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 366,470 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

JCIT(OSD) Central Circle 1, Jhandewalan vs. Sahara India Real Estate Corporation Ltd., Lucknow

ITA 1085/DEL/2024[2017-18]Status: DisposedITAT Delhi07 Oct 2025AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman

For Appellant: Sh. Ajay Vohra, Sr. Adv. &For Respondent: Sh. Mahesh Kumar, CIT-DR
Section 143(3)

…to have resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of accounts." 17. Similarly In the case of Godhra Electricity Co. Ltd. Vs. CIT 225 ITR 746 (SC), the apex court held as under:- "The question whether there was real accrual of income to the assessee-company in respect of enhanced charges for supply of electricity has to be considered by taking the probability or improbability of realization in a realistic manner. If the matter Is considered in this light, it is not possible to hold tha…

Deputy Commissioner of Income Tax, Central Circle-4, Surat vs. Sahajanand Medical Technologies Limited, Surat

In the result, appeal of revenue is dismissed whereas CO of assessee is dismissed as infructuous

ITA 366/SRT/2025[2018-19]Status: DisposedITAT Surat19 Sept 2025AY 2018-19

Bench: Ms. Suchitra R. Kammble & Shri Bijayananda Prusethआयकर अपील सं./Ita Nos.364 & 366/Srt/2025 Ays: (2020-21 & 2018-19) (Physical Hearing) Dcit, Vs. Sahajanand Medical Technologies Central Circle – 4, Limited, Surat 221, C-Wing, Kanakia Atrium Andheri Kurla Road, Jb Nagar, Andheri East, Mumbai - 400059 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aafcs7694L (Appellant) (Respondent) Co. No.11/Srt/2025 (Ay 2018-19) [Arising Out Of Ita No.366/Srt/2025] Sahajanand Medical Technologies Vs. Dcit, Limited, Central Circle – 4, 221, C-Wing, Kanakia Atrium Andheri Surat Kurla Road, Jb Nagar, Andheri East, Mumbai - 400059 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aafcs7694L (Appellant) (Respondent) Appellant By Shri Rajesh C. Shah, Ca Respondent By Shri Ravinder Sindhu, Cit-Dr Date Of Hearing 28/08/2025 Date Of Pronouncement 19/09/2025

Section 142(1)Section 143(2)Section 250Section 35(1)(iv)Section 80G

…he nature of notional or hypothetical income, which cannot be even otherwise subject to tax. While deciding the issue, the Hon’ble High Court referred to the decision of the Hon’ble Supreme Court in case of Godhra Electrics Supply Company Ltd. vs. CIT, [1997] 225 ITR 746 (SC) and Sutlej Cotton Mills Ltd. (supra). ITA No.364 & 366/SRT/2025/AY 2020-21 & 2018-19 & Co. No.11/SRT/2025/AY 2018-19 Sahajanand Medical Technologies Ltd. The Hon’ble Supreme Court in case of Sutlej Cotton Mills Ltd. (supra) has held as under: “…The law is well settled that where profit or loss arises to an assessee on account of appreciat…

Deputy Commissioner of Income Tax, Central Circle-4, Surat vs. Sahajanand Medical Technologies Limited, Surat

In the result, appeal of revenue is dismissed whereas CO of assessee is dismissed as infructuous

ITA 364/SRT/2025[2020-21]Status: DisposedITAT Surat19 Sept 2025AY 2020-21

Bench: Ms. Suchitra R. Kammble & Shri Bijayananda Prusethआयकर अपील सं./Ita Nos.364 & 366/Srt/2025 Ays: (2020-21 & 2018-19) (Physical Hearing) Dcit, Vs. Sahajanand Medical Technologies Central Circle – 4, Limited, Surat 221, C-Wing, Kanakia Atrium Andheri Kurla Road, Jb Nagar, Andheri East, Mumbai - 400059 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aafcs7694L (Appellant) (Respondent) Co. No.11/Srt/2025 (Ay 2018-19) [Arising Out Of Ita No.366/Srt/2025] Sahajanand Medical Technologies Vs. Dcit, Limited, Central Circle – 4, 221, C-Wing, Kanakia Atrium Andheri Surat Kurla Road, Jb Nagar, Andheri East, Mumbai - 400059 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Aafcs7694L (Appellant) (Respondent) Appellant By Shri Rajesh C. Shah, Ca Respondent By Shri Ravinder Sindhu, Cit-Dr Date Of Hearing 28/08/2025 Date Of Pronouncement 19/09/2025

