CIT v. T.V. Sundaram Iyengar & Sons Ltd.

222 ITR 344Supreme Court of India1996#398 most cited

What is CIT v. T.V. Sundaram Iyengar & Sons Ltd. authority for?

Unclaimed deposits received in the course of trading transactions and sundry credit balances written back are taxable as business income under Section 41(1) of the Income-tax Act, 1961, as they constitute a cessation of trading liability.

223

judgments rely on this decision, according to BharatTax’s citation analysis of 367,514 Indian tax judgments — from 2002 to 2026.

Also referred to as

CIT v. T.V. Sundaram Iyengar & Sons Ltd. · 222 ITR 344 · Section 41(1) · unclaimed trading deposits · sundry credit balances written back · cessation of trading liability · taxability of income · waiver of loan applicability · business income

Sections most often in play

Section 41(1)Section 14ASection 28(iv)Section 143(3)Section 40(a)(ia)Section 115JBSection 133ASection 142(2A)
Read the full judgment

Issues it is cited on

section 2(19aa)waiver of loansection 28(iv)section 43(b)section 43(6)resulting companysection 41(1)section 43(1)section 41demergersection 32(1)(ii)written down value

Judgments citing CIT v. T.V. Sundaram Iyengar & Sons Ltd.

Deputy Commissioner of Income-Tax, Circle -3, Nashik vs. Windsor Machines Ltd., Mumbai

In the result, the appeal of Revenue is partly allowed

ITA 915/PUN/2022[2011-12]Status: DisposedITAT Pune20 Oct 2023AY 2011-12

Bench: Shri S.S. Viswanethra Ravi & Shri G.D. Padmahshali

For Appellant: Shri Kishor B. PhadkeFor Respondent: Shri Ajay Kumar Kesari
Section 3Section 32(2)

…ess nor u/s. 28(iv) of the Act as there is no benefit received by the assessee in some other form rather than in the shape of money. The ld. DR placed on record the decision of Hon’ble Supreme Court in the case of T.V. Sundaram Iyengar & Sons Ltd. reported in 222 ITR 344 (SC) and argued that the ratio 8 ITA No. 915/PUN/2022, A.Y. 2011-12 laid down by the Hon’ble Supreme Court is applicable to the present facts, waiver of principal amount of loan becomes the assessee own money and chargeable to tax. Further, he referred to the decision of Hon’ble High Court of Delhi in the case of Rollatainers Ltd. reported in 3…

ACIT, Circle- 26(1), New Delhi vs. V C Solutions Pvt. Ltd., New Delhi

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

ITA 1884/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Aug 2023AY 2014-15

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. V. K. Agarwal, ARFor Respondent: Sh. P. Barnwal, CIT DR
Section 14ASection 36Section 36(1)

…is dismissed. Share Application Money - Write off: 8. The Assessing Officer has treated the forfeiture of share application money as “Revenue” in nature. The Assessing Officer relied on the judgment in the case of CIT Vs. T.V. Sundaiam Iyengar & Sons Ltd. (222 ITR 344) (SC), CIT Vs. Ramaniyam Homes (P.) Ltd. (384 ITR 530), Rollatainers Ltd. Vs. CIT (339 ITR 54) (Del.), CIT Vs. Ravindra C. Gajiwala (204 ITR 157) (Guj.) and International Imex (Agents) P. Ltd. Vs. CIT (79 ITR 11) (Del.). The gist of the decisions relied upon by the AO is as under: “1. CIT vs. T.V. Sundaiam Iyengar & Sons Ltd. [1996] 222 ITR 344…

S T I India Ltd., Indore vs. ACIT-5(1), Indore

Appeals are disposed of as under:

ITA 850/IND/2019[2013-14]Status: DisposedITAT Indore24 Aug 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

ACIT-5(1), Indore vs. S T I India Ltd., Indore

Appeals are disposed of as under:

ITA 784/IND/2019[2013-14]Status: DisposedITAT Indore24 Aug 2023AY 2013-14

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

ACIT-5(1), Indore vs. S T I India Ltd., Indore

Appeals are disposed of as under:

ITA 24/IND/2019[2015-16]Status: DisposedITAT Indore24 Aug 2023AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

ACIT-5(1), Indore vs. S T I India Ltd., Indore

Appeals are disposed of as under:

ITA 23/IND/2019[2014-15]Status: DisposedITAT Indore24 Aug 2023AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

ACIT-5(1), Indore vs. S T I India Ltd., Indore

Appeals are disposed of as under:

ITA 22/IND/2019[2012-13]Status: DisposedITAT Indore24 Aug 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

S T I India Ltd., Indore vs. ACIT-5(1), Indore

Appeals are disposed of as under:

