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 367,154 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.

Siddharth Developers, Mumbai vs. Asstt Commissioner of Income Tax CC-5(3), Mumbai

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

ITA 707/MUM/2022[2017-18]Status: DisposedITAT Mumbai03 Jan 2023AY 2017-18

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Sandeep Singh Karhail, Hon'Blesiddharth Developers V. Acit – Central Circle – 5(3) 205 Commerce House Room No. 1906, 19Th Floor 140 N.M. Road, Fort Air India Building Nariman Point, Mumbai – 400 021 Mumbai - 400023 Pan: Abffs4068J (Appellant) (Respondent) Assessee Represented By : Shri Nishit Gandhi Department Represented By : Shri Salil Mishra

Section 142(1)Section 143(2)

…he opening WIP. This is not just grossly unfair but also against the settled principle that only Real Income can be brought to tax and not any hypothetical income [Ref. Godhra Electricity Cows CIT-(1997) 225 ITR 746 (SC), CIT us Shoorji Vallabhdas & Ca-(1962) 46 ITR 144 (SC), Morvi Industries vs CIT-(1971) 82 ITR 835 (SC), et. al.] In the present case the AO is seeking to tax the hypothetical income which has never been earned. In fact even after adding the amount of Rs.8,93,57,550/- being 17 Siddharth Developers consideration as per stamp duty value in terms of section 43CA of the Act [Ref pg.38 of PH) there is…

ACIT, New Delhi vs. Shri Harish Bhandari, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 3049/DEL/2016[2007-08]Status: DisposedITAT Delhi03 Jan 2023AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. P. C. Yadav, AdvFor Respondent: Sh. Shashi Bhushan Shukla, CIT DR
Section 132Section 17(2)(vi)Section 28

…the assessment is done on the basis of Sec.28(iv) and not u/s 17(2)(vi), and therefore only the 6 Harish Bhandari applicability of Sec.28(iv) to the facts of this case has to be determined. In Commissioner of Income Tax vs. Shoorji Vallabhdas and Co., [1962] 46 ITR 144 (SC) it was held "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 ent…

Deputy Commissioner of Income Tax, Central Circle-2(4), Bangalore vs. Century Real Estate Holdings Private Limited, Bangalore

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

ITA 740/BANG/2022[2013-14]Status: DisposedITAT Bangalore30 Nov 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2013-14

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar, D.R

…revenue received and the expenses incurred., If the revenue is received as an advance for which the expenses are to be incurred in the future years, this advance cannot be treated as income of the assessee. 6.13 In the case of CIT v. Shoorji Vallabhdas & Co. 46 ITR 144 (SC), the Hon’ble Supreme Court 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 attracted, viz., the accrual of the income or its receipt; hut the substance of the matter is the income. If income does not result at ITA No.580 & 740/Bang/202…

Century Real Estate Holdings Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(2), Bangalore

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

ITA 580/BANG/2022[2013-14]Status: DisposedITAT Bangalore30 Nov 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2013-14

For Appellant: Smt. Sheetal Borkar, A.RFor Respondent: Shri Gudimella V.P. Pavan Kumar, D.R

…revenue received and the expenses incurred., If the revenue is received as an advance for which the expenses are to be incurred in the future years, this advance cannot be treated as income of the assessee. 6.13 In the case of CIT v. Shoorji Vallabhdas & Co. 46 ITR 144 (SC), the Hon’ble Supreme Court 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 attracted, viz., the accrual of the income or its receipt; hut the substance of the matter is the income. If income does not result at ITA No.580 & 740/Bang/202…

ACIT 28(2), Mumbai vs. M/S. Neel Siddhi Developers, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 1693/MUM/2020[2012-13]Status: DisposedITAT Mumbai22 Nov 2022AY 2012-13

