J.K.Industries v. UOI

297 ITR 176Supreme Court of India2008#2213 most cited

What is J.K.Industries v. UOI authority for?

Expenditure claimed as purely compensatory to offset cost overrun is allowable if it aligns with the principle of matching the expenditure to the income it relates to.

52

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2008 to 2025.

Also referred to as

J.K. Industries v. UOI · 297 ITR 176 · compensatory expenditure · cost overrun · matching concept · business expenditure · deductible expenses · income tax act

Sections most often in play

Section 143(3)Section 2(24)(x)Section 36(1)(va)

Issues it is cited on

section 23aretention moneysection 145(1)section 211section 115baasection 28(iv)section 145(2)project completion methodsection 43csection 35dpercentage completion methodsection 129

Judgments citing J.K.Industries v. UOI

M/S. G. R. Developers, Bangalore vs. ACIT, Bangalore

In the result, the appeal of the assessee is dismissed

ITA 1439/BANG/2010[2007-08]Status: DisposedITAT Bangalore03 Mar 2017AY 2007-08

Bench: Shri A.K Garodiashri Laliet Kumarg.R Developers, 142-143, 1St Floor, Gr Plaza, D.V.G Road, Basavanagudi, Bangalore-. . Appellant Pan No.Aaefg3522F. Vs. The Asst. Commissioner Of Income-Tax, Circle-3(1), Bangalore. . Respondent * Appellant By : Shri K.R Pradeep, C.A Assessee By : Shri M.K Biju, Jcit Date Of Hearing : 02-02-2017 Date Of Pronouncement : 03-03-2017

For Appellant: Shri K.R Pradeep, C.A Assessee by : Shri M.K Biju, JCIT
Section 234BSection 8

…cannot he treated as accrued. Secondly, it recognizes the matching concept, viz., receipts are to be matched income to arrive at the net income, which would then be eligible to tax." 10. The Apex Court in the case of J.K. Industries v. Union of India [2008] 297 ITR 176 / [2007] 165 Taxman 323 , has explained the 'matching' concept as under: IT(TP)A No.1439/B/10 17 "We may refer to the passage extracted by the Supreme Court from its judgment in the case of J.K. Industries v. Union of India reported in [2007] 13 Scale 204; [2008] 297 ITR 176 in the following terms (page 277 of 297 ITR): "82. Matching concept i…

DCIT, Bangalore vs. M/S Sky Top Builders Pvt. Ltd., Bangalore

In the result, the revenue's appeal is allowed for statistical purpose

ITA 51/BANG/2015[2010-11]Status: DisposedITAT Bangalore21 Oct 2016AY 2010-11

Bench: Shri Vijay Pal Rao & Shri S. Jayaraman

For Appellant: Shri Kamaladhar, Standing CounselFor Respondent: Shri Chandrashekar V, Advocate

…ation. Thus the Assessing Officer has applied the PCM for computing the income from the said project. The ld. DR has submitted that the Assessing Officer has relied upon the judgment of Hon'ble Supreme Court in the case of J K Industries Vs. Union of India 297 ITR 176 (SC) wherein the Hon'ble Supreme Court has upheld the matching principle of recognizing the revenue and cost. Therefore when the Accounting Standard requires the assessee to follow PCM and offer income based on the stage of completion of various undergoing projects then the income offered by the assessee is not a real income but it is a distor…

Mahindra Telecommunications Investment P.Ltd, Mumbai vs. ITO 2(2)(3), Mumbai

In the result, the assessee’s appeal is dismissed

ITA 2832/MUM/2012[2008-09]Status: DisposedITAT Mumbai24 May 2016AY 2008-09

Bench: Shri Joginder Singh, Jm & Shri Sanjay Arora, Am आयकर अपील सं./I.T.A. No. 2832/Mum/2012 ("नधा"रण वष" / Assessment Year: 2008-09) Mahindra Telecommunications Income Tax Officer, 2(2)(3), बनाम/ Investment Private Limited Aaykar Bhavan, Mumbai-400 020 Gateway Building, Apollo Bunder, Vs. Mumbai-400 001 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaacm 3774 E (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri H. P. Mahajani ""यथ" क" ओर से/Respondent By : Shri Randhir Gupta सुनवाई क" तार"ख / : 24.02.2016 Date Of Hearing घोषणा क" तार"ख / : 24.05.2016 Date Of Pronouncement आदेश / O R D E R Per Sanjay Arora, A. M.: This Is An Appeal By The Assessee Directed Against The Order By The Commissioner Of Income Tax (Appeals)-5, Mumbai (‘Cit(A)’ For Short) Dated 18.1.2012, Dismissing The Assessee’S Appeal Contesting Its Assessment U/S.143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) For The Assessment Year (A.Y.) 2008-09 Vide Order Dated 30.12.2010. 2. The Background Facts The Facts Of The Case Are Simple & Undisputed. The Assessee-Company, Incorporated Under The Companies Act, 1956, Pursuant To A Shareholders’ Agreement Dated March