ITA 13/IND/2019[2015-16]Status: DisposedITAT Indore24 Aug 2023AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

S T I India Ltd., Indore vs. ACIT-5(1), Indore

Appeals are disposed of as under:

ITA 12/IND/2019[2014-15]Status: DisposedITAT Indore24 Aug 2023AY 2014-15

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

S T I India Ltd., Indore vs. ACIT-5(1), Indore

Appeals are disposed of as under:

ITA 11/IND/2019[2012-13]Status: DisposedITAT Indore24 Aug 2023AY 2012-13

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

…g the Apex Court Judgment in the case of CIT vs. Sugauli Sugar Works (P) Ltd, (1999) 152 CTR (SC) 46: (1999) 236 ITR 518(SC) and aftger distinguishing the judgment in the case of CIT vs. T. V. Sundaram Iyengar & Sons Limited, (1996) 136 CTR (S.C.) 444: (1996) 222 ITR 344 (SC). 7.5 Relying upon the above decisions, the Hon'ble Jurisdictional Bench of ITAT Indore vide its Order dated 16.03.2017 in the case of Smt. Abha Devi Agrawal in I.T.A.No. 58/Ind/2015 has allowed the appeal on similar issue and deleted the entire amount of addition as made by the AO u/s 41(1) of the Act. The Hon'ble ITAT in para 2.5 has obser…

M/S Gimpex Pvt. Ltd., Chennai vs. ACIT, Central Circle-1(2), Chennai

Appeals stands dismissed

ITA 77/CHNY/2022[2012-13]Status: DisposedITAT Chennai09 Aug 2023AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manomohan Das

For Appellant: Shri D. Anand (Advocate)-Ld. ARFor Respondent: Dr. R. Mohan Reddy,(CIT) –Ld. DR
Section 143Section 43(5)Section 43(5)(a)

…ain a date of reckoning and hence the reason for treating it as a long term capital asset having a period of holding of more than 36 months is also not proven. Relying on the decision of Hon’ble Supreme Court in the case of CIT vs. TV Sundaram lyengar & sons (222 ITR 344), Ld. AO held that the amount changes its character when the amount becomes the assessee's own money because of limitation or by any other statutory or contractual right. Though the assessee had offered the gain to taxation, however, it has treated the same as Long Term Capital Gains (LTCG) without any basis. Therefore, the said amount was treate…

DCIT, Central Circle 1(2), Chennai vs. M/S.Gimpex Limited, Chennai

Appeals stands dismissed

ITA 176/CHNY/2022[2012-13]Status: DisposedITAT Chennai09 Aug 2023AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manomohan Das

For Appellant: Shri D. Anand (Advocate)-Ld. ARFor Respondent: Dr. R. Mohan Reddy,(CIT) –Ld. DR
Section 143Section 43(5)Section 43(5)(a)

…ain a date of reckoning and hence the reason for treating it as a long term capital asset having a period of holding of more than 36 months is also not proven. Relying on the decision of Hon’ble Supreme Court in the case of CIT vs. TV Sundaram lyengar & sons (222 ITR 344), Ld. AO held that the amount changes its character when the amount becomes the assessee's own money because of limitation or by any other statutory or contractual right. Though the assessee had offered the gain to taxation, however, it has treated the same as Long Term Capital Gains (LTCG) without any basis. Therefore, the said amount was treate…

Chhattisgarh State Power Transmission Company Ltd, Raipur vs. Assistant Commissioner of Income Tax-4(1), Raipur

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

ITA 81/RPR/2020[2011-12]Status: DisposedITAT Raipur04 Jul 2023AY 2011-12

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.81/Rpr/2020 "नधा"रण वष" / Assessment Year : 2011-12 Chhattisgarh State Power Transmission Company Ltd. Executive Director (Fin.), Csptcl, Second Floor, Sldc Building, Cseb Office Campus, Danginiya Raipur-492 013 (C.G.) Pan : Aadcc5773E .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax, Circle-4(1), Raipur (C.G.) ……""यथ" / Respondent

For Appellant: Shri R.B Doshi, CAFor Respondent: Shri V.K Singh, CIT-DR
Section 143(2)Section 143(3)

…e Power Transmission Company Ltd. ITA No.81/RPR/2020 “32. Ground of appeal no. 4 relates to addition of Rs. 19,98,021/- on account of remission and cessation of liability. The Assessing Officer relied on the judgment of CIT Vs. Sundaram lyengar and Sons Ltd, 222 ITR 344 and held that as the cheque had become stale and the parties have not encashed the same, therefore, they are not payable and, hence, shall be treated as income of the assessee. The CIT(A) accepted the contention of the assessee, that as the liability is still standing in the balance sheet, therefore, it cannot be assumed that it had ceased to exi…

