Godhra Electricity Co. Ltd. v. CIT

225 ITR 746Supreme Court of India1997#130 most cited

What is Godhra Electricity Co. Ltd. v. CIT authority for?

The principle of real income dictates that only actual income, and not hypothetical or notional income, is subject to taxation under the Income-tax Act. Income that has not genuinely accrued or been received cannot be brought to tax merely on an assumption.

511

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2009 to 2026.

Also referred to as

Godhra Electricity Co. Ltd. v. CIT · 225 ITR 746 · real income doctrine · hypothetical income · notional income · accrual of income · imputed interest · taxability of income · Section 4 · income tax principle · actual income · assessment of income

Sections most often in play

Section 143(3)Section 147Section 148Section 14ASection 40A(3)Section 37(1)Section 142(2A)Section 153A

Issues it is cited on

section 10(31a)section 100section 76undisclosed foreign income and assetssection 142(2c)section 149(1)(c)section 4(2)section 153b(1)(b)section 201(3)section 158basection 153b(1)rectification under section 154

Judgments citing Godhra Electricity Co. Ltd. v. CIT

M/S. THDC INDIA LIMITED,RISHIKESH vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, DEHRADUN

In the result, appeal of the assessee is allowed

ITA 31/DDN/2022[2017-18]Status: DisposedITAT Dehradun18 Feb 2026AY 2017-18

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal[Through Virtual Mode] [Assessment Year : 2017-18] M/S. Thdc India Ltd. Vs Pcit Ganga Bhawan, Aaykar Bhawan, Pragatipuram, Bye Pass 13 A, Subhash Road, Road, Rishikesh, Uttarakhand Uttarakhand-249201 Pan-Aaact7905Q Appellant Respondent Assessee By Shri Jeetan Nagpal, Ca Shri Sanjay Arora, Ca & Ms. Pallavi, Ca Revenue By Ms. Poonam Sharma, Cit Dr Date Of Hearing 08.12.2025 Date Of Pronouncement 18.02.2026 Order Per Manish Agarwal, Am : The Present Appeal Is Filed By The Assessee Against The Order Dated 27.03.2022 By Ld. Pr. Commissioner Of Income Tax, Dehradun [“Ld. Pcit”] Passed U/S 263 Of The Income Tax Act, 1961 [“The Act”] Arising From The Assessment Order Dated 30.12.2019 Passed U/S 143(3) Of The Act Pertaining To Assessment Year 2017-18. 2. Brief Facts Of The Case Are That The Assessee Is A Joint Venture Company Of Government Of India & Government Of Uttar Pradesh & Engaged In The Business Of Generation & Supply Of Hydro- Electric As Well As Wind Power & Also Engaged In Construction Of Hydro Power Plants. The Return Of Income Was Filed On 30.10.2017, Declaring Total Income Of Inr 6,84,04,420/- After Claiming Deduction U/S 80-Ia Of The Act Of Inr 948,40,76,282/-. The Book Profits Was Shown At Inr 7,84,96,09,382/- & Mat Of Inr 1,67,52,32,236/- Was Paid. The Case Of The Assessee Was Selected For Scrutiny & After Considering The Submissions Made, Total Income Was Assessed At Inr 4,63,78,80,698/- By Making Disallowance Out Of Deduction Claimed U/S 80-Ia Of The Act To The Extent Of Inr 211,15,54,378/- & Further Making Addition Of Inr 245,79,21,900/- On Account Of Late Payment Surcharge On Outstanding Debtors For The Period Of 10 Months Holding The Same As Taxable On Accrual Basis & No Deduction U/S 80Ia Was Allowed On Such Addition.

Section 143(3)Section 263Section 80Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN “DB” BENCH: DEHRADUN BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [THROUGH VIRTUAL MODE] [Assessment Year : 2017-18] M/s. THDC India Ltd. vs PCIT Ganga Bhawan, Aaykar Bhawan, Pragatipuram, Bye Pass 13 A, Subhash Road, Road, Rishikesh, Uttarakhand Uttarakhand-249201 PAN-AAACT7905Q APPELLANT RESPONDENT Assessee by Shri Jeetan Nagpal, CA Shri Sanjay Arora, CA & Ms. Pallavi, CA Revenue by Ms. Poonam Sharma, CIT DR Date of Hearing 08.12.2025 Date of Pronouncement 18.02.2026 ORDER PER MANISH AGARWAL, AM : The present appeal is fil…