Section 142(1)Section 143(2)Section 250Section 35(1)(iv)Section 80G

…he nature of notional or hypothetical income, which cannot be even otherwise subject to tax. While deciding the issue, the Hon’ble High Court referred to the decision of the Hon’ble Supreme Court in case of Godhra Electrics Supply Company Ltd. vs. CIT, [1997] 225 ITR 746 (SC) and Sutlej Cotton Mills Ltd. (supra). ITA No.364 & 366/SRT/2025/AY 2020-21 & 2018-19 & Co. No.11/SRT/2025/AY 2018-19 Sahajanand Medical Technologies Ltd. The Hon’ble Supreme Court in case of Sutlej Cotton Mills Ltd. (supra) has held as under: “…The law is well settled that where profit or loss arises to an assessee on account of appreciat…

Om Prakash Gupta, Sawai Madhopur vs. DCIT Central Circle -1, Jaipur

The appeals of the assessee are disposed off as under :

ITA 399/JPR/2025[2017-18]Status: DisposedITAT Jaipur18 Sept 2025AY 2017-18
For Appellant: Shri Tarun Mittal, CA &For Respondent: Shri Rajesh Ojha, CIT-DR &
Section 115BSection 153ASection 69

…are actually imported and made available for clearance. The benefits represent, at best, a hypothetical income which may or may not materialise and its money value is therefore not the income of the assessee. 22. In Godhra Electricity Co. Ltd. v. CIT, [1997] 225 ITR 746/91 Taxman 351 (SC) this Court reiterated the view taken in Shoorji Vallabhdas & Co. (supra)and Morvi Industries Ltd. (supra). 23. Godhra Electricity is rather instructive. In that case, it was noted that the High Court held that the assessee would be obliged to pay tax when the profit became actually due and that income could not be said to have…

Sh. Mahendra Kumar Goyal, Sikar vs. ACIT, Central Circle-3, Jaipur

In the result of the appeal of the assessee are disposed off as under

ITA 500/JPR/2025[2015-16]Status: DisposedITAT Jaipur15 Sept 2025AY 2015-16

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CAFor Respondent: Mrs. Anita Rinesh, JCIT, Sr. DR
Section 127Section 143(2)Section 143(3)Section 153ASection 69

…method of accounting N. R. Sirkar vs. CIT [1954] 26 ITR 83 No presumption of accrual (Gauhati HC) unless mercantile system is followed-but in present case, assessee does follow mercantile system, so this case is distinguishable. Godhra Electricity Co. (1997) 225 ITR 746 Real income theory applies only Ltd. v.CIT (SC) where uncertainty of receipt exists-not applicable where accounts and seized documents show interest calculations. iv. Findings of Ld. CIT(A) (Key Points Incorporated): The AO's failure to add 23,84,000/- in A.Y. 2018-19 was an inadvertent omission. The seized documents (Exhibit-4, Page 62) clearl…

Sh. Mahendra Kumar Goyal, Sikar vs. ACIT, Central Circle-3, Jaipur

In the result of the appeal of the assessee are disposed off as under

ITA 497/JPR/2025[2019-20]Status: DisposedITAT Jaipur15 Sept 2025AY 2019-20

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, आंकड़ुठरधारी आइटीएए सं.र@ITA Nos.493, 495 to 498, 500/JP/2025 निर्धारण वर्ष@Assessment Years : 2014-15 to 2016-17, 2018-19 to 2020-21 Mahendra Kumar Goyal चुके Vs. ACIT/DCIT Ward No. 2, Shahpura Road Neem Ka Thana, Sikar Central Circle-03, Jaipur लेखा संख्याल्लेय सं.जीआइआर सं.पान@PAN/GIR No.: ACFPG0306G अपीलार्थी@Appellant प्रत्यार्थी@Respondent निर्धारीती की आर से@ Assessee by : Shri P. C. Parwal, CA राजस्व की आर से@ R

