CIT v. Shri Goverdhan Ltd.

69 ITR 675Supreme Court of India1968#3204 most cited

What is CIT v. Shri Goverdhan Ltd. authority for?

Income accrues to an assessee when they acquire a right to receive it, even if it has not yet been actually received or quantified. A debt is created once liability is established, and its future quantification does not make it contingent.

37

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2010 to 2025.

Also referred to as

CIT v. Shri Goverdhan Ltd. · 69 ITR 675 · SC · income accrual · right to receive income · debt creation · contingent liability · quantification of income

Sections most often in play

Section 80IASection 40(a)(ii)Section 43BSection 143(3)Section 2(42A)Section 244ASection 28(iv)Section 37

Issues it is cited on

section 145(1)section 10(1)section 211section 145(2)right to receivesection 42project completion methodsection 43cjdatrcpercentage completion methodsection 21

Judgments citing CIT v. Shri Goverdhan Ltd.

ACIT 6(3), Mumbai vs. Grasim Industries Ltd, Mumbai

ITA 4385/MUM/2009[2006-07]Status: HeardITAT Mumbai25 Feb 2025AY 2006-07
Section 143(2)Section 143(3)Section 24Section 43B

…sessee and assessee acquires a right to receive the interest. Sub-section (3) of section 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT v. Shri Goverdhan Ltd. [1968] 69 ITR 675, has observed at page 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under section 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not depende…

Grasim Industries Ltd ( Corporate Finance Division), Mumbai vs. Addl CIT RG 6(3), Mumbai

ITA 3762/MUM/2009[2006-07]Status: DisposedITAT Mumbai25 Feb 2025AY 2006-07

Bench: the CIT(A). The CIT(A) partly allowed the appeal preferred by the Assessee vide order, dated 18/05/2009. 4. Not being satisfied with the relief granted by the Id. CIT(A), the Assessee has preferred appeal before this Tribunal. The Revenue has also filed cross-appeal challenging the relief granted by the Id. CIT(A).

For Appellant: Shri J. D. Mistry Sr. AdvocateFor Respondent: Shri Kishor Dhule
Section 143(2)Section 143(3)Section 24Section 43B

…sessee and assessee acquires a right to receive the interest. Sub-section (3) of section 244A only affects its quantification under certain circumstances and not the right of interest. The Hon’ble Supreme Court in the case of CIT v. Shri Goverdhan Ltd. [1968] 69 ITR 675, has observed at page 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under section 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not depende…

Assistant Commissioner of Income Tax, Chennai vs. Suryanarayana Iyer, Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 1491/CHNY/2024[2013-14]Status: DisposedITAT Chennai09 Oct 2024AY 2013-14

Bench: Shri Aby T. Varkey & Shri Amitabh Shuklaआयकर अपील सं./Ita No.1491/Chny/2024 िनधा"रण वष"/Assessment Year: 2013-14 V. The Acit, Ncc-19(1), Mr. Suryanarayana Iyer, Chennai. Old No.3, New No.5, Third Street, Nehru Colony, Nanganallur, Chennai-600 061. [Pan: Aztps 0939 A] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Ms. G. Vardini KarthikFor Respondent: Dr. Samuel Pitta, JCIT
Section 194J

…as taxed by the AO, the income never accrued to the appellant as LN never accepted the data submitted by the appellant. Reliance was placed on the decision of Hon’ble Supreme Court in the case of Ashokbhal Chimanbhai vs. CIT 56 ITR 42 & CIT vs. Goverdhan Ltd. 69 ITR 675. Here the contention of the appellant is that income may accrue or arise to the appellant if he acquires a right to receive the same. In the instant case, the income relating to the unaccepted data never accrue to the appellant and hence, cannot be taxed. 8.3. I have gone through the submissions and Form No.26AS furnished by the appellant. LN has…

DCIT, New Delhi vs. M/S. Sahara India Power Corporation Ltd., Pune

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 5067/DEL/2013[2005-06]Status: PendingITAT Delhi28 Apr 2023AY 2005-06

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…ally incurred or the liability in respect thereof has accrued even though it may have to be discharged at some future date." 16. We may also, at this stage, usefully refer to another judgment of the Apex Court in the case of CIT v. Shri Goverdhan Ltd. 119681 69 ITR 675 in the following terms : "It is, however, well-established that the income may accrue to an assessee without actual receipt of the same and if the assessee acquires a right to receive the income, the income can be said to have accrued to him though it may be received later on, on its being ascertained. The legal position is that a liability depen…

