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

Rajnish Talwar, New Delhi vs. ACIT, Central Circle-4, New Delhi

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

ITA 1611/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…

Kritika Talwar, New Delhi vs. ACIT Central Circle 4, New Dehli

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

ITA 1609/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…

Kritika Talwar, New Delhi vs. ACIT Central Circle 4, New Dehli

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

ITA 1608/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…

Jv of Kiran Infra Engineers Ltd. & Eliop, Jaipur vs. Income Tax Officer, Ward-4-2, Jaipur

In the result, this appeal of the assessee is allowed

ITA 711/JPR/2019[2010-11]Status: DisposedITAT Jaipur19 Jan 2021AY 2010-11

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 711/Jp/2019 Assessment Year: 2010-11 Jv Of Kiran Infra Engineers Ltd. & Cuke I.T.O. Vs. Eliop, Ward-4(2), B-141, Road No. 9D, Vki Area, Jaipur. Jaipur. Pan No.: Aaaaj 5853 F Vihykfkhz@Appellant Izr;Fkhz@Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By : Shri Manish Agarwal (Ca) Jktlo Dh Vksj Ls@ Revenue By : Smt. Rooni Paul (Addl.Cit) Lquokbz Dh Rkjh[K@ Date Of Hearing : 15/12/2020 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 19/01/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. The Present Appeal Has Been Filed By The Assessee Against The Order Of The Ld. Cit(A), Ajmer Dated 01/03/2019 For The A.Y. 2010-11, Wherein The Assessee Has Raised Following Grounds Of Appeal: “1. On Facts & In Circumstances Of The Matter, The Ld. Cit(A) Erred In Confirming Addition Of Rs.1,18,96,853/- Made By Applying Profit Rate Of 8% On Contract Receipts Of Rs.14,87,10,667/- Arbitrarily. 1.1 That, The Ld.Cit(A) Has Further Erred In Upholding Addition By Completely Ignoring The Submission Made By Assessee & Evidences Adduced. The Addition Confirmed Are Solely Based On Conjectures & Surmises. Appellant Thus Prays That Such Addition Being Most Arbitrary, Unjust, Untenable & Bad In Law, Deserve To Be Deleted. 1.2. That, Ld. Cit(A) Has Grossly Erred In Upholding Addition Of Rs.1,18,96,853/- By Disregarding The Submission Of Assessee That Entire

For Appellant: Shri Manish Agarwal (CA)For Respondent: Smt. Rooni Paul (Addl.CIT)
Section 133(6)

…P Vs ITO purpose of levy of tax. A rebate obtained by the purchaser or remission of debt by a creditor would not result in the creation of income in the hands of the purchaser or debtor. The Hon’ble Supreme Court in the case of Godhara Electricity Co. Vs. CIT 225 ITR 746 (SC) has held that: Income tax is a levy on income. No doubt, the Income Tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt; but the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in book-keeping, an…

Shree Veershaiv Co.Op.Bank Ltd, Kolhapur vs. Income Tax Officer, Kolhapur

In the result, the appeal in ITA No

ITA 606/PUN/2017[2013-14]Status: DisposedITAT Pune12 Jan 2021AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl. No.

For Appellant: Shri M. K. KulkarniFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 194CSection 40

…t is well settled in income-tax law that book keeping entries are not decisive or determinative of the true nature of the entries as held by the Supreme Court in CIT vs. India Discount Co. Ltd. [1970] 75 ITR 191 and in Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC). It has been held in those decisions that the court has to see the true nature of the receipts and not go only by the entry in the books of account. We agree with the Tribunal that these deposits are really capital receipts and not revenue receipts. In Chowringhee Sales Bureau P. Ltd. V. CIT [1973] 87 ITR 542 (SC) which was followed in Sincl…

Shree Veershaiv Co.Op.Bank Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeal in ITA No

ITA 605/PUN/2017[2012-13]Status: DisposedITAT Pune12 Jan 2021AY 2012-13

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl. No.