Chhattisgarh State Power Transmission Company Limited, Raipur vs. Assistant Commissioner of Income Tax, Circle-4(1), Raipur

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

ITA 143/RPR/2019[2012-13]Status: DisposedITAT Raipur04 Jul 2023AY 2012-13

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.81/Rpr/2020 "नधा"रण वष" / Assessment Year : 2011-12 Chhattisgarh State Power Transmission Company Ltd. Executive Director (Fin.), Csptcl, Second Floor, Sldc Building, Cseb Office Campus, Danginiya Raipur-492 013 (C.G.) Pan : Aadcc5773E .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax, Circle-4(1), Raipur (C.G.) ……""यथ" / Respondent

For Appellant: Shri R.B Doshi, CAFor Respondent: Shri V.K Singh, CIT-DR
Section 143(2)Section 143(3)

…e Power Transmission Company Ltd. ITA No.81/RPR/2020 “32. Ground of appeal no. 4 relates to addition of Rs. 19,98,021/- on account of remission and cessation of liability. The Assessing Officer relied on the judgment of CIT Vs. Sundaram lyengar and Sons Ltd, 222 ITR 344 and held that as the cheque had become stale and the parties have not encashed the same, therefore, they are not payable and, hence, shall be treated as income of the assessee. The CIT(A) accepted the contention of the assessee, that as the liability is still standing in the balance sheet, therefore, it cannot be assumed that it had ceased to exi…

Chhattisgarh State Power Generation Co. Ltd., Raipur vs. Dy. Commissioner of Income Tax-1(1), Raipur

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

ITA 24/RPR/2022[2018-19]Status: DisposedITAT Raipur15 Jun 2023AY 2018-19

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.16/Rpr/2017 "नधा"रण वष" / Assessment Year : 2009-10 Chhattisgarh State Power Generation Company Ltd. O/O. Executive Director-Finance Ground Floor, Vidyut Seva Bhawan, Daganiya, Raipur-492 001 (C.G.) Pan : Aadcc5772F .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax, Circle-1(2), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita No.24/Rpr/2022 "नधा"रण वष" / Assessment Year : 2018-19 Chhattisgarh State Power Generation Company Ltd. Ground Floor, Vidyut Seva Bhawan, Daganiya, Raipur-492 001 (C.G.) Pan : Aadcc5772F .......अपीलाथ" / Appellant बनाम / V/S.

For Appellant: Shri R.B Doshi, CAFor Respondent: Shri V.K Singh, CIT-DR
Section 143(2)Section 143(3)Section 32

…al no. 4 relates to addition of Rs. 19,98,021/- on account of remission and cessation of liability. The Assessing Officer relied on the judgment of CIT Vs. Sundaram lyengar and 15 Chhattisgarh State Power Generation Company Ltd. ITA No.24/RPR/2022 Sons Ltd, 222 ITR 344 and held that as the cheque had become stale and the parties have not encashed the same, therefore, they are not payable and, hence, shall be treated as income of the assessee. The CIT(A) accepted the contention of the assessee, that as the liability is still standing in the balance sheet, therefore, it cannot be assumed that it had ceased to exi…

The Chhattisgarh State Power Generation Company Limited, Raipur, Raipur (Cg) vs. The Asstt. Commissioner of Income Tax 1(2), Raipur, Raipur (Cg)

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

ITA 16/BIL/2017[2009-10]Status: DisposedITAT Raipur15 Jun 2023AY 2009-10

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.16/Rpr/2017 "नधा"रण वष" / Assessment Year : 2009-10 Chhattisgarh State Power Generation Company Ltd. O/O. Executive Director-Finance Ground Floor, Vidyut Seva Bhawan, Daganiya, Raipur-492 001 (C.G.) Pan : Aadcc5772F .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax, Circle-1(2), Raipur (C.G.) ……""यथ" / Respondent आयकर अपील सं. / Ita No.24/Rpr/2022 "नधा"रण वष" / Assessment Year : 2018-19 Chhattisgarh State Power Generation Company Ltd. Ground Floor, Vidyut Seva Bhawan, Daganiya, Raipur-492 001 (C.G.) Pan : Aadcc5772F .......अपीलाथ" / Appellant बनाम / V/S.