Sahara India Power Corporation Ltd, Pune vs. DCIT, New Delhi

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 1155/DEL/2009[2004-05]Status: DisposedITAT Delhi28 Apr 2023AY 2004-05

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…ally incurred or the liability in respect thereof has accrued even though it may have to be discharged at some future date." 16. We may also, at this stage, usefully refer to another judgment of the Apex Court in the case of CIT v. Shri Goverdhan Ltd. 119681 69 ITR 675 in the following terms : "It is, however, well-established that the income may accrue to an assessee without actual receipt of the same and if the assessee acquires a right to receive the income, the income can be said to have accrued to him though it may be received later on, on its being ascertained. The legal position is that a liability depen…

Sahara India Power Corporation Ltd., Pune vs. Assistant Commissioner of Income-Tax

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 109/PUN/2007[2003-04]Status: DisposedITAT Delhi28 Apr 2023AY 2003-04

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…ally incurred or the liability in respect thereof has accrued even though it may have to be discharged at some future date." 16. We may also, at this stage, usefully refer to another judgment of the Apex Court in the case of CIT v. Shri Goverdhan Ltd. 119681 69 ITR 675 in the following terms : "It is, however, well-established that the income may accrue to an assessee without actual receipt of the same and if the assessee acquires a right to receive the income, the income can be said to have accrued to him though it may be received later on, on its being ascertained. The legal position is that a liability depen…

M/S.Tamilnadu Generation and Distribution Corpn. Ltd., Chennai vs. ACIT, Chennai

In the result, appeal filed by the assessee is

ITA 2262/CHNY/2016[2006-07]Status: DisposedITAT Chennai28 Feb 2022AY 2006-07

Bench: Shri V. Durga Rao & Shri G. Manjunatha

Section 36(1)(viia)

…Renowned Auto Products Mfrs. Ltd. Vs. ITO: (2013) (354 ITR 127) : High Court of Madras. In this case, it was held that where provision for warranty cost was not created on a scientific basis, same was not allowable. (c) CIT Vs. Shri Goverdhan Ltd. : (1968) (69 ITR 675)(SC) - In this case, the Hon’ble Supreme Court has observed that “the legal position is that a liability depending upon a contingency is not a debt in presenti or in futuro till the contingency happens. But, if it is a debt; the fact that the amount has to be ascertained does not make it any the less a debt if the liability is certain and what rem…

Assistant Commissioner of Income Tax Circle-1, Bellary vs. Shri Vazhyiel House Narayanan Kutty Menon, Bellary

In the result, the revenue’s appeal is partly allowed for statistical purposes

ITA 1545/BANG/2018[2014-15]Status: DisposedITAT Bangalore05 Oct 2021AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year : 2014-15

For Appellant: Shri B.K. Singh, CIT(DR)(ITAT), BengaluruFor Respondent: Shri B.S. Balachandran, Advocate

…e may accrue to an assessee without actual receipt of the same. If the assessee acquires a right to receive the income, the income can be said to have accrued to him though it may be received later, on its being ascertained - CIT v. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) / CIT v. Nandram Hunatram (1976) 103 ITR 433 (On). Receipt is not the only test of chargeability to tax, if income arises or accrues, it may become liable to tax - CIT v. Ashokbhai Chimanbhai (1965) 56 ITR 42 (SC) / CIT v. A.B.V Gowda (1986) 157 ITR 697 (Kar). Each year being a self contained unit, taxes of particular year is payable with ref…

DCIT 6(2)(1), Mumbai vs. Ceat Ltd, Mumbai

In the result, appeal of the assessee is allowed, and departmental appeal is treated as infructuous

ITA 673/MUM/2017[2008-09]Status: DisposedITAT Mumbai22 Sept 2021AY 2008-09

Bench: Shri Shamim Yahya, Am & Shri Pavan Kumar Gadale, Jm Dcit-6(2)(1) M/S. Ceat Ltd. Room No.563, Aaykar Bhawan Rpg House, 463 M.K.Road, Churchgate Vs. Dr. Annie Besant Road, Worli Mumbai-400 020 Mumbai-400 030

For Appellant: Shri Vijay MehtaFor Respondent: Shri V. Sreekar & Shri Manprit Duggal
Section 143(3)Section 147Section 148Section 2Section 47