For Appellant: Shri M. K. KulkarniFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 194CSection 40

…t is well settled in income-tax law that book keeping entries are not decisive or determinative of the true nature of the entries as held by the Supreme Court in CIT vs. India Discount Co. Ltd. [1970] 75 ITR 191 and in Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC). It has been held in those decisions that the court has to see the true nature of the receipts and not go only by the entry in the books of account. We agree with the Tribunal that these deposits are really capital receipts and not revenue receipts. In Chowringhee Sales Bureau P. Ltd. V. CIT [1973] 87 ITR 542 (SC) which was followed in Sincl…

Shree Veershaiv Co.Op.Bank Ltd, Kolhapur vs. Assistant Commissioner of Income Tax, Kolhapur

In the result, the appeal in ITA No

ITA 604/PUN/2017[2009-10]Status: DisposedITAT Pune12 Jan 2021AY 2009-10

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl. No.

For Appellant: Shri M. K. KulkarniFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 194CSection 40

…t is well settled in income-tax law that book keeping entries are not decisive or determinative of the true nature of the entries as held by the Supreme Court in CIT vs. India Discount Co. Ltd. [1970] 75 ITR 191 and in Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC). It has been held in those decisions that the court has to see the true nature of the receipts and not go only by the entry in the books of account. We agree with the Tribunal that these deposits are really capital receipts and not revenue receipts. In Chowringhee Sales Bureau P. Ltd. V. CIT [1973] 87 ITR 542 (SC) which was followed in Sincl…

Shree Veershaiv Co.Op .Bank Ltd, Kolhapur vs. Income-Tax Officer, Ward - 2(2), Kolhapur

In the result, the appeal in ITA No

ITA 2611/PUN/2017[2014-15]Status: DisposedITAT Pune12 Jan 2021AY 2014-15

Bench: Shri Inturi Rama Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl. No.

For Appellant: Shri M. K. KulkarniFor Respondent: Shri S. P. Walimbe
Section 143(3)Section 194CSection 40

…t is well settled in income-tax law that book keeping entries are not decisive or determinative of the true nature of the entries as held by the Supreme Court in CIT vs. India Discount Co. Ltd. [1970] 75 ITR 191 and in Godhra Electricity Co. Ltd v. CIT [1997] 225 ITR 746 (SC). It has been held in those decisions that the court has to see the true nature of the receipts and not go only by the entry in the books of account. We agree with the Tribunal that these deposits are really capital receipts and not revenue receipts. In Chowringhee Sales Bureau P. Ltd. V. CIT [1973] 87 ITR 542 (SC) which was followed in Sincl…

DCIT Cent. Cir. -5(3) (Erstwhile DCIT Cent. Cir. -36), Mumbai vs. Sumer Builders, Mumbai

In the result, appeal of the assessee is partly allowed as indicated above and appeal of the Revenue is dismissed

ITA 5130/MUM/2016[2011-12]Status: DisposedITAT Mumbai08 Jan 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Blem/S. Sumer Builders V. Dy. Commissioner Of Income-Tax Central Circle – 5(3) 201, Commerce House {Erstwhile Dcit, Central Circle – 36} 140, Nm Road, Fort Room No. 1906, 19Th Floor Mumbai – 400 023 Air India Building, Nariman Point Mumbai – 400 021 Pan: Aaafs2829R

For Appellant: Shri Nishit GandhiFor Respondent: Shri A. Mohan
Section 36(1)(iii)

…mits that such an approach, apart from being unjust was also contrary to the settled binding judicial precedents. Reliance was placed on CIT v. Shoorji Valabhdas & Co [46 ITR 144 (SC)], Morvi Industries v. CIT [82 ITR 835 (SC)], Godhra Electricity Co. v. CIT [225 ITR 746 (SC)]. It was further argued that entry or absence in the books of accounts is not determinative of taxability of income or allowability of a deduction under the Act. Therefore, it is submitted that the Ld.CIT(A) erred in not allowing the said grounds merely on the basis that the said on-money receipts were reflected income in the books of accoun…

Sumer Builders, Mumbai vs. DCIT Cen Cir 5(3), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above and appeal of the Revenue is dismissed