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadaleacit 28(2) Vs. M/S Neel Siddhi Room No. 307, 3Rd Floor Developers, Tower No. 6, Vashi Rly 2Nd Floor, Emerald, Stn Complex, Vashi Plot No. 195/B, Navi Mumbai – 400703 Sec-12, Vashi, Navi Mumbai – 400 703. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagfn2744N Appellant .. Respondent Appellant By : Shri Chetan M. Kacha.Dr Respondent By : Shri Subodh Ratnaparkhi.Ar Date Of Hearing 14.11.2022 Date Of Pronouncement 24.11.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Passed By The Commissioner Of Income Tax (Appeals)- 26, Mumbai Passed U/S 143(3) & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Shri Chetan M. Kacha.DRFor Respondent: Shri Subodh Ratnaparkhi.AR
Section 143(2)Section 143(3)

…was an advocate. Has receiving retainer ship fees which was shown as advance in his books of accounts. The Hon'ble ITAT after considering the matter placed reliance on the decision the Hon'ble Supreme Court in the case of CIT Vs. Shoorji Vallabh Das & Co. (1 46 ITR 144 which deals with the mercantile rt. The Hon'ble Supreme Court pointed out that The Act takes into account two points of time at d, namely the accrual of the income or its receipt. is the income. If income does not result at all, ah in book- keeping, an entry is made about a not materialize. Where income has, in fact, been n up, it remains the inco…

Bbc World Distribution Ltd., Gurgaon vs. ADIT, New Delhi

In the result, all the appeals are allowed, as indicated above

ITA 610/DEL/2011[2007-08]Status: DisposedITAT Delhi21 Nov 2022AY 2007-08

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2006-07 & Assessment Year: 2007-08 & Assessment Year: 2008-09

…g e ITA Nos.1907/Del/2011; 610/Del/2011 & 5415/Del/2011 assessee is unjustified. In support of his contention, learned counsel relied upon the following decisions: • E.D. Sassoon & Co. Vs. CIT [1954] 26 ITR 27 (SC) • CIT Vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC) • Godhra Electricity Company Vs. CIT [1997] 225 ITR 746 (SC) • CIT Vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC) • Shivnandan Buildcon Pvt. Ltd. Vs. CIT [2015] 60 taxmann.com 347 8. Insofar as the allegation of the departmental authorities that the assessee has a PE in India in the form of BWIPL in assessment years 2007-08 and 2008-09,…

Bbc World Distribution Ltd., Gurgaon vs. ADIT, New Delhi

In the result, all the appeals are allowed, as indicated above

ITA 5415/DEL/2011[2008-09]Status: DisposedITAT Delhi21 Nov 2022AY 2008-09

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2006-07 & Assessment Year: 2007-08 & Assessment Year: 2008-09

…g e ITA Nos.1907/Del/2011; 610/Del/2011 & 5415/Del/2011 assessee is unjustified. In support of his contention, learned counsel relied upon the following decisions: • E.D. Sassoon & Co. Vs. CIT [1954] 26 ITR 27 (SC) • CIT Vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC) • Godhra Electricity Company Vs. CIT [1997] 225 ITR 746 (SC) • CIT Vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC) • Shivnandan Buildcon Pvt. Ltd. Vs. CIT [2015] 60 taxmann.com 347 8. Insofar as the allegation of the departmental authorities that the assessee has a PE in India in the form of BWIPL in assessment years 2007-08 and 2008-09,…

Bbc World Distribution Ltd., Gurgaon vs. ADIT, New Delhi

In the result, all the appeals are allowed, as indicated above

ITA 1907/DEL/2011[2006-07]Status: DisposedITAT Delhi21 Nov 2022AY 2006-07

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Deyassessment Year: 2006-07 & Assessment Year: 2007-08 & Assessment Year: 2008-09