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI PAVAN KUMAR GADALE, JM DCIT-6(2)(1) M/s. Ceat Ltd. Room No.563, Aaykar Bhawan RPG House, 463 M.K.Road, Churchgate Vs. Dr. Annie Besant Road, Worli Mumbai-400 020 Mumbai-400 030 PAN/GIR No. AAACC1645G (Revenue) : (Assessee) & M/s. Ceat Ltd. ACIT, Range-6(2)(1) RPG House, 463 Aaykar Bhawan Dr. Annie Besant Road, Worli Vs. M.K.Road, Churchgate Mumbai-400 030 Mumbai-400 020 PAN/GIR No. AAACC1645G (Assessee) : (Revenue) Assessee by : Shri Vijay Mehta Revenue by : Shri V. Sreekar & Shri Manprit Duggal Date of Hearing : 13.0…

DCIT Circle 15(3)(2), Mumbai vs. M/S Shivaami Clound Services Pvt Ltd., Mumbai

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

ITA 2599/MUM/2019[2014-15]Status: DisposedITAT Mumbai30 Jun 2021AY 2014-15
For Appellant: Shri Himanshu GandhiFor Respondent: Shri T. S. Khalsa (DR)
Section 143(2)

…ctually incurred or the liability in respect thereof has accrued even though it may have to be discharged at some future date." 16. We may also, at this stage, usefully refer to another judgment of the Apex Court in the case of C/T v. Shri Goverdhan Ltd. 9681 69 ITR 675 in the following terms : "It is, however, well-established that the income may accrue to an assessee without actual receipt of the same and if the assessee acquires a right to receive the income, the income can be said to have accrued to him though it may be received later on, on its being ascertained. The legal position is that a liability depend…

Pearl Coschem Pvt Ltd., Mumbai vs. Dy CIT 3 (2)(2), Mumbai

Accordingly, the grounds raised by the assessee are allowed for statistical purpose

ITA 6611/MUM/2019[2013-14]Status: DisposedITAT Mumbai02 Jun 2021AY 2013-14

Bench: Shri Mahavir Singh () & Shri S. Rifaur Rahman () Assessment Year: 2013-14

For Appellant: Mr. Vijay Mehta, ARFor Respondent: Ms. Shreekala Pardeshi, DR
Section 143Section 143(3)Section 2(24)Section 45Section 5

…ncome, profits or gains may accrue to a person, it is necessary that he must have acquired a right to receive sale or right to the income, profits or gains has become vested in him as decided by the Supreme Court in the decision of CIT Vs. Shri Govardhan Ltd. 69 ITR 675. The Hon'ble Supreme Court in the case of Morvi Industries Ltd. vs. CIT 82 ITR 835 decided that the postponement of payment does not affect the accrual of the income. The fact that the amount of the income is not subsequently received by the assessee would not also detract from or efface the accrual of the income, although non receipt may in appro…

M/S. Veerabhadrappa Sangappa & Company, Sandur vs. The Assistant Commissioner of Income Tax, Circle- 1, Bellary

In the result appeal filed by assessee stands partly allowed

ITA 1054/BANG/2019[2013-14]Status: DisposedITAT Bangalore08 Dec 2020AY 2013-14

Bench: Shri. B. R. Baskaran & Smt. Beena Pillaiassessment Year : 2013–14

For Appellant: Shri Chythanya K.K, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT
Section 145Section 28Section 5

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI. B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER Assessment Year : 2013–14 M/s Veerabhadrappa The Asst. Commissioner of Sangappa & Co., Income Tax, No.2/138, Bellary Road, Circle – 1, Sandur-583 119. Vs. Bellary. PAN – AACFV 4029 J. APPELLANT RESPONDENT Appellant by : Shri Chythanya K.K, Advocate Respondent by : Shri Muzaffar Hussain, CIT Date of Hearing : 11-09-2020 Date of Pronouncement : 08-12-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against order dated 22/03/2019…

DCIT, New Delhi vs. M/S Ircon International Ltd., New Delhi

In the result the appeal of the Revenue is dismissed

ITA 2449/DEL/2011[2005-06]Status: DisposedITAT Delhi30 Jan 2020AY 2005-06

Bench: Shri N.K. Billaiya & Shri Kuldip Singhita No. 977/Del/2010 [A.Y 2004-05]

For Appellant: Shri Rakesh Gupta. AdvFor Respondent: Shri J.K. Mishra, CIT-DR

…our of assessee and assessee acquires a right to receive the interest. Sub-s. (3) of s. 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT vs. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) has observed at p. 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under s. 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not dependent…

M/S Ircon International Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result the appeal of the Revenue is dismissed

