CIT v. Virtual Soft Systems Ltd.

404 ITR 409Supreme Court of India2018#1631 most cited

What is CIT v. Virtual Soft Systems Ltd. authority for?

The method of accounting followed by an assessee, especially when based on Accounting Standards and Guidance Notes issued by the ICAI, must be accepted for computing income under the Income Tax Act. This includes methods adopted for lease accounting and income recognition.

70

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Also referred to as

CIT v. Virtual Soft Systems Ltd. · 404 ITR 409 · Section 145(1) Income Tax Act · method of accounting · ICAI Accounting Standards · ICAI Guidance Notes · income recognition · lease accounting · computation of real income · acceptance of accounting method

Also reported as

92 Taxmann.com 370255 Taxmann 352

Sections most often in play

Section 1961Section 143(3)Section 250 of the Income Tax ActSection 147Section 132Section 153ASection 139(1)Section 250

Issues it is cited on

section 145(1)section 40a(i)section 9(i)section 275(1)(a)section 5(2)(b)section 23asection 145(2)retention moneysection 211section 28(iv)section 35dsection 115baa

Judgments citing CIT v. Virtual Soft Systems Ltd.

AXIS BANK LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

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

ITA 1125/AHD/2025[2015-16]Status: DisposedITAT Ahmedabad16 Jan 2026AY 2015-16

Bench: Ms. Suchitra Raghunath Kamble & Shri Narendra Prasad Sinha

Section 143(3)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA Nos. 1121,1122,1123,1124 & 1125/AHD/2025 Assessment Years: 2011-12,2012-13,2013-14,2014-15 & 2015-16 Axis Bank Limited, Assistant Commissioner of Trishul, 3rd Floor Opp. Income Tax, Circle 1(1)(1), Samtheshwar Mahadev Near Ahmedabad - 380015 Law Garden, Ellisbridge, Vs. Ahmedabad – 380006 [PAN –AAACU2414K] (Appellant) (Respondent) Assessee by Shri Tushar Hemani, Sr. Advocate & Shri Kushal Fofaria, ARs Revenue by Shri Sher Singh, CIT. DR Date of He…

AXIS BANK LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

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

ITA 1124/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad16 Jan 2026AY 2014-15

Bench: Ms. Suchitra Raghunath Kamble & Shri Narendra Prasad Sinha

Section 143(3)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA Nos. 1121,1122,1123,1124 & 1125/AHD/2025 Assessment Years: 2011-12,2012-13,2013-14,2014-15 & 2015-16 Axis Bank Limited, Assistant Commissioner of Trishul, 3rd Floor Opp. Income Tax, Circle 1(1)(1), Samtheshwar Mahadev Near Ahmedabad - 380015 Law Garden, Ellisbridge, Vs. Ahmedabad – 380006 [PAN –AAACU2414K] (Appellant) (Respondent) Assessee by Shri Tushar Hemani, Sr. Advocate & Shri Kushal Fofaria, ARs Revenue by Shri Sher Singh, CIT. DR Date of He…

AXIS BANK LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

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

ITA 1123/AHD/2025[2013-14]Status: DisposedITAT Ahmedabad16 Jan 2026AY 2013-14

Bench: Ms. Suchitra Raghunath Kamble & Shri Narendra Prasad Sinha

Section 143(3)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA Nos. 1121,1122,1123,1124 & 1125/AHD/2025 Assessment Years: 2011-12,2012-13,2013-14,2014-15 & 2015-16 Axis Bank Limited, Assistant Commissioner of Trishul, 3rd Floor Opp. Income Tax, Circle 1(1)(1), Samtheshwar Mahadev Near Ahmedabad - 380015 Law Garden, Ellisbridge, Vs. Ahmedabad – 380006 [PAN –AAACU2414K] (Appellant) (Respondent) Assessee by Shri Tushar Hemani, Sr. Advocate & Shri Kushal Fofaria, ARs Revenue by Shri Sher Singh, CIT. DR Date of He…