…g e ITA Nos.1907/Del/2011; 610/Del/2011 & 5415/Del/2011 assessee is unjustified. In support of his contention, learned counsel relied upon the following decisions: • E.D. Sassoon & Co. Vs. CIT [1954] 26 ITR 27 (SC) • CIT Vs. Shoorji Vallabhdas & Co. [1962] 46 ITR 144 (SC) • Godhra Electricity Company Vs. CIT [1997] 225 ITR 746 (SC) • CIT Vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC) • Shivnandan Buildcon Pvt. Ltd. Vs. CIT [2015] 60 taxmann.com 347 8. Insofar as the allegation of the departmental authorities that the assessee has a PE in India in the form of BWIPL in assessment years 2007-08 and 2008-09,…

National Fertilizers Ltd., New Delhi vs. Addl. CIT, Range- 18, New Delhi

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 1148/DEL/2018[2011-12]Status: DisposedITAT Delhi02 Nov 2022AY 2011-12

Bench: Shri Anil Chaturvedia N D Shri Challa Nagendra Prasad

For Appellant: Shri Aman Garg, C. AFor Respondent: [CIT] – D. R
Section 43B

…its accounts on a mercantile basis applying the theory of ‘real income ’ - accrual concept applies only in respect of real income as laid down by the apex court in Godhrci Electricity Co. Ltd Vs CIT (1997) AIR 2350 (SC)following Shoorji Vallabhdas& Co. (1962) 46 ITR 144 (SC). Accordingly, in due deference to the decisions of the Hon ’ble Supreme Court as well as those of the jurisdictional High Court (Delhi HC) and ITAT Delhi in the appellant’s own case for earlier years, the addition (Rs. 2,42,880/-) in this regard made in the impugned order is deleted. The appeal on this ground is allowed. ” 15.3 The material f…

ACIT, Circle- 17(2), New Delhi vs. National Fertilizers Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 1041/DEL/2018[2011-12]Status: DisposedITAT Delhi02 Nov 2022AY 2011-12

Bench: Shri Anil Chaturvedia N D Shri Challa Nagendra Prasad

For Appellant: Shri Aman Garg, C. AFor Respondent: [CIT] – D. R
Section 43B

…its accounts on a mercantile basis applying the theory of ‘real income ’ - accrual concept applies only in respect of real income as laid down by the apex court in Godhrci Electricity Co. Ltd Vs CIT (1997) AIR 2350 (SC)following Shoorji Vallabhdas& Co. (1962) 46 ITR 144 (SC). Accordingly, in due deference to the decisions of the Hon ’ble Supreme Court as well as those of the jurisdictional High Court (Delhi HC) and ITAT Delhi in the appellant’s own case for earlier years, the addition (Rs. 2,42,880/-) in this regard made in the impugned order is deleted. The appeal on this ground is allowed. ” 15.3 The material f…

The Deputy Commr. of Income Tax, Circle-2 (1), Rajkot-Gujarat vs. Shri Girish R. Tanti, Rajkot-Gujarat

In the result, appeal of the Department is dismissed

ITA 113/RJT/2018[2011-12]Status: DisposedITAT Rajkot31 Oct 2022AY 2011-12
For Appellant: Shri Mehul Ranpura, A.RFor Respondent: Shri Shramdeep Sinha, Sr. D.R
Section 139Section 143(3)Section 263

…the contentions of the assessee mainly on the grounds that the assessee had shown interest income on the same deposit in immediately preceding assessment year and that the facts of the case of assessee were different from the cases of Shoorji Vallabhdas & Co. 46 ITR 144 (SC) and of Arihant Avenue & Credit Ltd., 36 Taxmann.coml4 relied upon by the assessee. One of the pleas of the assessee was that the assessee had sufficient own capital and non interest bearing funds and deposits and therefore it was not case of divergence of funds as non interest bearing advance. This plea of the assessee was rebutted by the A.…

Bsr Infratech India Limited, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle-2(1), Bangalore

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

ITA 697/BANG/2022[2017-18]Status: DisposedITAT Bangalore27 Oct 2022AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2017-18

For Appellant: Shri Madhusudhan, A.RFor Respondent: Shri Praveen Karanth, D.R
Section 199Section 234ASection 270ASection 43Section 43C