For Appellant: Shri P. C. Parwal, CAFor Respondent: Mrs. Anita Rinesh, JCIT, Sr. DR
Section 127Section 143(2)Section 143(3)Section 153ASection 69

…method of accounting N. R. Sirkar vs. CIT [1954] 26 ITR 83 No presumption of accrual (Gauhati HC) unless mercantile system is followed-but in present case, assessee does follow mercantile system, so this case is distinguishable. Godhra Electricity Co. (1997) 225 ITR 746 Real income theory applies only Ltd. v.CIT (SC) where uncertainty of receipt exists-not applicable where accounts and seized documents show interest calculations. iv. Findings of Ld. CIT(A) (Key Points Incorporated): The AO's failure to add 23,84,000/- in A.Y. 2018-19 was an inadvertent omission. The seized documents (Exhibit-4, Page 62) clearl…

Sh. Mahendra Kumar Goyal, Sikar vs. ACIT, Central Circle-3, Jaipur

In the result of the appeal of the assessee are disposed off as under

ITA 496/JPR/2025[2018-19]Status: DisposedITAT Jaipur15 Sept 2025AY 2018-19

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CAFor Respondent: Mrs. Anita Rinesh, JCIT, Sr. DR
Section 127Section 143(2)Section 143(3)Section 153ASection 69

…method of accounting N. R. Sirkar vs. CIT [1954] 26 ITR 83 No presumption of accrual (Gauhati HC) unless mercantile system is followed-but in present case, assessee does follow mercantile system, so this case is distinguishable. Godhra Electricity Co. (1997) 225 ITR 746 Real income theory applies only Ltd. v.CIT (SC) where uncertainty of receipt exists-not applicable where accounts and seized documents show interest calculations. iv. Findings of Ld. CIT(A) (Key Points Incorporated): The AO's failure to add 23,84,000/- in A.Y. 2018-19 was an inadvertent omission. The seized documents (Exhibit-4, Page 62) clearl…

Sh. Mahendra Kumar Goyal, Sikar vs. ACIT, Central Circle-3, Jaipur

In the result of the appeal of the assessee are disposed off as under

ITA 493/JPR/2025[2014-15]Status: DisposedITAT Jaipur15 Sept 2025AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri P. C. Parwal, CAFor Respondent: Mrs. Anita Rinesh, JCIT, Sr. DR
Section 127Section 143(2)Section 143(3)Section 153ASection 69

…method of accounting N. R. Sirkar vs. CIT [1954] 26 ITR 83 No presumption of accrual (Gauhati HC) unless mercantile system is followed-but in present case, assessee does follow mercantile system, so this case is distinguishable. Godhra Electricity Co. (1997) 225 ITR 746 Real income theory applies only Ltd. v.CIT (SC) where uncertainty of receipt exists-not applicable where accounts and seized documents show interest calculations. iv. Findings of Ld. CIT(A) (Key Points Incorporated): The AO's failure to add 23,84,000/- in A.Y. 2018-19 was an inadvertent omission. The seized documents (Exhibit-4, Page 62) clearl…

Sharath Kumar Reddy Sareddy, Wanaparthy, Mahabub Nagar vs. Income Tax Officer, Ward -1, Mahabubnagar

In the result, appeal filed by the assessee is dismissed

ITA 1096/HYD/2024[2022-23]Status: DisposedITAT Hyderabad20 Aug 2025AY 2022-23

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Madhusudan Sawdiaआ.अपी.सं /Ita No.1096/Hyd/2024 (िनधा"रण वष"/Assessment Year: 2022-23) Shri Sharath Kumar Reddy Vs. Income Tax Officer Sareddy, Wanaparthy Ward – 1 Mahbubnagar Mahbubnagar Pan:Hpwps0712H (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri K.A. Sai Prasad, Ca राज" व "ारा/Revenue By:: Dr. Sachin Kumar, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 16/07/2025 घोषणा की तारीख/Pronouncement: 20/08/2025 आदेश/Order

