft Systems Ltd. [2018] 404 ITR 409 (SC) Page 3 of 4 g. Miss Dhun Dadabhoy Kapadia v C…

ITO, Ward-1(1), Hyderabad vs. Arka Properties Private Limited, Hyderabad

In the result, appeal of the Revenue is dismissed

ITA 58/HYD/2024[2015-16]Status: DisposedITAT Hyderabad17 Apr 2025AY 2015-16

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita No.58/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2015-16) Income Tax Officer Vs. Arka Properties (P) Ltd Ward 1 (1) Hyderabad Hyderabad Pan:Aafca7411H (Appellant) (Respondent) राज" व "ारा/Revenue By:: Smt. M. Narmada, Cit(Dr) िनधा""रती "ारा/Assessee By: Advocate H Srinivasulu, सुनवाई की तारीख/Date Of Hearing: 27/03/2025 घोषणा की तारीख/Pronouncement: 17/04/2025 आदेश/Order Per Vijay Pal Raothis Appeal By The Revenue Is Directed Against The Order Dated, 23/11/2023 Of The Learned Cit (A)-Nfac Delhi, For The A.Y. 2015-16. 2. There Is A Delay Of 1 Day By The Revenue In Filing The Appeal Before The Tribunal & The Revenue Has Filed An Affidavit Explaining The Cause Of Delay. We Have Heard The Learned Dr As Well As The Learned Ar On The Condonation Of Delay. The Learned Ar Has Not Objected For Condonation Of Delay Of One Day In Filing

For Appellant: Advocate H SrinivasuluFor Respondent: : Smt. M. Narmada, CIT(DR)

Section 148Section 45

…ITA No 58 of 2024 ARKA Properties P Ltd आयकर अपील"य अ"धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ DB-B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.58/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2015-16) Income Tax Officer Vs. ARKA Properties (P) Ltd Ward 1 (1) Hyderabad Hyderabad PAN:AAFCA7411H (Appellant) (Respondent) राज" व "ारा/Revenue by:: Smt. M. Narmada, CIT(DR) िनधा""रती "ारा/Assessee by: Advocate H Srinivasulu, सुनवाई की तारीख/Date of hearing: 27/03/2025 घोषणा की तारीख/Pronouncement: 17/04/2025 आदेश/ORDE…

Jaipur Buildfarms Private Limited, Jaipur vs. Deputy Commissioner of Income Tax, Central Circle-1, Jaipur

In the result, relevant grounds raised by the assessee are

ITA 1337/JPR/2024[2016-17]Status: DisposedITAT Jaipur09 Apr 2025AY 2016-17

Bench: Dr. S. Seethalakshmi & Shri Gagan Goyal

For Appellant: Mr. Surendra Shah, CA, Ld. ARFor Respondent: Mr. Arvind Kumar,CIT- Ld. DR

Section 139Section 139(4)Section 147Section 148Section 250

…place for taxation of notional or unreal income. The assessee further relied on the decision of the Hon'ble Punjab & Haryana High Court in the case of Hira Lal Ram Dayal 122 ITR 461 and Hon'ble Apex Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144. We have gone through the authorities of respective Hon'ble Courts w.r.t. sustainability of transactions based on forged documents and taxation of notional income respectively and found the same to be applicable in the case of the assessee. In the result, relevant grounds raised by the assessee are allowed and the addition made by the AO amounting…

ACIT, Circle-12(2), New Delhi vs. Innovations India Advertising and Event Pvt. Ltd., New Delhi

In the result, appeal of Revenue in ITA No

ITA 534/DEL/2020[2015-16]Status: DisposedITAT Delhi09 Apr 2025AY 2015-16

Bench: Shri Yogesh Kumar Us & Shri Naveen Chandra

For Appellant: Shri Alok Bhachawat, AdvFor Respondent: Shri Om Prakash, Sr. DR

Section 37(1)

…ITA NO. 534/DEL/2025 Innovations India [A.Y 2015-16] IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 534/DEL/2020 [A.Y. 2015-16] The A.C.I.T Vs. M/s Innovations India Advertising Circle Intl. Taxation and Events Pvt Ltd 12)(2), New Delhi Flat No. 224, Sector – A Pocket – C, Vasant Kunj, New Delhi PAN: AACCI 13425 L (Applicant) (Respondent) Assessee By : Shri Alok Bhachawat, Adv Shri Ishan Jain, Adv Shri Rajnish Dang, CA Department By : Shri Om Prakash, Sr. DR Date of Hearing : 01.04.2025 Date…