…see in his books of accounts does not affect the true nature of the receipt. For this purpose, we place reliance on the judgement of BSR Infratech India Ltd., Bangalore Page 19 of 38 Hon’ble Supreme Court in the case of CIT Vs. Shoorji Vallabhadas & Company (46 ITR 144). 6.2 While determining the income of the assessee in particular assessment year, the legal consequences of the transaction must be kept in mind and should be taken as guiding factor for arriving at a decision from the point of view of the incomes as well. This is because of fact that what is sought to be taxed under Income Tax Act is that commer…

JCIT (OSD) Circle-8(3)(1), Mumbai vs. M/S. Tridoss Laboratories Private Ltd., Mumbai

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

ITA 1489/MUM/2018[2002-03]Status: DisposedITAT Mumbai20 Oct 2022AY 2002-03
Section 143(3)Section 36(1)(iii)Section 37

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E‘ BENCH MUMBAI BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER JCIT(OSD), Circle-8(3)(1) Vs. M/s. Tridoss Laboratories Mumbai. Pvt Ltd., Dy. Commissioner of 167, Ready Money Terrace, Income-Tax, Circle-8(3)(1), Dr. Annie Besant Road, Mumbai. Worli, Mumbai-400018 PAN/GIR No.AAACT5014H (Appellant) .. (Respondent) M/s. Tridoss Laboratories Vs. JCIT(OSD), Circle-8(3)(1) Pvt Ltd., Mumbai. 167, Ready Money Dy. Commissioner of Income- Terrace, Dr. Annie Besant Tax, Circle-8(3)(1), Mumbai. Road, Worli, Mumbai- 400018 PAN/GIR No.AAACT5014H (App…

M/S. Tridoss Laboratories Private Ltd., Mumbai vs. ACIT Cent. Cir. - 14, Mumbai

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

ITA 1462/MUM/2018[2002-03]Status: DisposedITAT Mumbai20 Oct 2022AY 2002-03
Section 143(3)Section 36(1)(iii)Section 37

…IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E‘ BENCH MUMBAI BEFORE: SHRI M.BALAGANESH, ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER JCIT(OSD), Circle-8(3)(1) Vs. M/s. Tridoss Laboratories Mumbai. Pvt Ltd., Dy. Commissioner of 167, Ready Money Terrace, Income-Tax, Circle-8(3)(1), Dr. Annie Besant Road, Mumbai. Worli, Mumbai-400018 PAN/GIR No.AAACT5014H (Appellant) .. (Respondent) M/s. Tridoss Laboratories Vs. JCIT(OSD), Circle-8(3)(1) Pvt Ltd., Mumbai. 167, Ready Money Dy. Commissioner of Income- Terrace, Dr. Annie Besant Tax, Circle-8(3)(1), Mumbai. Road, Worli, Mumbai- 400018 PAN/GIR No.AAACT5014H (App…

Springer Nature Customer Services Centre Gmbh, New Delhi vs. JCIT, Internationalo Taxation, Circle-3(1)(2), New Delhi

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

ITA 2534/DEL/2019[2013-14]Status: DisposedITAT Delhi14 Oct 2022AY 2013-14

Bench: Shri Shamim Yahya & Shri Kul Bharat[Assessment Year : 2013-14] Springer Nature Customer Services Vs Jcit Centre Gmbh (Earlier Known As (International Taxation), Springer Customer Centre Gmbh), Circle-3(1)(2), 7Th Floor, Vijaya Building, New Delhi. 17-Barakhamba Road, New Delhi-110001. Pan-Aascs1092B Appellant Respondent Appellant By S/Shri Himanshu Sinha, Bhuwan Dhooper & Vibhu Gupta, Advocates Respondent By Ms. Rashmita Jha, Cit Dr Date Of Hearing 20.09.2022 Date Of Pronouncement 14.10.2022