AXIS BANK LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

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

ITA 1122/AHD/2025[2012-13]Status: DisposedITAT Ahmedabad16 Jan 2026AY 2012-13

Bench: Ms. Suchitra Raghunath Kamble & Shri Narendra Prasad Sinha

Section 143(3)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA Nos. 1121,1122,1123,1124 & 1125/AHD/2025 Assessment Years: 2011-12,2012-13,2013-14,2014-15 & 2015-16 Axis Bank Limited, Assistant Commissioner of Trishul, 3rd Floor Opp. Income Tax, Circle 1(1)(1), Samtheshwar Mahadev Near Ahmedabad - 380015 Law Garden, Ellisbridge, Vs. Ahmedabad – 380006 [PAN –AAACU2414K] (Appellant) (Respondent) Assessee by Shri Tushar Hemani, Sr. Advocate & Shri Kushal Fofaria, ARs Revenue by Shri Sher Singh, CIT. DR Date of He…

AXIS BANK LIMITED,AHMEDABAD vs. THE ACIT, CIRCLE-1(1)(1), AHMEDABAD

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

ITA 1121/AHD/2025[2011-12]Status: DisposedITAT Ahmedabad16 Jan 2026AY 2011-12

Bench: Ms. Suchitra Raghunath Kamble & Shri Narendra Prasad Sinha

Section 143(3)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE MS. SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER ITA Nos. 1121,1122,1123,1124 & 1125/AHD/2025 Assessment Years: 2011-12,2012-13,2013-14,2014-15 & 2015-16 Axis Bank Limited, Assistant Commissioner of Trishul, 3rd Floor Opp. Income Tax, Circle 1(1)(1), Samtheshwar Mahadev Near Ahmedabad - 380015 Law Garden, Ellisbridge, Vs. Ahmedabad – 380006 [PAN –AAACU2414K] (Appellant) (Respondent) Assessee by Shri Tushar Hemani, Sr. Advocate & Shri Kushal Fofaria, ARs Revenue by Shri Sher Singh, CIT. DR Date of He…

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VAPI vs. GUJARAT POLYSOL CHEMICALS LIMITED, VAPI

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

ITA 66/SRT/2025[2022-23]Status: DisposedITAT Surat26 Nov 2025AY 2022-23

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Om Prakash Kant & & Assistant Commissioner Of Vs. Gujarat Polysol Income Tax Chemicals Limited 9Th Floor, Fortune Square Ii, 1, Plot No. 1734, 3Rd Daman Road, Chala, Vapi Phase, Gidc, Vapi, 396191 Gujarat 396195 Pan/Gir No. Aaacg8908Q (Applicant) (Respondent)

Section 250

…A-II)] dated 30.03.2011, wherein CBDT directed to obtain the report of technical expert in case of complex issues, decision of Hon'ble Apex Court in the case of CIT vs. Virtual Soft Systems Ltd. [2018] 92 taxmann.com 370 (SC)/[2018] 255 Taxman 352 (SC)/[2018] 404 ITR 409 (SC)/[2018] 302 CTR 65 (SC) [24- 04[2018]; CIT vs. Emptee Poly-Yarn (P.) Ltd. [2010] 188 Taxman 188 (SC)/[2010] 320 ITR 665 (SC)/[2010] 229 CTR 1 (SC)[20-01- 2010) and in the case of PCIT (Inv.) & Ors. Vs. Laljibhai Kanjibhai Mandalia 2022 IETL 1944: (2022) 446 ITR 18: (2022) 327 CTR 353: (2022) 215 DTR 417: (2022) 288 Taxman 361. 11. On merit of…

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VAPI vs. GUJARAT POLYSOL CHEMICALS LIMITED, VAPI

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

ITA 65/SRT/2025[2021-22]Status: DisposedITAT Surat26 Nov 2025AY 2021-22

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Om Prakash Kant & & Assistant Commissioner Of Vs. Gujarat Polysol Income Tax Chemicals Limited 9Th Floor, Fortune Square Ii, 1, Plot No. 1734, 3Rd Daman Road, Chala, Vapi Phase, Gidc, Vapi, 396191 Gujarat 396195 Pan/Gir No. Aaacg8908Q (Applicant) (Respondent)

