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?

Income is not taxable until it actually accrues or is received; hypothetical income, based on a mere claim not yet settled, is not chargeable to tax.

514

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2009 to 2026.

Also referred to as

Godhra Electricity Co. Ltd. v. CIT · income accrual · hypothetical income · actual receipt · unconfirmed claims · income tax

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

Gemological Institute of America Inc., Mumbai vs. Asst CIT (It) Circle- 2 (3)(2), Mumbai

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

ITA 7740/MUM/2019[2016-17]Status: DisposedITAT Mumbai30 Apr 2021AY 2016-17

…he real income of an assessee and not hypothetical and notional income. Reliance was placed on the decision of the Hon’ble Supreme Court in CIT vs. Bokaro Steel Ltd. (236 ITR 315) which refer to the decision in the case of Godhra Electricity Co. Ltd. vs. CIT (225 ITR 746). Reliance was also placed on the decision of the Bombay High Court in the case of H.M. Kashiparekh & Co. Ltd. Vs CIT (39 ITR 706) which has held that “the principle of real income is not to be so subordinated as to amount virtually to negation of it when a surrender or concession or rebate in respect of managing agency commission is made agreed…

Gemological Institute of America Inc., Mumbai vs. Asst CIT (It) Circle- 2 (3)(2), Mumbai

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

ITA 7739/MUM/2019[2015-16]Status: DisposedITAT Mumbai30 Apr 2021AY 2015-16

…he real income of an assessee and not hypothetical and notional income. Reliance was placed on the decision of the Hon’ble Supreme Court in CIT vs. Bokaro Steel Ltd. (236 ITR 315) which refer to the decision in the case of Godhra Electricity Co. Ltd. vs. CIT (225 ITR 746). Reliance was also placed on the decision of the Bombay High Court in the case of H.M. Kashiparekh & Co. Ltd. Vs CIT (39 ITR 706) which has held that “the principle of real income is not to be so subordinated as to amount virtually to negation of it when a surrender or concession or rebate in respect of managing agency commission is made agreed…

Gemological Institute of America Inc., Mumbai vs. DCIT(It) Cir. 2(3)(2), Mumbai

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

ITA 53/MUM/2019[2015-16]Status: DisposedITAT Mumbai30 Apr 2021AY 2015-16

…he real income of an assessee and not hypothetical and notional income. Reliance was placed on the decision of the Hon’ble Supreme Court in CIT vs. Bokaro Steel Ltd. (236 ITR 315) which refer to the decision in the case of Godhra Electricity Co. Ltd. vs. CIT (225 ITR 746). Reliance was also placed on the decision of the Bombay High Court in the case of H.M. Kashiparekh & Co. Ltd. Vs CIT (39 ITR 706) which has held that “the principle of real income is not to be so subordinated as to amount virtually to negation of it when a surrender or concession or rebate in respect of managing agency commission is made agreed…

Gemological Institute of America, Inc, Mumbai vs. DCIT (It) RG 2(3)(2), Mumbai

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

ITA 7174/MUM/2017[2013-14]Status: DisposedITAT Mumbai30 Apr 2021AY 2013-14

…he real income of an assessee and not hypothetical and notional income. Reliance was placed on the decision of the Hon’ble Supreme Court in CIT vs. Bokaro Steel Ltd. (236 ITR 315) which refer to the decision in the case of Godhra Electricity Co. Ltd. vs. CIT (225 ITR 746). Reliance was also placed on the decision of the Bombay High Court in the case of H.M. Kashiparekh & Co. Ltd. Vs CIT (39 ITR 706) which has held that “the principle of real income is not to be so subordinated as to amount virtually to negation of it when a surrender or concession or rebate in respect of managing agency commission is made agreed…

Gemological Institute of America, Inc, Mumbai vs. DCIT (It) RG 2(3)(2), Mumbai

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

ITA 1836/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 Apr 2021AY 2012-13