Section 143(3)Section 234ASection 234BSection 271Section 9(1)(vi)

…llowing judicial precedents: • E. D. Sassoon & Co. vs CIT: [1954] 26 ITR 27 (SC) • CIT v. Ashokbhai Chimanbhai: [1965] 56 ITR 42 (SC) • CIT v. Hindustan Housing and Land Development Trust Ltd.: [1986] 161 ITR 524 (SC) • CIT v. Shoorji Vallabhdas & Co.: [1962] 46 ITR 144 (SC) • Godhra Electricity Company V CIT: [1997] 225 ITR 746 (SC) • CIT vs. Excel Industries Ltd.: (2013) 358 ITR 295 (SC) 12 | P a g e Ground No. 4: Interest charged under section 234A and 234B of the Act 4.1 This ground is consequential in nature. Ground No. 5: Penalty proceedings initiated under section 271(l)(c) of the Act 5.1 There shall be n…

M/S. Te Connectivity Services India Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle-7(1)(1), Bangalore

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

ITA 191/BANG/2022[2017-18]Status: DisposedITAT Bangalore16 Sept 2022AY 2017-18

Bench: Shri N. V. Vasudevan & Ms. Padmavathy Sit(Tp)A No.191/Bang/2022 Assessment Year : 2017-18 M/S. Te Connectivity Services India Private Vs. National Faceless Assessment Centre, Limited, Delhi. 59/2, 1St Floor, Gurudas Heritage, Block-B, 100 Feet Ring Road, Banashankari 2Nd Stage, Bengaluru – 560 070. Pan: Aafct 3474 R Appellant Respondent Assessee By : Shri. Sriram Seshadri, Ca Revenue By : Dr. Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 14.09.2022 Date Of Pronouncement : 16.09.2022 O R D E R Per N. V. Vasudevan:

For Appellant: Shri. Sriram Seshadri, CAFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 144BSection 92Section 92C

…tive of the question whether the assessee has earned any profit or suffered any loss. For the proposition only real income is taxable, the learned counsel for the assessee relied on the decision of Hon’ble Supreme Court in the case of Shoorji Vallabhdas & Co. 46 ITR 144 (SC), wherein the Hon’ble Court held that if income does not result at all, there cannot be a tax, even though in book- keeping, an entry is made about a hypothetical income, which does not materialise. It was submitted that the assessee is entitled to deduction of entire amount of interest expense being INR 6.11 Crores. The learned DR reiterated…

The Commissioner of Income-Tax vs. M/S. Canara Bank

ITA/268/2018HC Karnataka13 Sept 2022

Bench: P.S.DINESH KUMAR,UMESH M ADIGA

Section 260Section 45(2)

…following the authority in CIT Vs. Shoorji Vallabhdas and Co.6 has held that there cannot be a tax, even though for the purposes of book-keeping, an entry is made 5 [1990] 51 Taxman 283 (Madras) 6 [1962] 46 ITR 144 (SC) 10 about hypothetical income. It is possible that at the end of the contract, the Bank may infact gain or lose money based on the foreign exchange value as on the date of the conclusion of the transaction. 10. We are in respectful agreement with the view taken by the Madras Hig…

DCIT - 10(3)(2), Mumbai vs. Phonographic Performance Ltd., Mumbai

In the result, both, the appeal of the revenue and the cross objection filed by the assessee are dismissed

ITA 2976/MUM/2018[2011-12]Status: DisposedITAT Mumbai12 Sept 2022AY 2011-12

Bench: Shri Amarjit Singh () & Smt. Kavitha Rajagopal ()

Section 143(3)Section 148Section 250Section 33

…come. The assessee is duty bound to distribute any income received by it to the concerned member. The assessee is entitled only to the expenses incurred in performing such activities. The Ld.CIT(A) has relied on the following decisions:- 1. Shoorji Vailabhdas 46 ITR 144 (SC), 2. Morvi industries 82 ITR 835 10 CO 126/Mum/2019 3. Godhra Electricity co 225 ITR 746, 12. We have considered the judicial precedents in the abovesaid decisions which reiterated the principle that it is essential to consider whether any income is real or hypothetical and that whether there is a corresponding liability of the other party…