ITA 4915/MUM/2016[2011-12]Status: DisposedITAT Mumbai08 Jan 2021AY 2011-12

Bench: Shri C.N. Prasad, Hon'Ble & Shri M. Balaganesh, Hon'Blem/S. Sumer Builders V. Dy. Commissioner Of Income-Tax Central Circle – 5(3) 201, Commerce House {Erstwhile Dcit, Central Circle – 36} 140, Nm Road, Fort Room No. 1906, 19Th Floor Mumbai – 400 023 Air India Building, Nariman Point Mumbai – 400 021 Pan: Aaafs2829R

For Appellant: Shri Nishit GandhiFor Respondent: Shri A. Mohan
Section 36(1)(iii)

…mits that such an approach, apart from being unjust was also contrary to the settled binding judicial precedents. Reliance was placed on CIT v. Shoorji Valabhdas & Co [46 ITR 144 (SC)], Morvi Industries v. CIT [82 ITR 835 (SC)], Godhra Electricity Co. v. CIT [225 ITR 746 (SC)]. It was further argued that entry or absence in the books of accounts is not determinative of taxability of income or allowability of a deduction under the Act. Therefore, it is submitted that the Ld.CIT(A) erred in not allowing the said grounds merely on the basis that the said on-money receipts were reflected income in the books of accoun…

M/S Mojika Real Estate & Developers Pvt. Ltd., Jaipur vs. Deputy Commissioner of Income Tax, Circle-3, Jaipur

In the result, the sole ground of appeal taken by the assessee is hereby dismissed

ITA 1429/JPR/2018[2014-15]Status: DisposedITAT Jaipur25 Nov 2020AY 2014-15
For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Ranjan Kumar (CIT)
Section 133ASection 133A(3)Section 145(3)

…the DCIT, Jaipur vs. M/s Mojika Real Estate & Developers Pvt. Ltd., Jaipur basis of statements of directors, which remained uncorroborated. In this regard, reliance is placed on the decision of Hon’ble Supreme Court in case of CIT vs Godhra Electricity Ltd. (225 ITR 746). 16. It was further submitted that in the statements recorded of the director Shri Nagarmal Agarwal during the course of survey, the section under which they are recorded have been stated as 131A(1) which appears to be a slip of pen as no such section is available on the statute therefore there arises no occasion to invoke the same. Possibly th…

Deputy Commissioner of Income Tax, Circle-3, Jaipur vs. M/S Mojika Real Estate & Developers Pvt. Ltd., Jaipur

In the result, the sole ground of appeal taken by the assessee is hereby dismissed

ITA 1236/JPR/2018[2014-15]Status: DisposedITAT Jaipur25 Nov 2020AY 2014-15
For Appellant: Sh. Manish Agarwal (CA)For Respondent: Sh. Ranjan Kumar (CIT)
Section 133ASection 133A(3)Section 145(3)

…the DCIT, Jaipur vs. M/s Mojika Real Estate & Developers Pvt. Ltd., Jaipur basis of statements of directors, which remained uncorroborated. In this regard, reliance is placed on the decision of Hon’ble Supreme Court in case of CIT vs Godhra Electricity Ltd. (225 ITR 746). 16. It was further submitted that in the statements recorded of the director Shri Nagarmal Agarwal during the course of survey, the section under which they are recorded have been stated as 131A(1) which appears to be a slip of pen as no such section is available on the statute therefore there arises no occasion to invoke the same. Possibly th…