For Appellant: Shri H. P. MahajaniFor Respondent: Shri Randhir Gupta
Section 143(3)

…law (s.209). Rather, as explained by the Apex Court, they represent the crystallized accounting principles as recognized by the accounting policies and, further, those issued by ICAI are required to be followed [J.K. Industries Ltd. vs. Union of India [2008] 297 ITR 176 (SC)]. They provide discipline and harmonization of concepts and accounting principles; the objective being true and fair accounting. Accounting Standard (AS)-1 issued by ICAI, titled ‘Disclosure of accounting policies’, again, enlists accrual, along with ‘Going Concern’ and ‘Consistency’, as fundamental accounting assumptions that underlie the p…

M/S Hindustan Aeronautics Ltd vs. Addlc.I, .T., Bangalore

In the result, appeal of the assessee is partly allowed for statistical purpose

ITA 309/BANG/2013[2009-10]Status: DisposedITAT Bangalore22 Apr 2016AY 2009-10

Bench: Shri. Abraham P. George & Shri. Vijaypal Raoi.T.A No.309/Bang/2013 (Assessment Year : 2009-10) M/S. Hindustan Aeronautics Ltd, No.15/1, Cubbon Road, Bangalore 560 001 .. Appellant Pan : Aaach3641R V. Addl. Commissioner Of Income-Tax, Range - 11, Bangalore .. Respondent Assessee By : Shri. Praveen Kumar Prasad, Itp Revenue By : Shri. Sanjay Kumar, Cit -Iii Heard On : 17.03.2016 Pronounced On : 22.04.2016 O R D E R Per Abraham P. George:

For Appellant: Shri. Praveen Kumar Prasad, ITPFor Respondent: Shri. Sanjay Kumar, CIT -III

…opment of new combat aircrafts, helicopter and fighters ought to have been shown as work-in-progress till such time it could become marketable commodity. Relying on the decision of Hon'ble Apex Court in M/s. J. K. Industries Ltd and Another v. Union of India [297 ITR 176], AO was of the opinion that Rs.570,61,55,000/- being the grant received from the Government should be reduced from expenditure also. Such reduction resulted in an addition of the same sum to the total income returned by the assessee. 08. Aggrieved assessee moved in appeal before the CIT (A). Apart from reiterating the contentions taken before t…

New Holland Tractors (India) Private Limited

ITA/182/2002HC Delhi25 Sept 2014
Section 271(1)(c)

…ith expenditure to arrive at net income. Thereafter, reference was made to CIT versus Woodward Governor of India (P) Limited, (2009) 312 ITR 254, CIT versus Bilahari Investment (P) Limited, (2008) 299 ITR 1 and JK Industries versus Union of India, (2008) 297 ITR 176 on the matching concept. 10. When we apply the aforesaid legal principles to the factual matrix of the present case, it has to be held that the decision of the Tribunal affirming the orders of the tax authorities is correct and as per law. The parent company of appellant-assessee and Escorts had entered into joint ventureship in 1969 and…

The Commissioner of Income-Tax vs. Sri M.D. Yashodharan

In the result, the appeal fails

RP/196/2013HC Karnataka24 Sept 2013

Bench: B.MANOHAR,DILIP B.BHOSALE

Section 143(3)Section 260Section 260ASection 263

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF OCTOBER 2020 PRESENT THE HON’BLE MR. JUSTICE ALOK ARADHE AND THE HON’BLE MR. JUSTICE H.T.NARENDRA PRASAD I.T.A. NO.196 OF 2013 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX C.R.BUILDING QUEENS ROAD BANGALORE. 2. THE ASST. COMMISSIONER OF INCOME TAX CIRCLE - 11 (5) RASHTROTHANA BHAVAN NRUPATHUNGA ROAD BANGALORE. ... APPELLANTS (BY Mr.K.V.ARAVIND, ADV.,) AND: KARNATAKA POWER TRANSMISSION CORPORATION LTD., 7TH FLOOR, KAVERI BHAVAN K.G.ROAD BANGALORE - 560 009 ... RESPONDENT (BY Mr.K.K.CHYTHANYA, ADV.) - - -…