ITA 2220/DEL/2011[2005-06]Status: DisposedITAT Delhi30 Jan 2020AY 2005-06

Bench: Shri N.K. Billaiya & Shri Kuldip Singhita No. 977/Del/2010 [A.Y 2004-05]

For Appellant: Shri Rakesh Gupta. AdvFor Respondent: Shri J.K. Mishra, CIT-DR

…our of assessee and assessee acquires a right to receive the interest. Sub-s. (3) of s. 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT vs. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) has observed at p. 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under s. 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not dependent…

Ircon International Ltd., New Delhi vs. DCIT, New Delhi

In the result the appeal of the Revenue is dismissed

ITA 977/DEL/2010[2004-05]Status: DisposedITAT Delhi30 Jan 2020AY 2004-05

Bench: Shri N.K. Billaiya & Shri Kuldip Singhita No. 977/Del/2010 [A.Y 2004-05]

For Appellant: Shri Rakesh Gupta. AdvFor Respondent: Shri J.K. Mishra, CIT-DR

…our of assessee and assessee acquires a right to receive the interest. Sub-s. (3) of s. 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT vs. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) has observed at p. 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under s. 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not dependent…

DCIT, New Delhi vs. M/S. Ircon International Ltd., New Delhi

In the result the appeal of the Revenue is dismissed

ITA 1491/DEL/2010[2004-05]Status: DisposedITAT Delhi30 Jan 2020AY 2004-05

Bench: Shri N.K. Billaiya & Shri Kuldip Singhita No. 977/Del/2010 [A.Y 2004-05]

For Appellant: Shri Rakesh Gupta. AdvFor Respondent: Shri J.K. Mishra, CIT-DR

…our of assessee and assessee acquires a right to receive the interest. Sub-s. (3) of s. 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT vs. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) has observed at p. 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under s. 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not dependent…

Jt. CIT -(OSD)-2(1)(2), Mumbai vs. Central Bank of India, Mumbai

In the result, appeal of the revenue is dismissed

ITA 3673/MUM/2018[2012-13]Status: DisposedITAT Mumbai29 Jan 2020AY 2012-13

Bench: Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm Central Bank Of India Vs. The Deputy Commissioner 4Th Floor, Of Income Tax – 2(1) Chandermukhi Building Aayakar Bhavan Nariman Point Mumbai – 400 020 Mumbai – 400 021 Pan/Gir No.Aaacc2498P (Appellant) .. (Respondent) Jt. Cit (Osd)-2(1)(2) Vs. Central Bank Of India R.No.561, 5Th Floor 4Th Floor, Aayakar Bhavan, M.K.Road Chandermukhi Building Mumbai – 400 020 Nariman Point Mumbai – 400 021 Pan/Gir No.Aaacc2498P (Appellant) .. (Respondent) Assessee By Shri Nitesh Joshi Revenue By Shri V. Sreekar Date Of Hearing 16/01/2020 Date Of Pronouncement 29/01/2020 आदेश / O R D E R Per M. Balaganesh (A.M): These Cross Appeals In Ita Nos.3739/Mum/2018 & 3673/Mum/2018 For A.Y.2012-13 Arises Out Of The Order By The Ld. Commissioner Of Income Tax (Appeals)-3, Mumbai In Appeal No.Cit(A)-3/Dcit2(1) It- 44/Tr.4/16-17 Dated 30/01/2018 (Ld. Cit(A) In Short) Against The Order Of Assessment Passed U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As Act) Dated 25/03/2014 By The Ld. Dy. Commissioner Of Income Tax -2(1), Mumbai (Hereinafter Referred To As Ld. Ao).

Section 143(3)Section 14ASection 14A(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH MUMBAI BEFORE SHRI M. BALAGANESH, AM & SHRI AMARJIT SINGH, JM Central Bank of India Vs. The Deputy Commissioner 4th Floor, of Income Tax – 2(1) Chandermukhi Building Aayakar Bhavan Nariman Point Mumbai – 400 020 Mumbai – 400 021 PAN/GIR No.AAACC2498P (Appellant) .. (Respondent) Jt. CIT (OSD)-2(1)(2) Vs. Central Bank of India R.No.561, 5th Floor 4th Floor, Aayakar Bhavan, M.K.Road Chandermukhi Building Mumbai – 400 020 Nariman Point Mumbai – 400 021 PAN/GIR No.AAACC2498P (Appellant) .. (Respondent) Assessee by Shri Nitesh Joshi Revenue by Shri V. Sreekar Date of He…

Income Tax Officer-23(1)(2), Mumbai vs. Indian Corporate Loan Securities Trust 2008 Series 14, Mumbai