Section 250

…A-II)] dated 30.03.2011, wherein CBDT directed to obtain the report of technical expert in case of complex issues, decision of Hon'ble Apex Court in the case of CIT vs. Virtual Soft Systems Ltd. [2018] 92 taxmann.com 370 (SC)/[2018] 255 Taxman 352 (SC)/[2018] 404 ITR 409 (SC)/[2018] 302 CTR 65 (SC) [24- 04[2018]; CIT vs. Emptee Poly-Yarn (P.) Ltd. [2010] 188 Taxman 188 (SC)/[2010] 320 ITR 665 (SC)/[2010] 229 CTR 1 (SC)[20-01- 2010) and in the case of PCIT (Inv.) & Ors. Vs. Laljibhai Kanjibhai Mandalia 2022 IETL 1944: (2022) 446 ITR 18: (2022) 327 CTR 353: (2022) 215 DTR 417: (2022) 288 Taxman 361. 11. On merit of…

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VAPI vs. GUJARAT POLYSOL CHEMICALS LIMITED, VAPI

In the result, the appeal of assessee is partly allowed

ITA 64/SRT/2025[2019-20]Status: DisposedITAT Surat26 Nov 2025AY 2019-20

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Om Prakash Kant

Section 250

…A-II)] dated 30.03.2011, wherein CBDT directed to obtain the report of technical expert in case of complex issues, decision of Hon'ble Apex Court in the case of CIT vs. Virtual Soft Systems Ltd. [2018] 92 taxmann.com 370 (SC)/[2018] 255 Тахтап 352 (SC)/[2018] 404 ITR 409 (SC)/[2018] 302 CTR 65 (SC) [24- 04[2018]; CIT vs. Emptee Poly-Yarn (P.) Ltd. [2010] 188 Τахтап 188 (SC)/[2010] 320 ITR 665 (SC)/[2010] 229 CTR 1 (SC)[20-01- 2010) and in the case of PCIT (Inv.) & Ors. Vs. Laljibhai Kanjibhai Mandalia 2022 IETL 1944: (2022) 446 ITR 18: (2022) 327 CTR 353: (2022) 215 DTR 417: (2022) 288 Тахтап 361. 11. On merit of…

DCIT, CIRCLE-7(1), DELHI vs. DLF LIMITED, DELHI

In the result, appeal of the Revenue is dismissed

ITA 715/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…method was allowed while computing business income under the Act. a) In the case of CIT V. Virtual Soft Systems Limited [2012] 18 taxmann.com 119/205 Taxman 257/341 ITR 593 [Delhi HC] (affirmed by Supreme Court in the case of CIT vs. Virtual Soft Systems Ltd: 404 ITR 409 (SC)), (refer Page 284-296 of Paper Book Vol-2) method of accounting for lease followed by assessee on the basis of guidelines of ICAI was accepted. The relevant extracts of the decision are reproduced as under: “8.1 The foremost aspect which, thus arises for consideration in this case is: whether the method of accounting employed by the assessee…

DCIT, CIRCLE-7(1), DELHI vs. DLF LIMITED, DELHI

In the result, appeal of the Revenue is dismissed

ITA 714/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…method was allowed while computing business income under the Act. a) In the case of CIT V. Virtual Soft Systems Limited [2012] 18 taxmann.com 119/205 Taxman 257/341 ITR 593 [Delhi HC] (affirmed by Supreme Court in the case of CIT vs. Virtual Soft Systems Ltd: 404 ITR 409 (SC)), (refer Page 284-296 of Paper Book Vol-2) method of accounting for lease followed by assessee on the basis of guidelines of ICAI was accepted. The relevant extracts of the decision are reproduced as under: “8.1 The foremost aspect which, thus arises for consideration in this case is: whether the method of accounting employed by the assessee…

