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 366,339 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.

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

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

ITA 2234/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Oct 2019AY 2001-2002

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 Limited, New Delhi vs. ACIT, New Delhi

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

ITA 3804/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 vs. Addl. CIT, Range-11

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

ITA 1825/DEL/2005[2001-2002]Status: DisposedITAT Delhi31 Oct 2019AY 2001-2002

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…

DCIT, Circle - 1(1), Kolkata vs. M/S. Exide Industries Ltd., Kolkata

Appeal is dismissed

ITA 1378/KOL/2017[2002-03]Status: DisposedITAT Kolkata24 Apr 2019AY 2002-03

Bench: Shri J.Sudhakar Reddy & Shri S.S.Godaraassessment Year: 2002-03 Dcit, Circle-1(1), M/S Exide Industries Ltd. बनाम P-7, Chowringhee Exide House, 59E, / Square, R.No.20, V/S. Chowringhee Road, 7Th Floor, Kolkta-69 Kolkata-700 020 [Pan No.Aaace 6641 E] .. अपीलाथ" /Appellant ""यथ" /Respondent Shri C.J.Singh,Jcit-Sr-Dr अपीलाथ" क" ओर से/By Appellant Shri A. Sinha, Aca ""यथ" क" ओर से/By Respondent 24-01-2019 सुनवाई क" तार"ख/Date Of Hearing 24-04-2019 घोषणा क" तार"ख/Date Of Pronouncement आदेश /O R D E R Per S.S.Godara:- This Revenue’S Appeal For Assessment Year 2002-03 Arises Against The Commissioner Of Income Tax (Appeals)-22, Kolkata’S Order Dated 27.03.2017 Passed In Case No.123/Cit(A)-22/02-0310-11/Kol, Involving Proceedings U/S 143(3) R.W.S. 251 R.W.S. 254 Of The Income Tax Act, 1961; In Short ‘The Act’. 2. The Revenue Pleads The Following Substantive Grounds In Its Instant Appeal:- “1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Is Justified In Deleting Rs.3.85 Crores Routed Through P&L A/C Under The Head Dealers Incentive Disregarding The Fact That The Assessing Officer'S Addition Has Been Based On Discrepancies, Crystal Clear As It Looks, In Terms Of The Supporting Credit Notes Furnished By The Assessee. 2. Whether On The Facts & In The Circumstances Of The Case & In Law, The Ld. Cit(A) Is Justified In Deleting The Addition Of Rs.2.04 Crores Routed Through Balance Sheet On Account Of Dealers Incentive – This Is The Area Of Contention Because The

Section 143(3)

…quent year. The general rule is that the deduction can be permitted in respect of those expenses or losses which have accrued in the relevant accounting year. In making these submissions, he relied on the following decisions: “i) CIT –Vs- Govardhan Lal (1968) 69 ITR 675 (SC); ii) Bharat Earth Movers –Vs- CIT 245 ITR 428 (SC); iii) Calcutta Co. Ltd. –Vs- CIT 37 ITR 1 (SC); iv) CIT –Vs- Swadeshi Mining Manufacturing Company Ltd. 112 ITR 276 (Cal) and v) Hukumchand Jute & Industries Ltd. –Vs- CIT 241 ITR 517 (Cal). 8. Concluding his arguments and further making reliance on a decision of the Hon’ble Supreme Court in…

ITO 9(1)(3), Mumbai vs. Anchor Residency P.Ltd, Mumbai

In the result, the appeal filed by the revenue is partly allowed

ITA 4407/MUM/2015[2011-12]Status: DisposedITAT Mumbai14 Mar 2018AY 2011-12

Bench: Shri Joginder Singh () & Shri G Manjunatha ()

Section 143(2)Section 36(1)(iii)

…debt owed to him by somebody, Unless and until there is created in favour of the assessee a debt due by somebody it cannot be said that he has acquired a right to receive the income or that income has accrued to him. 2. CIT v/s. Shri Goverdhan Ltd. - [(1968) 69 ITR 675 (SC)J 3. CIT v/s. Excel Industries Ltd. - [(2013) 358 ITR 295 (SCJJ Even in case of mercantile system, income does not accrue unless the corresponding liability is created by the payer. 4. CIT v/s. ACE Builders - [(1993) 202 ITR 324 (Bom)J [H.N. 324] [Income is held to accrue only when the assessee acquires a right to receive that income. In other…