United Shippers Ltd., Mumbai vs. DCIT - 3(3), Mumbai

In the result the appeal filed by the assessee is allowed

ITA 5815/MUM/2018[2015-16]Status: DisposedITAT Mumbai06 Jul 2020AY 2015-16

Bench: Shri Pramod Kumar & Shri Amarjit Singh

Section 143(2)Section 14A

…e ground of interest being not charged by assessee. Ld. counsel has relied on following decisions for the proposition that only real income can be taxed and not notional income. - ShoorjiVallabhdas& Co. 46 ITR 144 (SC); - Godhra Electricity Co. Ltd.v. . CIT 225 ITR 746 (SC); - CIT vs. A. Raman & Co. 67 ITR 11(SC); - UCO Bank v. CIT 237 ITR 889 (SC); - Airport Authority of India v. CIT 340 ITR 407 (Del. )(FB); - CIT v. Motor Credit Co. P. Ltd. 127 ITR 572 (Mad.); - JCIT v. Pankaj Oxygen Ltd. 78 TTJ 119 (Nag.) - ACIT vs. Manick Chand Damani 72 TTJ 675 (Cal.). 13.1. After hearing both the parties, we do not find a…

Harvansh Chawla, New Delhi vs. ACIT, Circle-5, New Delhi

In the result, the appeal of the assessee is allowed

ITA 300/DEL/2020[2017-18]Status: DisposedITAT Delhi03 Jun 2020AY 2017-18

Bench: Ms. Sushma Chowladr. B. R. R. Kumar(E-Court Module) Ita No. 300/Del/2020 : Asstt. Year : 2017-18 Harvansh Chawla, Vs Acit, C-17, Nizamuddin East, Circle-5, New Delhi-110014 New Delhi (Appellant) (Respondent) Pan No. Addpc7559G Assessee By : Sh. Rohit Tiwari, Adv. Revenue By : Sh. Anupam Kant Garg, Cit Dr Date Of Hearing: 27.05.2020 Date Of Pronouncement: 03.06.2020

For Appellant: Sh. Rohit Tiwari, AdvFor Respondent: Sh. Anupam Kant Garg, CIT DR
Section 132Section 153BSection 153cSection 234ASection 271A

…efore us, the ld. AR vehemently argued that there is no concept of notional interest to be taxed on the security deposit received by the assessee as per the provisions of Income Tax Act. Relying on the judgment in the case of Godhra Electrical Co. Ltd. Vs CIT 225 ITR 746 (SC) and Highways Constructions Co. Pvt. Ltd. Vs CIT 199 ITR 702 (Gau), he argued that in the absence of any real income or accrual of income, notional interest cannot be brought to tax being a hypothetical income. It was argued that the amount has been continued to be shown as outstanding liability in the assessment year 2017-18 and so as from 2…

DCIT, CC-1(3), Kolkata vs. M/S. Emc Limited, Kolkata

In the result, both the appeal of revenue is dismissed

ITA 2149/KOL/2017[2014-15]Status: DisposedITAT Kolkata27 May 2020AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 115JSection 143(2)Section 14A

…ced hereunder: 7.2. Under the scheme of the Act, what is taxable is the income that has accrued in favor of the assessee, i.e. real income and not notional. This view is amplified in the decision of Hon’ble Supreme court in case of Godhra Electricity Co. Ltd. 225 ITR 746. 7.3. In our view for a receipt to accrue as income an accounting entry cannot be only decisive factor. If the same is not accrued it cannot be held as income only because of such entry. The retention money is contingent upon the completion and post warranty certificate from the engineer in-charge of NTPC. Neither the work was completed nor the d…

Afcons Infrastructure Ltd, Mumbai vs. Pr.CIT 9, Mumbai

The appeal stands allowed to the extent indicated in the order

ITA 3159/MUM/2019[2014-15]Status: DisposedITAT Mumbai17 Mar 2020AY 2014-15

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.3159/Mum/2019 (िनधा"रण वष" / Assessment Year:2014-15) Afcons Infrastructure Limited Pr. Cit-9 16, Afcons House Room No.214, Aaykar Bhavan बनाम/ 2Nd Floor, M.K. Road Shah Industrial Estate Vs. Veera Desai Road, Andheri West Mumbai. Mumbai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaca-9067-G (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ" की ओर से/ Appellant By : S/Shri J.D. Mistry & Nitesh Joshi-Ld. Ars ""थ"कीओरसे/Respondent By : Shri Anadi Varma-Ld.Cit-Dr सुनवाईकीतारीख/ : 05/09/2019 & 19/12/2019 Date Of Hearing घोषणाकीतारीख / : 17/03/2020 Date Of Pronouncement आदेश / O R D E R