…he real income of an assessee and not hypothetical and notional income. Reliance was placed on the decision of the Hon’ble Supreme Court in CIT vs. Bokaro Steel Ltd. (236 ITR 315) which refer to the decision in the case of Godhra Electricity Co. Ltd. vs. CIT (225 ITR 746). Reliance was also placed on the decision of the Bombay High Court in the case of H.M. Kashiparekh & Co. Ltd. Vs CIT (39 ITR 706) which has held that “the principle of real income is not to be so subordinated as to amount virtually to negation of it when a surrender or concession or rebate in respect of managing agency commission is made agreed…

Gemological Institute of America Inc., Mumbai vs. DCIT (It) 2(3)(2), Mumbai

In the result, the appeal for the assessment year 2016-17 is also partly allowed in the terms indicated above

ITA 386/MUM/2016[2011-12]Status: DisposedITAT Mumbai30 Apr 2021AY 2011-12

…he real income of an assessee and not hypothetical and notional income. Reliance was placed on the decision of the Hon’ble Supreme Court in CIT vs. Bokaro Steel Ltd. (236 ITR 315) which refer to the decision in the case of Godhra Electricity Co. Ltd. vs. CIT (225 ITR 746). Reliance was also placed on the decision of the Bombay High Court in the case of H.M. Kashiparekh & Co. Ltd. Vs CIT (39 ITR 706) which has held that “the principle of real income is not to be so subordinated as to amount virtually to negation of it when a surrender or concession or rebate in respect of managing agency commission is made agreed…

Chennai Ennore Port Road Company Ltd., New Delhi vs. ACIT, Circle- 6(1), New Delhi

ITA 4074/DEL/2018[2013-14]Status: DisposedITAT Delhi11 Mar 2021AY 2013-14

Bench: Shri Prashant Maharishi & Shri K.Narasimha Chary

…ng but all actions undertaken in the execution of the project therefore, any income earned on that process would go to reduce the cost of the project. Hon’ble Court made a reference to the decision reported in Godhra electricity company limited vs. CIT (1997) 225 ITR 746 while reaching the said conclusions.In the case of Angul Sukinda Railway Limited vs ITO (supra), a coordinate Bench of this Tribunal, on similar facts, held that where the mobilization advance given to the contractor were for the purpose of the core business of the assessee and intrinsically connected with the capital expenditure of the assessee…

ACIT Ltu 2, Chennai vs. Nlc India Limited, Neyveli

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 952/CHNY/2018[2013-14]Status: DisposedITAT Chennai08 Feb 2021AY 2013-14

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…poned recognition of income even though said surcharge has been accounted in the books of accounts of the assessee on accrual basis. The assessee has taken support from the decision of Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., vs. CIT, 225 ITR 746 and argued that in the event of uncertainty of realization of income, the same even though accrued in the accounts, deserves to be excluded for the purpose of computation of taxable income. The assessee has taken support from the decision of the Hon‘ble Supreme Court in the case of CIT vs. Excel Industries Limited, (2013) 39 taxmann.com 100 (SC)…

ACIT Ltu 2, Chennai vs. Nlc India Limited, Neyveli

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 953/CHNY/2018[2014-15]Status: DisposedITAT Chennai08 Feb 2021AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…poned recognition of income even though said surcharge has been accounted in the books of accounts of the assessee on accrual basis. The assessee has taken support from the decision of Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., vs. CIT, 225 ITR 746 and argued that in the event of uncertainty of realization of income, the same even though accrued in the accounts, deserves to be excluded for the purpose of computation of taxable income. The assessee has taken support from the decision of the Hon‘ble Supreme Court in the case of CIT vs. Excel Industries Limited, (2013) 39 taxmann.com 100 (SC)…

Nlc India Ltd., Neyveli vs. DCIT Ltu II, Chennai

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 869/CHNY/2018[2014-15]Status: DisposedITAT Chennai08 Feb 2021AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…poned recognition of income even though said surcharge has been accounted in the books of accounts of the assessee on accrual basis. The assessee has taken support from the decision of Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., vs. CIT, 225 ITR 746 and argued that in the event of uncertainty of realization of income, the same even though accrued in the accounts, deserves to be excluded for the purpose of computation of taxable income. The assessee has taken support from the decision of the Hon‘ble Supreme Court in the case of CIT vs. Excel Industries Limited, (2013) 39 taxmann.com 100 (SC)…