CIT vs. Jagdish Prasad Gupta

ITA/933/2011HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

CIT vs. Jagdish Prasad Gupta

ITA/935/2011HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

Pr. Commissioner of Income Tax-10 vs. Jagdish Prashad Gupta

ITA/424/2016HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

CIT vs. Jagdish Prasad Gupta

ITA/787/2011HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

CIT vs. Jagdish Prasad Gupta

ITA/1535/2010HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

CIT vs. Jagdish Prasad Gupta

ITA/711/2011HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

Jagdish Prasad Gupta

ITA/695/2010HC Delhi18 Aug 2017

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MS. JUSTICE PRATHIBA M. SINGH

Section 260A

…986 to 31st March, 1996 calculated by the Railways at Rs. 7.80 crore and all subsequent demands were actually a claim for damages. It was, therefore no better than a contingent liability. Reliance was placed on the decision in CIT v. Goverdhan Ltd. [1968] 69 ITR 675 (SC); Shree Sajjan Mills Ltd. v. Commissioner of Income Tax, M.P. [1985] 156 ITR 585 (SC); CIT v. ITA 711/2011 & batch matters Page 22 of 39 Indian Smelting & Refinery Co. Ltd. [1998] 230 ITR 194 (Bom.) as affirmed in Indian…

ITO 19(3)(2), Mumbai vs. Indian Corporate Loan Securitization Trust 2008 Series 14I, Mumbai

In the result, Revenue’s appeal for A

ITA 4343/MUM/2013[2009-10]Status: DisposedITAT Mumbai17 Feb 2017AY 2009-10

Bench: Shri Jason P. Boaz & Shri Sandeep Goasinindian Corporate Loan Securitisation Income Tax Officer-9(3)(2) Trust- 2008 Series 14 Mumbai C/O. Il & Fs Trust Co. Ltd. Vs. 10Th Floor, “G” Block, Bkc Bandra (E), Mumbai 400051 Pan – Aaati6786P Appellant Respondent Income Tax Officer-(23)1)(2) Indian Corporate Loan [Erstwhile Ito-19(3)(2)] Securitisation Trust- 2008 Series 14 Room No. 108, Matru Mandir Vs. C/O. Il & Fs Trust Co. Ltd. Tardeo Road, Grant Road 10Th Floor, “G” Block, Bkc Mumbai 400007 Bandra (E), Mumbai 400051 Pan – Aaati6786P Appellant Respondent

For Appellant: Shri S.E. Dastur &For Respondent: Shri P.C. Chhotaray

…se implies 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 vs. Shri Goverdhan Ltd. 69 ITR 675 (SC) and Morvi Industries Ltd. vs. CIT 82 ITR 835 (SC). 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 (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 case before the Hon'ble High…

Krishak Bharati Cooperative Limited vs. Commissioner of Income Tax & Anoather

The appeals are dismissed

ITA/84/2000HC Delhi23 Aug 2013
Section 260ASection 36(1)(iii)

…ITA Nos. 84/2000 & 85/2000 Page 1 of 14 $~Part –IIB (R-32 & 33) * IN THE HIGH COURT OF DELHI AT NEW DELHI + INCOME TAX APPEAL NOS. 84/2000 & 85/2000 Date of decision: 23rd August, 2013 KRISHAK BHARATI COOPERATIVE LIMITED ..... Appellant Through Mr. Rajat Navet, Advocate. versus COMMISSIONER OF INCOME TAX & ANOATHER ..... Respondents Through Mr. N.P. Sahni, Sr. Standing Counsel & Mr. Ruchesh Sinha, Advocate. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA H…

Commissioner of Income Tax vs. Gautam R. Chadha

Appeals stand disposed of

ITA - 310 / 2009HC Delhi27 Jul 2011

…ITA Nos.310/2009, 358/2011 & 1115/2010 Page 1 of 14 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA No.310/2009 % Date of Reserve: May 12, 2011 Date of Decision: July 27, 2011 COMMISSIONER OF INCOME TAX … Appellant Through: Ms. Prem Lata Bansal, Sr. Advocate with Mr. Deepak Anand, Advocates Versus GAUTAM R. CHADHA … RESPONDENT Through: Mr. A.N. Hakser, Sr. Advocate with Mr. Udyan Jain and Mr. Ashok Sikka, Advocates AND…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

ITA-1093/2008HC Delhi29 Oct 2010

…hereof 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 Commissioner of Income Tax, Bombay City II Vs. Shri Goverdhan Ltd. [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 liabilit…

Deputy Commissioner of Income Tax vs. Curls & Curves India Ltd

ITA - 1093 / 2008HC Delhi29 Oct 2010

…hereof 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 Commissioner of Income Tax, Bombay City II Vs. Shri Goverdhan Ltd. [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 liabilit…