DCIT, CIRCLE-7(1), DELHI vs. DLF LIMITED, DELHI

In the result, appeal of the Revenue is dismissed

ITA 713/DEL/2024[2019-20]Status: DisposedITAT Delhi30 Oct 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…method was allowed while computing business income under the Act. a) In the case of CIT V. Virtual Soft Systems Limited [2012] 18 taxmann.com 119/205 Taxman 257/341 ITR 593 [Delhi HC] (affirmed by Supreme Court in the case of CIT vs. Virtual Soft Systems Ltd: 404 ITR 409 (SC)), (refer Page 284-296 of Paper Book Vol-2) method of accounting for lease followed by assessee on the basis of guidelines of ICAI was accepted. The relevant extracts of the decision are reproduced as under: “8.1 The foremost aspect which, thus arises for consideration in this case is: whether the method of accounting employed by the assessee…

DLF LIMITED,DELHI vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

In the result, appeal of the Revenue is dismissed

ITA 677/DEL/2024[2021-22]Status: DisposedITAT Delhi30 Oct 2025AY 2021-22

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…method was allowed while computing business income under the Act. a) In the case of CIT V. Virtual Soft Systems Limited [2012] 18 taxmann.com 119/205 Taxman 257/341 ITR 593 [Delhi HC] (affirmed by Supreme Court in the case of CIT vs. Virtual Soft Systems Ltd: 404 ITR 409 (SC)), (refer Page 284-296 of Paper Book Vol-2) method of accounting for lease followed by assessee on the basis of guidelines of ICAI was accepted. The relevant extracts of the decision are reproduced as under: “8.1 The foremost aspect which, thus arises for consideration in this case is: whether the method of accounting employed by the assessee…

DLF LIMITED,DELHI vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

In the result, appeal of the Revenue is dismissed

ITA 676/DEL/2024[2020-21]Status: DisposedITAT Delhi30 Oct 2025AY 2020-21

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 14A

…method was allowed while computing business income under the Act. a) In the case of CIT V. Virtual Soft Systems Limited [2012] 18 taxmann.com 119/205 Taxman 257/341 ITR 593 [Delhi HC] (affirmed by Supreme Court in the case of CIT vs. Virtual Soft Systems Ltd: 404 ITR 409 (SC)), (refer Page 284-296 of Paper Book Vol-2) method of accounting for lease followed by assessee on the basis of guidelines of ICAI was accepted. The relevant extracts of the decision are reproduced as under: “8.1 The foremost aspect which, thus arises for consideration in this case is: whether the method of accounting employed by the assessee…

ACIT, CIR-1(1), RAJKOT, RAJKOT vs. SHRI RAJKOT DISTRICT CO OPERATIVE BANK LTD, RAJKOT

The appeal of the revenue is dismissed

ITA 188/RJT/2024[2015-16]Status: DisposedITAT Rajkot05 Aug 2025AY 2015-16

Bench: Dr. Arjun Lal Saini. & Shri Dinesh Mohan Sinhaआयकरअपीलसं./Ita No.188/Rjt/2024 िनधा"रणवष"/ Assessment Year: (2015-16) (Hybrid Hearing) Assistant Commissioner Of Income- Vs. Rajkot District Co-Operative Bank Tax, Circle-1 (1), Rajkot Limited Room No.502, Aayakar Bhawan, Jilla Bankbhavan, Kasturba Road, Race Course Ring Road, Rajkot- Opp: Chaudhary High School, 360001 Rajkot 360001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaaar0564K (Appellant) (Respondent) Appellant By : Shri D. M. Rindani, Ld. Ar Respondent By : Shri Abhimanyu Singh Yadav, Ld.Sr.Dr : 09/06 /2025 Date Of Hearing Date Of Pronouncement : 05/08 /2025

For Appellant: Shri D. M. Rindani, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld.Sr.DR
Section 143(3)Section 36(1)Section 36(1)(viii)