In the result, Revenue's appeal for A

ITA 4789/MUM/2017[2010-11]Status: DisposedITAT Mumbai29 Jan 2020AY 2010-11

Bench: Shri M.Balaganesh, Am & Shri Ravish Sood, Jm The Ito-23(1)(2) Vs. M/S. Indian Corporate Loan Room No.18 Securities Trust 2008 Matru Mandir Series 14 Grant Road Il & Fs Financial Centre Mumbai – 400 007 Plot No.C-22, G Block 3Rd Floor, Bandra Kurla Complex, Bandra East Mumbai – 400 051 Pan/Gir No. Aaat16786P (Appellant) .. (Respondent) The Ito-23(1)(2) Vs. M/S. Indian Corporate Loan Room No.18 Securities Trust Series Iii Matru Mandir 2009 Grant Road Il & Fs Financial Centre Mumbai – 400 007 Plot No.C-22, G Block Bandra Kurla Complex, Bandra East Mumbai – 400 051 Pan/Gir No. Aaat17440L (Appellant) .. (Respondent) The Ito-23(1)(2) Vs. M/S. Indian Corporate Loan Room No.18 Securities Trust Series Matru Mandir 2008 Series 36 Grant Road Il & Fs Financial Centre Mumbai – 400 007 Plot No.C-22, G Block Bandra Kurla Complex, Bandra East Mumbai – 400 051 Pan/Gir No. Aaat16925L (Appellant) .. (Respondent) आदेश / O R D E R Per Bench: These Appeals In Ita No.4789/Mum/2017, 4791/Mum/2017 & 4794/Mum/2017 For A.Y.2010-11 Arise Out Of The Order By The Ld. Commissioner Of Income Tax (Appeals)-32, Mumbai In Appeal No.Cit(A)- 32/It-604/23(1)(2)/2015-16, Cit(A)-32/It-48/19(3)(2)/2012-13 & Cit(A)-32/It-483/Ito-19(3)(4)/12-13 Respectively Dated 24/04/2017 (Ld. Cit(A) In Short) Against The Order Of Assessment Passed U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As Act) Dated 26/02/2016, 31/10/2012 Respectively By The Ld. Income Tax Officer – 23(1)(2) & 19(3)(2) Respectively, Mumbai (Hereinafter Referred To As Ld. Ao).

Section 10Section 143(3)Section 148Section 161Section 161(1)Section 61

…plies that the interest accrues on day to day basis. It was also submitted that interest on loan is not return on securities. In support thereof reliance was placed on the decisions of the Hon'ble Supreme Court in the cases of CIT v. Shri Goverdhan Ltd.[1968] 69 ITR 675 and Morvi Industries Ltd. v. CIT[1971] 82 ITR 835. 11.3.2 Revenue further contended that the decision of the Hon'ble Bombay High Court relied by the appellant in the case of Credit Suisse First Boston (Cyprus) Ltd. (supra) (Department's paper book Vol. II, pg. 227 to 234) was not applicable as the present case is not that of securities, as was the…

DCIT, New Delhi vs. M/S Ircon International Ltd., New Delhi

In the result, all the three appeals of the assessee for A

ITA 3805/DEL/2008[2003-04]Status: DisposedITAT Delhi31 Oct 2019AY 2003-04

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…our of assessee and assessee acquires a right to receive the interest. Sub-s. (3) of s. 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT vs. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) has observed at p. 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under s. 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not dependent…

Ircon International Ltd., New Delhi vs. DCIT, Circle-11(1), Delhi

In the result, all the three appeals of the assessee for A

ITA 705/DEL/2006[2002-2003]Status: DisposedITAT Delhi31 Oct 2019AY 2002-2003

Bench: : Shri Bhavnesh Saini & Shri O.P. Kant

Section 80HSection 80I

…our of assessee and assessee acquires a right to receive the interest. Sub-s. (3) of s. 244A only affects its quantification under certain circumstances and not the right of interest. The Hon'ble Supreme Court in the case of CIT vs. Shri Goverdhan Ltd. (1968) 69 ITR 675 (SC) has observed at p. 681 that once a debt is created, then the liability cannot be said to be contingent merely because it is to be quantified at later date. Under s. 244A, even the interest is quantified immediately whenever a refund is issued. In our view, the right to grant interest is absolute since existence of such right is not dependent…

CIT v. Shri Goverdhan Ltd. (69 ITR 675) — Cited in 37 Judgments | BharatTax