Commissioner of Income Tax (TDS) vs. M/s. Yashoda Super Speciality Hospital

ITTA/196/2013HC Telangana04 Jul 2013

National Agricultural Co-Operative Marketing Federagin of India Ltd vs. Commissioner of Income Tax Delhi XI & Anr

ITA/1096/2008HC Delhi03 Jun 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

…C.Gupta v. CIT (2008) 298 ITR 161; Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Navjivan Roller Flour and Pulse Mills Ltd. v. DCIT (2009) ITAs No.1096/2008, 1138/2008, & 1146/2008 Page 7 of 15 315 ITR 190 and J.K. Industries Ltd. v. UOI 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) 5. On the other hand, learned counsel for the Revenue submitted that it was only with the passing of award by the appellate authority on 14th September, 1990 that the interest was confirmed. She submitted that even the interest @ 18% from the date of award till the date of realisat…

National Agricultural Co-Operative Marketing Federation of India Ltd vs. Commissioner of Income Tax Delhi & Anr

ITA - 1146 / 2008HC Delhi03 Jun 2011

…he facts, which have been narrated above, are not in dispute. The question that needs to be decided is as to the liability of ![](_page_4_Picture_1.jpeg) ![](_page_5_Picture_1.jpeg) ![](_page_6_Picture_1.jpeg) 315 ITR 190 and *J.K. Industries Ltd. v. UOI* 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) - 5. On the other hand, learned counsel for the Revenue submitted that it was only with the passing of award by the appellate authority on 14th September, 1990 that the interest was confirmed. She submitted that even the interest @ 18% from the date of award till the date of realisation ac…

National Agricultural Co-Operative Marketing Federation of India Ltd vs. Commissioner of Income Tax Delhi XI & Anr

ITA - 1138 / 2008HC Delhi03 Jun 2011

…el also relied upon the cases of **R.C.Gupta v. CIT** (2008) 298 ITR 161: Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Navjivan Roller Flour and Pulse Mills Ltd. v. DCIT (2009) ![](_page_6_Picture_1.jpeg) 315 ITR 190 and *J.K. Industries Ltd. v. UOI* 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) - 5. On the other hand, learned counsel for the Revenue submitted that it was only with the passing of award by the appellate authority on 14th September, 1990 that the interest was confirmed. She submitted that even the interest @ 18% from the date of award till the date of realisation ac…

National Agricultural Co-Operative Marketing Federagin of India Ltd vs. Commissioner of Income Tax Delhi XI & Anr

ITA - 1096 / 2008HC Delhi03 Jun 2011

…008) 298 ITR 161; Bharat Earth Movers v. CIT (2000) 245 ITR 428 (SC); Navjivan Roller Flour and Pulse Mills Ltd. v. DCIT (2009) 2011:DHC:3136-DB ITAs No.1096/2008, 1138/2008, & 1146/2008 Page 7 of 15 315 ITR 190 and J.K. Industries Ltd. v. UOI 297 ITR 176. Faslika Electric Supply Co. v. CIT 143 ITR 551 (Delhi) 5. On the other hand, learned counsel for the Revenue submitted that it was only with the passing of award by the appellate authority on 14th September, 1990 that the interest was confirmed. She submitted that even the interest @ 18% from the date of award till the date of realisat…

Malayala Manorama Co Ltd vs. Commr.of Income Tax, Trivandrum

The appeals are allowed and the

C.A. No.-005420-005423 - 2002Supreme Court10 Apr 2008
For Respondent: Commissioner of Income Tax,Trivandrum
Section 115JSection 33Section 80Section 80V

…erred to follow the minority view and has ignored the majority view taken by two High Courts, namely the Kerala High Court as well as the M.P. High Court. Mr. Gulati also relied upon the case of J.K. Industries Ltd. v. Union of India (2008) 297 ITR 176 (SC). On proper analysis of the said case, we find that this case also does not help the Revenue. We have heard the learned counsel for the parties at length and carefully perused the written submissions filed by them. In our considered opinion, the controversy involved in this case is no longer res integra. A three Judge B…