Nlc India Ltd., Neyveli vs. DCIT Ltu II, Chennai

In the result, the appeals filed by the Revenue for both assessment years are dismissed

ITA 868/CHNY/2018[2013-14]Status: DisposedITAT Chennai08 Feb 2021AY 2013-14

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 868 & 869/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 M/S. Nlc India Ltd., The Dcit, (Formerly Known As Neyveli V. Company Circle Vi(4), Lignite Corporation Ltd.), Chennai. Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./Ita Nos.: 952 & 953/Chny/2018 िनधा"रण वष" / Assessment Years: 2013-14 & 2014-15 The Dcit, M/S. Nlc India Ltd., Company Circle Vi(4), V. (Formerly Known As Neyveli Chennai. Lignite Corporation Ltd.), Block-1, Corporate Office, Neyveli Township, Cuddalore District, Neyveli – 607 801. Pan: Aaacn1121C (अपीलाथ"/Appellant) (""यथ"/Respondent) "नधा"रतीक" ओर से/Assessee By : Shri Raghavan Ramabadran, Ca : राज"कीओरसे /Revenue By Shri G. Srinivasa Rao, Cit

For Appellant: Shri Raghavan Ramabadran, CA
Section 14ASection 80I

…poned recognition of income even though said surcharge has been accounted in the books of accounts of the assessee on accrual basis. The assessee has taken support from the decision of Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., vs. CIT, 225 ITR 746 and argued that in the event of uncertainty of realization of income, the same even though accrued in the accounts, deserves to be excluded for the purpose of computation of taxable income. The assessee has taken support from the decision of the Hon‘ble Supreme Court in the case of CIT vs. Excel Industries Limited, (2013) 39 taxmann.com 100 (SC)…

Neeru Duggal, Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1991/DEL/2019[2015-16]Status: DisposedITAT Delhi19 Jan 2021AY 2015-16

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Duggal & Sons Buildwell (P) Ltd., Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1828/DEL/2019[2016-17]Status: DisposedITAT Delhi19 Jan 2021AY 2016-17

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Duggal & Sons Buildwell (P) Ltd., Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1827/DEL/2019[2015-16]Status: DisposedITAT Delhi19 Jan 2021AY 2015-16

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Duggal & Sons Buildwell (P) Ltd., Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1826/DEL/2019[2012-13]Status: DisposedITAT Delhi19 Jan 2021AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Duggal & Sons Buildwell (P) Ltd., Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1825/DEL/2019[2011-12]Status: DisposedITAT Delhi19 Jan 2021AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Duggal & Sons Buildwell (P) Ltd., Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1824/DEL/2019[2010-11]Status: DisposedITAT Delhi19 Jan 2021AY 2010-11

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Duggal Estates Pvt. Ltd., Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1823/DEL/2019[2012-13]Status: DisposedITAT Delhi19 Jan 2021AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Arun Duggal, Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1822/DEL/2019[2013-14]Status: DisposedITAT Delhi19 Jan 2021AY 2013-14

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…

Arun Duggal, Faridabad vs. ACIT, Central Circle- 4, New Delhi

In the result, all the appeals of the Assessees are allowed

ITA 1821/DEL/2019[2012-13]Status: DisposedITAT Delhi19 Jan 2021AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…the correct tax liability and correct determination of income of the assessees. We rely 258 ITA.No.1813/Del./2019 Shri Sanjay Duggal, Faridabad etc., & 51batch appeals upon the Judgment of the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., 225 ITR 746 (SC). This fact is also not verified and considered by the JCIT while granting approval under section 153D of the I.T. Act. It may be noted here that entire sale proceeds when cannot be added in the hands of M/s JIL as income which is also not done in the case of M/s. JIL, rightly so, how the same sale proceeds could be added as income in the han…