For Appellant: Shri K.A. Sai Prasad, CAFor Respondent: : Dr. Sachin Kumar, Sr. AR
Section 115BSection 194BSection 58(4)

…trine of real income should be applied. This newly introduction of provisions of the Income Tax Act ensure only real income is chargeable to tax. He has referred to the judgement of the Hon'ble Supreme Court in case of Godhra Electricity Co. Ltd v. CIT (1997) 225 ITR 746 and submitted that the principle of real income has been upheld by the Hon'ble Supreme Court in the said case. The learned Counsel for the assessee has further submitted that in case of the other assessees, the Assessing Officer while passing the assessment order u/s 143(3) of the Act has accepted the net Page 5 of 17 ITA No 1096 of 2024 Sharat…

Dy. Commissioner of Income Tax Circle 10(1), Delhi, Cr Building vs. Indus Towers Limited, Gurgram

ITA 2805/DEL/2023[2011-12]Status: DisposedITAT Delhi08 Aug 2025AY 2011-12

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal

Section 142Section 143(3)

…s of value given in the red herring prospectus issued for the purposes of IPO in December 2012. In this connection the principle laid down by the Supreme Court in the case of Shoorji Vallabhdas & Co. 46 ITR and in the case of Godhra Electricity Co. Ltd v. CIT 225 ITR 746 would be applicable to appellant's case, wherein it is held as under:- "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 income. If income does not result at all, there cannot be tax, even through in book keeping, an…

Indus Towers Ltd., Gurugram, Haryana vs. Deputy Commissioner of Income-Tax, Circle 12(1), New Delhi

ITA 2607/DEL/2023[2011-12]Status: DisposedITAT Delhi08 Aug 2025AY 2011-12

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal

Section 142Section 143(3)

…s of value given in the red herring prospectus issued for the purposes of IPO in December 2012. In this connection the principle laid down by the Supreme Court in the case of Shoorji Vallabhdas & Co. 46 ITR and in the case of Godhra Electricity Co. Ltd v. CIT 225 ITR 746 would be applicable to appellant's case, wherein it is held as under:- "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 income. If income does not result at all, there cannot be tax, even through in book keeping, an…

DCIT, Circle-5(1), Kolkata, Ayakar Bhawan Kolkata vs. Coal India Limited, Coal Bhawan

In the result, all the three appeals of the revenue are dismissed

ITA 1142/KOL/2023[2013-14]Status: DisposedITAT Kolkata18 Jun 2025AY 2013-14

Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)

For Appellant: NoneFor Respondent: Ms. Ranu Biswas, Addl.CIT-Sr.DR
Section 14A

…a loan given by the assessee to M/s Bharat Coking Coal Limited (BCCL). It was the submission that the ld. CIT(A) had deleted the addition by following the principle laid down by the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., reported in 225 ITR 746 (SC) as also the decision in the case of UCO Bank, reported in 237 ITR 889 (SC) and the decision of the Hon’ble Calcutta High Court in the case of Balrampur Commercial Enterprise, reported in 262 ITR 439 (Cal). It was the submission that the ld. CIT(A) had deleted the addition on the ground that M/s Bharat Coking Coal Ltd. was before the BIFR. It…

DCIT Circle 5(1) Kolkata, Circle - V(I), Ayakar Bhawan Kolkata vs. Coal India Limited, Coal Bhawan

In the result, all the three appeals of the revenue are dismissed

ITA 1141/KOL/2023[2012-13]Status: DisposedITAT Kolkata18 Jun 2025AY 2012-13

Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)

For Appellant: NoneFor Respondent: Ms. Ranu Biswas, Addl.CIT-Sr.DR
Section 14A

…a loan given by the assessee to M/s Bharat Coking Coal Limited (BCCL). It was the submission that the ld. CIT(A) had deleted the addition by following the principle laid down by the Hon’ble Supreme Court in the case of Godhra Electricity Co. Ltd., reported in 225 ITR 746 (SC) as also the decision in the case of UCO Bank, reported in 237 ITR 889 (SC) and the decision of the Hon’ble Calcutta High Court in the case of Balrampur Commercial Enterprise, reported in 262 ITR 439 (Cal). It was the submission that the ld. CIT(A) had deleted the addition on the ground that M/s Bharat Coking Coal Ltd. was before the BIFR. It…