…IN THE INCOME TAX APPELLATE TRIBUNAL,RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER. & SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No.188/RJT/2024 िनधा"रणवष"/ Assessment Year: (2015-16) (Hybrid Hearing) Assistant Commissioner of Income- Vs. Rajkot District Co-Operative Bank tax, Circle-1 (1), Rajkot Limited Room No.502, Aayakar Bhawan, Jilla Bankbhavan, Kasturba Road, Race Course Ring Road, Rajkot- Opp: Chaudhary High School, 360001 Rajkot 360001 "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAAAR0564K (Appellant) (Respondent) Appellant by : Shri D. M. Rindani, Ld. AR Respondent by : Shri…

M/S. EXPERION DEVELOPERS PVT. LTD.,GURGAON vs. ACIT, NEW DELHI

In the result, the appeal of the assessee is allowed

ITA 1367/DEL/2017[2012-13]Status: DisposedITAT Delhi31 Jul 2025AY 2012-13

Bench: Shri C. N. Prasad & Shri M. Balaganeshm/S Experion Developers Pvt. Ltd, Vs. Acit, First Floor, Block B, Sushant Lok Circle-8(2), I, M. G. Road, Gurgaon-12202, New Delhi Haryana (Appellant) (Respondent) Pan: Aaccg8138L

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 143(3)

…idance Notes issued by ICAI and utilization of the same for the purpose of recognition of income under the Income Tax Act has been subject matter of due consideration by the Hon’ble Supreme Court in the case of Virtual Soft Systems Limited vs ACIT reported in 404 ITR 409 (SC) wherein the Hon’ble Apex Court had duly given due credence to the M/s Experion Developers Pvt. Ltd Accounting Standards and Guidance Notes issued by ICAI. It is well settled that earning of revenue is not a condition precedent for deduction of expenditure under section 37 of the Act. What is required to be seen is whether the business is se…

DLF HOME DEVELOPERS LIMITED,NEW DELHI vs. PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI-1, NEW DELHI, NEW DELHI

In the result, the appeal of the assessee is allowed

ITA 2585/DEL/2024[2019-20]Status: DisposedITAT Delhi23 May 2025AY 2019-20

Bench: Shri Mahavir Singh & Shri Manish Agarwal[Assessment Year : 2019-20] Dlf Home Developers Limited, Vs Pr.Cit, 9Th Floor, Dlf Centre, Sansad Delhi-1, Marg, New Delhi-110001. New Delhi Pan-Aaccd0037H Appellant Respondent Appellant By Shri R.S.Singhvi, Ca & Shri Satyajeet Goel, Ca Respondent By Shri Surender Pal, Cit Dr Date Of Hearing 19.03.2025 Date Of Pronouncement 23.05.2025

Section 143(3)Section 263

…rds Board (ICAI), the PCIT was not justified in tinkering with the method. It is relevant to state that the authority of accounting standards having been approved and accepted by the Hon'ble Supreme Court in the case of CIT v. Virtual Soft Systems Ltd. [2018] 404 ITR 409 (SC), the direction of PCIT is perverse and unjustified. In fact, Apex Court in the case of Bilahari Investment 299 ITR 1 has duly examined the applicability of POCM and CCM method and confirmed both the methods. Even otherwise, the whole exercise is revenue neutral as the direction of PCIT would merely result in preponement of the revenue from i…

THE GOOD SHEPHERD EDUCATION SOCIETY ,BENGALURU vs. ITO, EXEMPTIONS WARD-2, BENGALURU

In the result, appeal filed by the assessee is allowed for statistical purpose

ITA 128/BANG/2025[2018-19]Status: DisposedITAT Bangalore25 Apr 2025AY 2018-19

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubeyassessment Year : 2018-19

For Appellant: Shri. Gokul, AdvocateFor Respondent: Shri. Subramanian S, JCIT(DR)(ITAT), Bangalore
Section 249