For Appellant: S/Shri J.D. Mistry & Nitesh Joshi-Ld. ArsFor Respondent: Shri Anadi Varma-Ld.CIT-DR
Section 263

…ere disputed by the clients before Hon’ble High Courts. For the said submissions, reliance was placed, inter-alia, on the decision of Hon’ble Apex Court in Hindustan Housing and Land Development Trust Ltd. (1986 161 ITR 524), Godhra Electricity Co. Ltd. (1997 225 ITR 746), decision of Hon’ble Bombay High Court in CIT V/s Seksaria Biswan Sugar Factory Pvt. Ltd. (1992 195 ITR 778), CIT V/s Vimla D. Sonwane (1994 212 ITR 489), CIT V/s Sharda Sugar Industries Ltd. (1999 239 ITR 393) and CIT V/s Abdul Mannan Shah Mohammed (2001 248 ITR 614) besides various other decision of Hon’ble High Courts. In the stated backgroun…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 219/KOL/2018[2013-14]Status: DisposedITAT Kolkata28 Feb 2020AY 2013-14

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…entered into by the assessee firm to secure a long-term managing agency arrangement for the two companies which it had floated. “ 6. The same was once again expressed by the Hon'ble Apex Court in its decision in the case of Godra Electricity Co. Ltd Vs. CIT (225 ITR 746). The relevant extracts of tile judgment is as follows: "Under the Act income charged to tax is the income that is received or is deemed to be received in India in the previous year relevant to the year for which assessment is made or on the income that accrues or arises or is deemed to accrue or arise in India during such year. The computation o…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 218/KOL/2018[2012-13]Status: DisposedITAT Kolkata28 Feb 2020AY 2012-13

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…entered into by the assessee firm to secure a long-term managing agency arrangement for the two companies which it had floated. “ 6. The same was once again expressed by the Hon'ble Apex Court in its decision in the case of Godra Electricity Co. Ltd Vs. CIT (225 ITR 746). The relevant extracts of tile judgment is as follows: "Under the Act income charged to tax is the income that is received or is deemed to be received in India in the previous year relevant to the year for which assessment is made or on the income that accrues or arises or is deemed to accrue or arise in India during such year. The computation o…

DCIT, Central Circle - 2(1), Kolkata vs. M/S. Paharpur Cooling Towers Ltd., Kolkata

ITA 217/KOL/2018[2011-12]Status: DisposedITAT Kolkata28 Feb 2020AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L.Saini

Section 143(3)Section 144C(3)Section 14ASection 154Section 43B

…entered into by the assessee firm to secure a long-term managing agency arrangement for the two companies which it had floated. “ 6. The same was once again expressed by the Hon'ble Apex Court in its decision in the case of Godra Electricity Co. Ltd Vs. CIT (225 ITR 746). The relevant extracts of tile judgment is as follows: "Under the Act income charged to tax is the income that is received or is deemed to be received in India in the previous year relevant to the year for which assessment is made or on the income that accrues or arises or is deemed to accrue or arise in India during such year. The computation o…

DCIT, Circle - 35, Kolkata vs. M/S. Kolkata Port Trust, Kolkata

In the result, all the appeals of the assessee are partly allowed and COs of the assessee are dismissed and all the appeals of the revenue are dismissed

ITA 453/KOL/2018[2014-15]Status: DisposedITAT Kolkata21 Feb 2020AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A.L. Saini, Am]

Section 271(1)(c)Section 274

…will be treated as a revenue receipt and taxed in accordance to law. Coming to this conclusion, we also apply the real income theory which is propounded in CIT Vs. M/s. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 and Godhra Electricity Co. Ltd. Vs. CIT (1997) 225 ITR 746 and since no real income has arisen for the assessee in the year under consideration in respect of the sum of Rs.101 cr. (unrealised portion of the compensation) this amount need not be taxed in this assessment year, and we order accordingly. For this, we also rely on the decision of the Hon’ble Bombay High Court in the case of DSL Enterprises (P…