Growmore Leasing & Investment Ltd, Mumbai vs. DCIT, CC-4(1) (Erstwhile DCIT-31, Mumbai

In the result, both the appeals of the assessee are allowed

ITA 660/MUM/2023[1993-94]Status: DisposedITAT Mumbai17 Mar 2025AY 1993-94

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Shri Dharmesh Shah, A/RFor Respondent: Shri Dr. P. Daniel, Spl. Counsel

Section 144

…g Co. Ltd. reported in [1970] 78 ITR 12 (SC). Income of the assessee has to be received by the assessee as income-tax is levied on income. For this purpose, we may refer the judgment of the Supreme Court in CIT v. Shoorji Vallabhdas and Co. reported in [1962] 46 ITR 144 which was reiterated in Godhra Electricity Co. Ltd. v. CIT reported in [1997] 225 ITR 746 (SC). The Supreme Court summed up the law as under (headnote) : "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; bu…

Growmore Leasing and Investments Ltd, Mumbai vs. DCIT, CC-4(1) (Erstwhile DCIT-31, Mumbai

In the result, both the appeals of the assessee are allowed

ITA 452/MUM/2023[1993-94]Status: DisposedITAT Mumbai17 Mar 2025AY 1993-94

Bench: Shri Saktijit Dey, Hon’Ble & Shri Narendra Kumar Billaiya, Hon’Ble

For Appellant: Shri Dharmesh Shah, A/RFor Respondent: Shri Dr. P. Daniel, Spl. Counsel

Section 144

…g Co. Ltd. reported in [1970] 78 ITR 12 (SC). Income of the assessee has to be received by the assessee as income-tax is levied on income. For this purpose, we may refer the judgment of the Supreme Court in CIT v. Shoorji Vallabhdas and Co. reported in [1962] 46 ITR 144 which was reiterated in Godhra Electricity Co. Ltd. v. CIT reported in [1997] 225 ITR 746 (SC). The Supreme Court summed up the law as under (headnote) : "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; bu…

M/S. Garden View Foods Pvt. Ltd., Delhi vs. Pr. CIT- 3, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 3225/DEL/2017[2011-12]Status: DisposedITAT Delhi10 Mar 2025AY 2011-12

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year : 2018-19] Ptc India Ltd. Vs Dcit 2Nd Floor, Nbcc Tower, Circle-19(1), Delhi Bhikaji Cama Place, 15, R.K.Puram (Main), New Delhi-110066. Pan-Aabcp7947F Appellant Respondent [Assessment Year : 2018-19] Dcit Vs Ptc India Ltd. Circle-19(1), 2Nd Floor, Nbcc Tower, Delhi Bhikaji Cama Place, 15, R.K.Puram (Main), New Delhi-110066. Pan-Aabcp7947F Appellant Respondent Appellant By Shri Salil Kapoor, Adv. & Ms. Soumya Singh, Adv Respondent By Shri D S Sidhu, Cit Dr Date Of Hearing 25.08.2025 Date Of Pronouncement 19.11.2025

Section 143(3)Section 14ASection 250

…ITA No.961/Del/2023 & 3225/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “C” BENCH: NEW DELHI BEFORE SHRI SUDHIR KUMAR, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [Assessment Year : 2018-19] PTC India Ltd. vs DCIT 2nd Floor, NBCC Tower, Circle-19(1), Delhi Bhikaji Cama Place, 15, R.K.Puram (Main), New Delhi-110066. PAN-AABCP7947F APPELLANT RESPONDENT [Assessment Year : 2018-19] DCIT vs PTC India Ltd. Circle-19(1), 2nd Floor, NBCC Tower, Delhi Bhikaji Cama Place, 15, R.K.Puram (Main), New Delhi-110066. PAN-AABCP7947F APPELLANT RESPONDENT Appellant by Shri Salil Kapoor, Adv. & Ms. Soumya Singh,…