Sant Damaji Sahakari Sakhar Karkhana Ltd, Solapur vs. Assistant Commissioner of Income-Tax, Circle - 1, Solapur

The appeal is dismissed

ITA 205/PUN/2018[2013-14]Status: DisposedITAT Pune26 Aug 2022AY 2013-14

Bench: Shri S.S. Godara & G.D. Padmahshalim/S. Sant Damaji Sahakari Acit, Circle -1 Sakhar Karkhana Ltd. Aaykar Bhavan A/P. Mangalwedha Vs. Hotgi Road Tal. Mangalwedha Solapur 413003 Dist. Soalpur 413305 Pan –Aaats5265K Appellant Respondent Appellant By: None Respondent By: Shri Sardar Singh Meena Date Of Hearing: 17.08.2022 Date Of Pronouncement: 26.08.2022 O R D E R Per S.S. Godara, Jm This Assessee’S Appeal For Ay 2013-14 Arises Against The Cit(A) 7, Pune’S Order Dated 25.10.2017 Passed In Case No. Pn/Cit (A)-7/Cir-1/10570/2016- 17, Involving Proceedings Under Section 143(3) Of The Income Tax Act, 1961 (In Short The Act).

For Appellant: NoneFor Respondent: Shri Sardar Singh Meena
Section 143(3)Section 40Section 40A(3)

…s shows that the income has accrued to the appellant during the year under consideration and income cannot be shifted to A.Y. 2016-17 in the name of finalization of entries. The Supreme Court in case of Commissioner of tax v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144, 148 (SC), observed: "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…

DCIT, Chennai vs. M/S. United India Insurance Co. Ltd., Chennai

In the result, all the appeals filed by the Revenue for the assessment years 2003-04, 2004-05, 2005-06, 2006-07, 2008-09,

ITA 1673/CHNY/2011[2003-04]Status: DisposedITAT Chennai26 Aug 2022AY 2003-04

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.:1673, 1688, 1689, 1691/Chny/2011 िनधा"रण वष" / Assessment Years: 2003-04, 2004-05, 2005-06, 2006-07 Assistant Commissioner Of Income M/S. United India Insurance Co. Tax, V. Ltd., Large Tax Payer Unit, 24, Whites Road, Chennai – Chennai. 600 014. [Pan: Aaacu-5552-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं./Ita Nos: 1693/Chny/2011, 36/Chny/2014 & 696/Chny/2014 िनधा"रण वष" / Assessment Years: 2008-09, 2009-10 & 2010-11 Deputy Commissioner Of Income M/S. United India Insurance Co. Tax, V. Ltd., Large Tax Payer Unit, 24, Whites Road, Chennai – Chennai. 600 014. [Pan: Aaacu-5552-C] (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee Represented By : Shri. S. Sundararaman, Ca Department Represented By : Shri. M. Swaminathan, Sr.Standing Counsel & Ms. V. Pushpa, Jr. Standing Counsel सुनवाई क" तार"ख/Date Of Hearing : 10.08.2022 घोषणा क" तार"ख/Date Of Pronouncement : 26.08.2022 आदेश /O R D E R

Section 195Section 195(1)Section 40Section 5(2)(b)

…xable territories would have to be decided having regard to the general principles as to where the income, profits or gains could be said to arise or accrue; 63. The Supreme Court of India in the case of Shoorji Vallabhdas & Co. v. Commissioner of Income-Tax (39 ITR 775) while dealing with the question as to whether a part of the managing agency commission earned by the assessee accrue or arise in the Cochin State inasmuch as the managing agency commission is computed on the basis of the freight earned by the managed company in the Cochin State have held that (a) the test is to find out where the business is actu…