MAHARASHTRA STATE ELECTRICITY TRANSMISSION COMPANY LIMITED,MUMBAI vs. ITO CIRCLE 14(1)(1), MUMBAI

ITA 2552/MUM/2025[2016-17]Status: DisposedITAT Mumbai06 Feb 2026AY 2016-17

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Madhao VichoreFor Respondent: Shri Solgy Jose
Section 143(3)Section 14A

…dit Co., CIT vs. Kewal Chand Bagri – Calcutta High Court 1990-53 Taxman536 to the similar effect. 7. On the facts and circumstances of the case and law, the CIT(A) erred in not properly applying the law laid by the Apex Court in CIT vs. Godhra Electricity Co. 225 ITR 746 SC and Andhra Bank case as reported in 225 ITR 447.SC which held that if income by following book keeping methods, the liability to tax cannot be attracted. 8. On the facts and circumstances of the case and law, the Learned CIT(A) erred in holding that the appellant has not satisfactorily substantiated its ground against the addition made by the…

JCIT(OSD)-14(1)(1), MUMBAI vs. MAHARASHTRA STATE ELECTRICITY TRANSMISSION CO. LTD., MUMBAI

ITA 2093/MUM/2025[2016-17]Status: DisposedITAT Mumbai06 Feb 2026AY 2016-17

Bench: SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri Madhao VichoreFor Respondent: Shri Solgy Jose
Section 143(3)Section 14A

…dit Co., CIT vs. Kewal Chand Bagri – Calcutta High Court 1990-53 Taxman536 to the similar effect. 7. On the facts and circumstances of the case and law, the CIT(A) erred in not properly applying the law laid by the Apex Court in CIT vs. Godhra Electricity Co. 225 ITR 746 SC and Andhra Bank case as reported in 225 ITR 447.SC which held that if income by following book keeping methods, the liability to tax cannot be attracted. 8. On the facts and circumstances of the case and law, the Learned CIT(A) erred in holding that the appellant has not satisfactorily substantiated its ground against the addition made by the…

M/S JINDAL EQUIPMENT LEASING CONSULTANCY SERVICES LTD. vs. COMMISSIONER OF INCOME TAX

Appeals stand disposed of in the aforesaid terms

C.A. No.-000152-000152 - 2026Supreme Court09 Jan 2026

Bench: HON'BLE MR. JUSTICE R. MAHADEVAN

Section 143(3)Section 28Section 47

…such shares are held as stock-in-trade, does not constitute a “sale” or “exchange” giving rise to taxable business income. Any benefit is, at best, hypothetical until the shares are actually sold. The impugned judgment of the High Court, which 15 (1997) 225 ITR 746 (SC) 16 (2013) 358 ITR 295 (SC) 11 disregards settled principles and binding precedents, is erroneous and liable to be set aside. 5. On the other hand, the learned Additional Solicitor General appearing for the respondent(s) – Department opposed the present appeals and supported the impugned judgment of the High Court. It was su…

DCIT CENTRAL CIRCLE-01, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORPORATION LTD. , KOLKATA

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

ITA 5793/DEL/2019[2016-17]Status: DisposedITAT Delhi23 Dec 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

ACIT, CENTRAL CIRCLE- 1, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORPORATION, KOLKATA

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

ITA 2369/DEL/2018[2015-16]Status: DisposedITAT Delhi23 Dec 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA COMMERCIAL CORP. LTD.,KOLKATA vs. ACIT, CC- 1, NEW DELHI

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

ITA 1893/DEL/2018[2015-16]Status: DisposedITAT Delhi23 Dec 2025AY 2015-16

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

ACIT, CC- 1, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORP. LTD., KOLKATA

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

ITA 5534/DEL/2017[2014-15]Status: DisposedITAT Delhi23 Dec 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

ACIT, CC- 1, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORP. LTD., KOLKATA

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

ITA 5505/DEL/2017[2013-2014]Status: DisposedITAT Delhi23 Dec 2025AY 2013-2014

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

ACIT, CC- 1, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORP. LTD., KOLKATA

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

ITA 5504/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Dec 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

ACIT, CENTRAL CIRCLE-1, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORP. LTD, LUCKNOW

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

ITA 4855/DEL/2017[2010-11]Status: DisposedITAT Delhi23 Dec 2025AY 2010-11

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA COMMERCIAL CORP. LTD.,KOLKATA vs. ACIT, CC- 1, NEW DELHI

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

ITA 4731/DEL/2017[2014-15]Status: DisposedITAT Delhi23 Dec 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA COMMERCIAL CORP. LTD.,KOLKATA vs. ACIT, CC- 1, NEW DELHI

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

ITA 4730/DEL/2017[2013-14]Status: DisposedITAT Delhi23 Dec 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA COMMERCIAL CORP. LTD.,KOLKATA vs. ACIT, CC- 1, NEW DELHI