…Co. Ltd v. CIT [1997] 225 ITR 746 (SC) c. Poona Electric Supply Co. Ltd v. CIT [1965] 56 ITR 521 (SC) d. CIT v. Chamanlal Mangaldas& Co. [1960] 39 ITR 8 (SC) e. CIT v Harivallabhadas Kalidas & Co. [1960] 39 ITR 1 (SC) f. CIT v Virtual Soft Systems Ltd. [2018] 404 ITR 409 (SC) Page 3 of 4 g. Miss Dhun Dadabhoy Kapadia v CIT [1967] 63 ITR 651 (SC) h. CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 (SC) 4. On the other hand, learned DR relied on the Order of the learned CIT(A) and submitted that assessee should have filed appeal within the stipulated time. The return was processed on 26.09.2019. Later hard copy was sen…

EDAVILANGU SERVICE CO-OPERATIVE BANK NO 3468,THRISSUR vs. ITO, WARD-2(1), THRISSUR

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 406/COCH/2024[AY 2020-2021]Status: DisposedITAT Cochin21 Feb 2025

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Smt. Leena Lal, Snr. ARFor Respondent: None
Section 2(1)Section 80Section 80PSection 80P(2)Section 80P(2)(a)

…not considered by the learned appellate authority. N. The Hon'ble Supreme court interpreted the Guidance Note issued by Institute of Chartered Accountants of India on Tax Audit under Section 44AB of the Income Tax Act in CIT Vs Virtual Soft Systems Ltd (2018) 404 ITR 409 and held that the Guidance Note issued by the ICAI carries great significance and the method of accounting prescribed in such a Guidance Note, in order to compute "real income" and offering the same for taxation, cannot be disregarded by the assessing officer. So, the computation of income in the assessment order itself is illegal and against law…

EDAVILANGU SERVICE CO-OPERATIVE BANK LTD NO 3468,THRISSUR vs. ITO, WARD-2(1), THRISSUR

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 405/COCH/2024[2017-2018]Status: DisposedITAT Cochin21 Feb 2025AY 2017-2018

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Smt. Leena Lal, Snr. ARFor Respondent: None
Section 2(1)Section 80Section 80PSection 80P(2)Section 80P(2)(a)

…not considered by the learned appellate authority. N. The Hon'ble Supreme court interpreted the Guidance Note issued by Institute of Chartered Accountants of India on Tax Audit under Section 44AB of the Income Tax Act in CIT Vs Virtual Soft Systems Ltd (2018) 404 ITR 409 and held that the Guidance Note issued by the ICAI carries great significance and the method of accounting prescribed in such a Guidance Note, in order to compute "real income" and offering the same for taxation, cannot be disregarded by the assessing officer. So, the computation of income in the assessment order itself is illegal and against law…

AJAY KUMAR,MUZAFFARNAGAR vs. INCOME TAX OFFICER, WARD-1(2), MUZAFFARNAGAR

In the result, the appeal of the assessee is allowed

ITA 1367/DEL/2024[2015-16]Status: DisposedITAT Delhi07 Jan 2025AY 2015-16

Bench: Shri C. N. Prasad & Shri M. Balaganeshm/S Experion Developers Pvt. Ltd, Vs. Acit, First Floor, Block B, Sushant Lok Circle-8(2), I, M. G. Road, Gurgaon-12202, New Delhi Haryana (Appellant) (Respondent) Pan: Aaccg8138L

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri Ajay Kumar Arora, Sr. DR
Section 143(3)

…idance Notes issued by ICAI and utilization of the same for the purpose of recognition of income under the Income Tax Act has been subject matter of due consideration by the Hon’ble Supreme Court in the case of Virtual Soft Systems Limited vs ACIT reported in 404 ITR 409 (SC) wherein the Hon’ble Apex Court had duly given due credence to the M/s Experion Developers Pvt. Ltd Accounting Standards and Guidance Notes issued by ICAI. It is well settled that earning of revenue is not a condition precedent for deduction of expenditure under section 37 of the Act. What is required to be seen is whether the business is se…

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