Assistant Commissioner of Income-Tax, Central Circle-1(2), Ahmedabad vs. Sankalp Organisers Pvt Ltd, Ahmedabad

In the result, the appeals in IT(SS)A No

ITA 482/AHD/2023[2019-20]Status: DisposedITAT Ahmedabad06 Jun 2025AY 2019-20

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 132Section 143(3)Section 68Section 69C

…tled that only real income has I.T.(SS)A No. 47 to 52/Ahd/2023 and Ors. A.Ys. 2013-14 to 2018-19 Page No 15 Sankalp Organizers Pvt. Ltd. Vs. ACIT & Ors. to be taxed in the hands of the assessee. Reliance is placed on Godhra Electricity Co. Ltd.-vs-CIT (1997) 225 ITR 746 (SC). Further it is well settled principle of law that AO is duty bound to give relief to an assessee wherever due, even if it has not been claimed by the assessee. Reliance is placed on decision in the case of S. R. Koshti Vs- CIT (2005) 276 ITR 165 (Guj). 6.3. Thus Ld Senior Counsel pleaded that the methodology adopted by Ld CIT(A) is not abso…

The Asstt. Commissioner of Incometax, Central Circle-1(2), Ahmedabad vs. Sankalp Venture LLP, Ahmedabad

In the result, the appeals in IT(SS)A No

ITA 481/AHD/2023[2019-20]Status: DisposedITAT Ahmedabad06 Jun 2025AY 2019-20

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 132Section 143(3)Section 68Section 69C

…tled that only real income has I.T.(SS)A No. 47 to 52/Ahd/2023 and Ors. A.Ys. 2013-14 to 2018-19 Page No 15 Sankalp Organizers Pvt. Ltd. Vs. ACIT & Ors. to be taxed in the hands of the assessee. Reliance is placed on Godhra Electricity Co. Ltd.-vs-CIT (1997) 225 ITR 746 (SC). Further it is well settled principle of law that AO is duty bound to give relief to an assessee wherever due, even if it has not been claimed by the assessee. Reliance is placed on decision in the case of S. R. Koshti Vs- CIT (2005) 276 ITR 165 (Guj). 6.3. Thus Ld Senior Counsel pleaded that the methodology adopted by Ld CIT(A) is not abso…

Sankalp Venture LLP, Ahmedabad vs. The Asstt. Commissioner of Incometax, Central Circle-1(2), Ahmedabad

In the result, the appeals in IT(SS)A No

ITA 436/AHD/2023[2019-20]Status: DisposedITAT Ahmedabad06 Jun 2025AY 2019-20

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 132Section 143(3)Section 68Section 69C

…tled that only real income has I.T.(SS)A No. 47 to 52/Ahd/2023 and Ors. A.Ys. 2013-14 to 2018-19 Page No 15 Sankalp Organizers Pvt. Ltd. Vs. ACIT & Ors. to be taxed in the hands of the assessee. Reliance is placed on Godhra Electricity Co. Ltd.-vs-CIT (1997) 225 ITR 746 (SC). Further it is well settled principle of law that AO is duty bound to give relief to an assessee wherever due, even if it has not been claimed by the assessee. Reliance is placed on decision in the case of S. R. Koshti Vs- CIT (2005) 276 ITR 165 (Guj). 6.3. Thus Ld Senior Counsel pleaded that the methodology adopted by Ld CIT(A) is not abso…

Sankalp Organisers Private Limited, Ahmedabad vs. The Asstt. Commissioner of Incometax, Central Circle-1(2), Ahmedabad

In the result, the appeals in IT(SS)A No

ITA 435/AHD/2023[2019-20]Status: DisposedITAT Ahmedabad06 Jun 2025AY 2019-20

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 132Section 143(3)Section 68Section 69C