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

ITA 4729/DEL/2017[2012-13]Status: DisposedITAT Delhi23 Dec 2025AY 2012-13

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA COMMERCIAL CORP. LTD.,KOLKATA vs. ACIT, CC- 1, NEW DELHI

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

ITA 4728/DEL/2017[2010-11]Status: DisposedITAT Delhi23 Dec 2025AY 2010-11

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA COMMERCIAL CORPN. LTD.,KOLKATA vs. ACIT, NEW DELHI

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

ITA 2795/DEL/2017[2011-12]Status: DisposedITAT Delhi23 Dec 2025AY 2011-12

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

DCIT, NEW DELHI vs. M/S. SAHARA INDIA COMMERCIAL CORPORATION LTD., KOLKATA

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

ITA 2620/DEL/2013[2009-10]Status: DisposedITAT Delhi23 Dec 2025AY 2009-10

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

SAHARA INDIA,KOLKATA vs. DCIT, NEW DELHI

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

ITA 1977/DEL/2013[2009-10]Status: DisposedITAT Delhi23 Dec 2025AY 2009-10

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142

…aken place in the hands of the assessee. Further, to buttress the submissions that only real income and not hypothetical income can be taxed in the hands of the assessee reliance was placed on following decisions: (i) Godhra Electricity Company Ltd. vs. CIT, 225 ITR 746 (SC); & (ii) CIT vs. Excel Industries Ltd., 385 ITR 295 (SC). 70.1. A perusal of the impugned order shows that the AO and the CIT(A) have made addition of Rs.94,83,439/- by imputing interest @12% per annum in respect of outstanding loans from Neha International Ltd. and M/s. Royal Refinery. The CIT(A) in para 8.10 of the impugned order has record…

DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(1), KOLKATA, KOLKATA vs. AXIS OVERSEAS LIMITED, KOLKATA

In the result, the appeal of the Revenue is dismissed

ITA 2425/KOL/2024[2013-14]Status: DisposedITAT Kolkata03 Dec 2025AY 2013-14

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm Dy. Commissioner Of Income Tax, Cc 1(1), Kolkata Axis Overseas Limited Aaykar Bhawan Poorva, 21A, Shakespeare Sarani, Vs. 3Rd Floor, Kolkata-700107, Kolkata-700107, West Bengal West Bengal (Appellant) (Respondent) Pan No. Aagca7497L Assessee By : Shri Siddharth Agarwal, Ar Revenue By : Shri P.N. Barnwal, Dr Date Of Hearing: 13.11.2025 Date Of Pronouncement: 03.12.2025

For Appellant: Shri Siddharth Agarwal, ARFor Respondent: Shri P.N. Barnwal, DR
Section 133(6)Section 68

…ic Supply v. Ld. CIT(Appeals) (1965) 57 ITR 21 (SC) held that “income-tax is a tax on the real income, i.e., the profits arrived at on commercial principles subject to the provisions of the Income-tax Act”. Supreme Court in Godhra Electricity Co. Ltd. V. CIT (225 ITR 746 (SC) laid down this ratio and held that under the Income Tax Act, the income chargeable to tax should be the income that was received or was deemed to be received and the computation of such income is to be made in accordance with method of accounting regularly employed by the appellant. Further, if income does not result at all, there cannot be…

INCOME TAX OFFICER, PARWANOO vs. JOGINDRA CENTRAL CO-OPERATIVE BANK LTD., VILLAGE-RAJGARH ROAD

In the result, the appeal of the Revenue is dismissed

ITA 120/CHANDI/2024[2017-18]Status: DisposedITAT Chandigarh15 Oct 2025AY 2017-18

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Parveen Sharma, Advocate (Virtual)For Respondent: Shri Manav Bansal, CIT, DR
Section 143(3)Section 43D

…. He emphasized that the doctrine of “real income” governs such cases and that notional accrual of interest, when 3 recovery is uncertain or doubtful, cannot be subjected to tax. He placed reliance on UCO Bank v. CIT (237 ITR 889 SC), Godhra Electricity Co. (225 ITR 746 SC), and Vasisth Chay Vyapar Ltd. (330 ITR 440 Del). 8. We have carefully considered the rival submissions and perused the record. It is an admitted position that the assessee is a co-operative bank governed by the Reserve Bank of India’s Master Circular on Prudential Norms for Income Recognition and Asset Classification, which mandates that inte…

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Godhra Electricity Co. Ltd. v. CIT (225 ITR 746) — Cited in 511 Judgments | BharatTax