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.

Income Tax Officer, Ward-1, Jalna, Income Tax Office vs. The Beed District Central Co-Op. Bank Ltd., Beed

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

ITA 802/PUN/2024[2015-16]Status: DisposedITAT Pune21 Feb 2025AY 2015-16

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.800, 801 & 802/Pun/2024 निर्धारण वर्ष / Assessment Years : 2013-14, 2014-15 & 2015-16 Income Tax Officer, Ward - 1, Jalna अपीलार्थी / Appellant The Beed District Central Co-Op. Bank Ltd., Rajuri Ves, Beed – 431122, Vs. Maharashtra Pan : Aaaat5256C Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Shri Shubham N. Rathi Shri Amol Khairnar 02-12-2024 21-02-2025 प्रत्यर्थी / Respondent Per Astha Chandra, Jm : आदेश / Order These Three Appeals Filed By The Revenue Are Directed Against The Three Separate Orders All Dated 28.02.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)"] Pertaining To Assessment Years (“Ays”) 2013-14, 2014-15 & 2015-16 Respectively. Since The Issue(S) Involved Are Identical, These Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Department byFor Respondent: Date of hearing
Section 143(1)Section 143(2)Section 143(3)Section 263Section 43BSection 43D

…ed having regard to the relevant legal position and not on the basis of the presentation in the annual financial statements. At this stage, we may also refer to the judgement of the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co., (1962) 46 ITR 144 (SC) for the proposition that a mere book keeping entry cannot be assessed as income unless it can be shown that income has actually resulted. In the present case, the crediting of gross interest in the Profit & Loss Account, which includes interest on NPAs cannot be taken as a proof that such income has accrued to the assessee unless the statutor…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1184/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2021-22
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1155/AHD/2024[2020-21]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2020-21
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1154/AHD/2024[2019-20]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2019-20

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1153/AHD/2024[2018-19]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2018-19

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1152/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2017-18

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1151/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2016-17

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1150/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2015-16
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1149/AHD/2024[2014-15]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2014-15

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Deputy Commissioner of Income -Tax, Central Circle-1(1), Ahmedabad vs. Prakash Misrimal Sanghvi, Ahmedabad

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

ITA 1148/AHD/2024[2013-14]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2013-14
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC 1(1) Ahmedabad, Ahmedabad

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

ITA 1146/AHD/2024[2021-2022]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2021-2022
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC (1) Ahmedabad, Ahmedabad

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

ITA 1145/AHD/2024[2020-2021]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2020-2021

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC 1(1) Ahmedabad, Ahmedabad

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

ITA 1142/AHD/2024[2017-2018]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2017-2018

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC 1(1) Ahmedabad, Ahmedabad

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

ITA 1141/AHD/2024[2016-2017]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2016-2017
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC 1(1) Ahmedabad, Ahemedabad

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

ITA 1140/AHD/2024[2015-2016]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2015-2016

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC 1(1) Ahmedabad, Ahmedabad

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

ITA 1139/AHD/2024[2014-2015]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2014-2015

Bench: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 1138 To 1146/Ahd/2024 ("नधा"रण वष" / Assessment Years : 2013-14 To 2021-22) बनाम/ Prakash Misrimal Deputy Commissioner Of Sanghvi Income-Tax Vs. 17, Rajmugat Soc. Central Circle-1(1), Naranpura Char Rasta, Ahmedabad Naranpura, Ahmedabad 380013 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaeps7266A (Appellant) .. (Respondent)

For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…sis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon’ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

Prakash Misrimal Sanghvi, Ahmedabad vs. DCIT CC 1(1) Ahmedabad, Ahmedabad

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

ITA 1138/AHD/2024[2013-2014]Status: DisposedITAT Ahmedabad18 Feb 2025AY 2013-2014
For Appellant: Shri S. N. Soparkar, Sr. Advocate &For Respondent: Shri A. P. Singh, CIT-DR
Section 132Section 132(4)Section 143(3)Section 147Section 148

…asis of mercantile system of accounting. We, therefore, do not find any reason to interfere with the findings and the decision of the ld. CIT(A) on this issue. 87. It was held by the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC), that income tax cannot be levied on hypothetical income. To reproduce from the said order: "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 doe…

ITO 19(2)(4), Mumbai vs. Pallon Shapoorji Mistry, Mumbai

In the result, grounds raised by the Revenue are dismissed

ITA 1408/MUM/2024[2020-21]Status: DisposedITAT Mumbai24 Jan 2025AY 2020-21

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2020-21

For Appellant: Shri Porus Kaka, Sr. Advocate and Shri Divesh Chawla, AdvocateFor Respondent: Shri Jayant Jhaveri, CIT DR
Section 143(3)Section 144Section 145Section 3

…not be a tax, even though in book keeping an entry is made about a hypothetical income which does not materialize. This observation find force from various judicial precedents of Hon'ble Supreme Court including in the case of Shoorji Vallabhdas and Co. [1962] 46 ITR 144 (SC), Excel Industries Ltd., [2014] 358 ITR 295(SC). Change in method of accounting is not impermissible or barred, more particularly when assessee explains the situations which warrants such a change. Hon'ble High Court of Punjab and Haryana in the case 10 Pallon Shapoorji Mistry., AY 2020-21 of CIT vs. Punjab State Industrial Development Ltd. […

Vmd Enterprises P. Ltd., Chennai vs. ACIT, CC-1(3), Chennai

In the result, the appeal filed by the assessee is allowed

ITA 1123/CHNY/2024[2016-17]Status: DisposedITAT Chennai22 Jan 2025AY 2016-17

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita No.1123/Chny/2024 िनधा"रण वष" /Assessment Year: 2016-17

For Appellant: Shri Y. Sridhar, FCAFor Respondent: Shri R. Clement Ramesh Kumar, CIT
Section 153CSection 2(47)Section 28

…asset is a capital gain even if the taxpayer is engaged in a business related to the assets clause. As regard to the arguments of Ld. DR on the entry in the books of account, the Hon’ble Supreme Court in the case of CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144 (SC) has held that taxability of income does not depend on its entry in the books of account, but on its real nature and accrual. The Hon’ble Supreme court in the case of Keshav Mills Ltd., v. CIT [1953] 23 ITR 230 (SC) has clarified that a mere book entry is not decisive for income tax purpose. The nature of compensation :- 6 -: depends on the…

Suresh Kumar Yoginder Kumar, Timber Market 2692-1-2, Ambala Cantt vs. NFAC Delhi Jurisditional Officer ITO Ward 4 Ambala, Ambala

In the result, appeal of the Assessee is partly allowed

ITA 570/CHANDI/2024[2018-2019]Status: DisposedITAT Chandigarh17 Jan 2025AY 2018-2019
For Appellant: Shri Sudhir Sehgal, AdvocateFor Respondent: Shri Dharamvir, JCIT, Sr. DR
Section 142(1)Section 143(2)Section 250Section 253Section 40

…be errors in submitting month wise details. But that mistake should not be taken as the real income of the assessee. May I draw your goodself kind attention to the judgement of the Hon'ble Supreme Court in the case of CIT vs. Shoorji Vallabhdas & Co., (1962) 46 ITR 144 (SC) for the proposition that a mere book keeping entry cannot be assessed as income unless it can be shown that income has actually resulted. fi) That during the course of assessment proceedings vide letter dated 16.03.2021 (Copy enclosed for ready reference at page no. 40 of the Paper Book) assessee has explained as under :- "Purchases:- As per…