For Appellant: Shri R.B Doshi, CAFor Respondent: Shri V.K Singh, CIT-DR
Section 143(2)Section 143(3)Section 32

…al no. 4 relates to addition of Rs. 19,98,021/- on account of remission and cessation of liability. The Assessing Officer relied on the judgment of CIT Vs. Sundaram lyengar and 15 Chhattisgarh State Power Generation Company Ltd. ITA No.24/RPR/2022 Sons Ltd, 222 ITR 344 and held that as the cheque had become stale and the parties have not encashed the same, therefore, they are not payable and, hence, shall be treated as income of the assessee. The CIT(A) accepted the contention of the assessee, that as the liability is still standing in the balance sheet, therefore, it cannot be assumed that it had ceased to exi…

Dy. Commissioner of Income Tax, Central Circle-1(2), Hyderabad vs. Amrut Prasad Patnam, Hyderabad

In the result, all the four appeals filed by the assessee as well as the only appeal filed by the Revenue are allowed for statistical purposes

ITA 1894/HYD/2018[2010-11]Status: DisposedITAT Hyderabad25 May 2023AY 2010-11

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri K.C. Devdas, CAFor Respondent: Shri Jeevan Lal Lavidiya, CIT(DR)
Section 132Section 143(1)Section 143(2)Section 153ASection 68

…d on settlement and that income must be recognized in the period during which settlement took place. 6.19 In this connection, it is pertinent to refer to the decision of the Hon'ble Supreme Court in the case of CIT V. T.V. Sundaram Iyengar & Sons Ltd. (1996) 222 ITR 344 (SC) wherein the Hon’ble Supreme Court has laid down that: "If the amount is received in the course of trading transactions, even though it is not taxable in the year of receipt as being of capital character, the amount changes its character when the amount becomes the assessees own money because of limitation or by any other statutory Page 24 o…

P Amruth Prasad, Hyderabad vs. Dy. Commissioner of Income Tax, Central Circle-1(2), Hyderabad

In the result, all the four appeals filed by the assessee as well as the only appeal filed by the Revenue are allowed for statistical purposes

ITA 1707/HYD/2018[2010-11]Status: DisposedITAT Hyderabad25 May 2023AY 2010-11

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri K.C. Devdas, CAFor Respondent: Shri Jeevan Lal Lavidiya, CIT(DR)
Section 132Section 143(1)Section 143(2)Section 153ASection 68

…d on settlement and that income must be recognized in the period during which settlement took place. 6.19 In this connection, it is pertinent to refer to the decision of the Hon'ble Supreme Court in the case of CIT V. T.V. Sundaram Iyengar & Sons Ltd. (1996) 222 ITR 344 (SC) wherein the Hon’ble Supreme Court has laid down that: "If the amount is received in the course of trading transactions, even though it is not taxable in the year of receipt as being of capital character, the amount changes its character when the amount becomes the assessees own money because of limitation or by any other statutory Page 24 o…

P Amrutha Prasad, Hyderabad vs. Dy. Commissioner of Income Tax, Central Circle-1(2), Hyderabad

In the result, all the four appeals filed by the assessee as well as the only appeal filed by the Revenue are allowed for statistical purposes

ITA 1706/HYD/2018[2009-10]Status: DisposedITAT Hyderabad25 May 2023AY 2009-10

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri K.C. Devdas, CAFor Respondent: Shri Jeevan Lal Lavidiya, CIT(DR)
Section 132Section 143(1)Section 143(2)Section 153ASection 68

…d on settlement and that income must be recognized in the period during which settlement took place. 6.19 In this connection, it is pertinent to refer to the decision of the Hon'ble Supreme Court in the case of CIT V. T.V. Sundaram Iyengar & Sons Ltd. (1996) 222 ITR 344 (SC) wherein the Hon’ble Supreme Court has laid down that: "If the amount is received in the course of trading transactions, even though it is not taxable in the year of receipt as being of capital character, the amount changes its character when the amount becomes the assessees own money because of limitation or by any other statutory Page 24 o…

Srinivas Uppu, Secunderabad vs. Dy. Commissioner of Income Tax, Central Circle-1(2), Hyderabad

In the result, all the four appeals filed by the assessee as well as the only appeal filed by the Revenue are allowed for statistical purposes

ITA 1705/HYD/2018[2010-11]Status: DisposedITAT Hyderabad25 May 2023AY 2010-11

Bench: Shri R.K. Panda & Shri Laliet Kumar

For Appellant: Shri K.C. Devdas, CAFor Respondent: Shri Jeevan Lal Lavidiya, CIT(DR)
Section 132Section 143(1)Section 143(2)Section 153ASection 68

…d on settlement and that income must be recognized in the period during which settlement took place. 6.19 In this connection, it is pertinent to refer to the decision of the Hon'ble Supreme Court in the case of CIT V. T.V. Sundaram Iyengar & Sons Ltd. (1996) 222 ITR 344 (SC) wherein the Hon’ble Supreme Court has laid down that: "If the amount is received in the course of trading transactions, even though it is not taxable in the year of receipt as being of capital character, the amount changes its character when the amount becomes the assessees own money because of limitation or by any other statutory Page 24 o…