…tled that only real income has I.T.(SS)A No. 47 to 52/Ahd/2023 and Ors. A.Ys. 2013-14 to 2018-19 Page No 15 Sankalp Organizers Pvt. Ltd. Vs. ACIT & Ors. to be taxed in the hands of the assessee. Reliance is placed on Godhra Electricity Co. Ltd.-vs-CIT (1997) 225 ITR 746 (SC). Further it is well settled principle of law that AO is duty bound to give relief to an assessee wherever due, even if it has not been claimed by the assessee. Reliance is placed on decision in the case of S. R. Koshti Vs- CIT (2005) 276 ITR 165 (Guj). 6.3. Thus Ld Senior Counsel pleaded that the methodology adopted by Ld CIT(A) is not abso…

Weir Minerals (India) Private Ltd, New Delhi vs. DCIT Circle-27(1), New Delhi

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

ITA 4713/DEL/2019[2012-13]Status: DisposedITAT Delhi06 Jun 2025AY 2012-13

Bench: Ms. Madhumita Roy & Shri Khettra Mohan Roy[Assessment Year 2012-13]

Section 143(3)Section 234B

…arrangement for the two companies which it had floated. The High Court was right in coming to the conclusion that on the facts of this case the larger income neither. accrued nor was received by the assessee firm." • Godhra Electricity Co. Ltd. v. CIT: [1997) 225 ITR 746 (SC) • CIT v. Birla Gwalior (P.) Ltd : [1973] 89 ITR 266 (SC) • Poona Electric Supply Co. Ltd. v. CIT: [1965) 57 ITR 521 (SC) • Brahamputra Capital & Financial Services Ltd. v. ITO [2009] 119 ITD 266 (Delhi) • H.M. Kashiparekh & Co. Ltd. v. CIT : [1960) 39 ITR 706 (BOM.) • CIT v. Motor Credit Co. (P.) Ltd.: [1981] 6 Taxman 63 (Madras) • M/s. Nuta…

Robin Ramavtar Goenka, Ahmedabad vs. The ACIT, Central Circle-1(2), Ahmedabad

In the result, the appeal filed by the Revenue IT[SS]A Nos

ITA 434/AHD/2023[2019-20]Status: DisposedITAT Ahmedabad30 May 2025AY 2019-20

Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Makarand Vasant Mahadeokar (Accountant Member)

Section 132Section 143(3)Section 69C

…n higher side. Therefore, in the interest of justice, some reasonable rate of profit may be decided. Further it is well settled that only real income has to be taxed in the hands of the assessee. Reliance is placed on Godhra Electricity Co. Ltd.-vs-CIT (1997) 225 ITR 746 (SC). Further it is well settled principle of law that AO is duty bound to give relief to an assessee wherever due, even if it has not been claimed by the assessee. Reliance is placed on decision in the case of S. R. Koshti Vs- CIT (2005) 276 ITR 165 (Guj). 7.3. Thus Ld Senior Counsel pleaded that the methodology adopted by Ld CIT(A) is not abso…

ACIT, C. R. Building vs. Hansdeep Industries and Trading Company Ltd., Fourth Floor, Link House

In the result, the appeal is allowed

ITA 3466/DEL/2023[2016-17]Status: DisposedITAT Delhi28 May 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2016-17 Vs. M/S. Acit, Hansdeep Industries C.R. Building & Trading Company Ltd., New Delhi 4Th Floor, Link House, 3 Bahadur Shah Zafar Marg, New Delhi Pan: Aabcj0776A (Appellant) (Respondent) Assessee By Sh. Ankit Kumar, Adv. Sh. Lalit Mohan, Ca Department By Sh. Rajesh Kumar Dhanesta, Sr. Dr Date Of Hearing 28.05.2025 Date Of Pronouncement 28.05.2025 Order

Section 143(3)Section 5Section 57

…but charging notional interest as income. Therefore, the case law is not applicable. However, the principles of law laid down by the Supreme Court, High Court and ITAT are available from the case laws discussed below. 5.1. In Godhra Electricity Company (1997) 225 ITR 746 (SC), reiterating its earlier decision in Morvi Industries Ltd. v. CIT (1971) 82 ITR 835 (SC) and CIT v. Birla Gwalior (1973) 89 ITR 266 (SC), the Supreme Court held that tax cannot be imposed on hypothetical accrual of income. It was observed that the question of real accrual of income must be considered by taking the probability of realisation…