Keshav Mills Ltd. v. CIT

23 ITR 230Supreme Court of India1953#1330 most cited

What is Keshav Mills Ltd. v. CIT authority for?

Income taxability depends on the real nature of the receipt and actual or constructive receipt of income, not merely on book entries. An amount is only "deemed to be received" if explicitly provided by the Income Tax Act, not by an assessee's unilateral intention.

86

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2008 to 2025.

Also referred to as

Keshav Mills Ltd. v. CIT · 23 ITR 230 · Section 4 · Section 5 · Section 147 · accrual of income · receipt of income · deemed receipt · book entries not conclusive · real nature of income · capital receipt · mercantile system of accounting

Sections most often in play

Section 147Section 148Section 142(1)Section 143(3)Section 5Section 144Section 271(1)(c)Section 4

Issues it is cited on

section 10(2)(xv)section 5(2)(b)section 10(2)section 10(1)section 4(1)section 5(2)mercantile system of accountingrule of consistencyprincipal officerright to receivesection 260asection 260

Judgments citing Keshav Mills Ltd. v. CIT

VALUZHATHIL PADMANABHAN SIVADASAN,THIRUVALLA vs. INCOME TAX OFFICER , WARD-2, THIRUVALLA

In the result, the appeal filed by the assessee stands allowed

ITA 770/COCH/2025[2015-16]Status: DisposedITAT Cochin21 Nov 2025AY 2015-16

Bench: Shri Inturi Rama Rao, Am Assessment Year: 2015-16 Valuzhathil Padmanabhan Sivadasan .......... Appellant Valuzhathil House, Kozhuvalloor, Thiruvalla [Pan: Akaps3606C] Vs. The Income Tax Officer, Ward-2, Thiruvalla .......... Respondent Assessee By: Shri Stephen George, Ar Revenue By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 06.11.2025 Date Of Pronouncement: 21.11.2025 O R D E R This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-2, Noida [Cit(A)] Dated 25.08.2025 For Assessment Year (Ay) 2015-16. 2. Brief Facts Of The Case Are That The Appellant Is A Non-Resident Indian. No Regular Return Of Income Under The Provisions Of Section 139(1) Of The Income Tax Act, 1961 (The Act) Was Filed By The Appellant. The Dcit (International Taxation) Lkn (Hereinafter Called "The Ao"), Based On The Information That The Appellant Made Term Deposits In Bank & Earned Interest Income Of Deposits, Formed An Opinion That Income Escaped Assessment To Tax. Accordingly, The 2 Valuzhathil Padmanabhan Sivadasan Ao Issued A Notice U/S. 148 Of The Act After Duly Complying The Provisions Of Section 148(A) Of The Act. In Response To The Notice U/S. 148, The Appellant Filed Return Of Income For Ay 2016-17 On 30.08.2022 Declaring Total Income Of Rs. 2,44,870/-. Against The Said Return Of Income, The Assessment Was Completed By The Ao Vide Order Dated 26.05.2023 Passed U/S. 147 R.W.S. 144C(3) Of The Act At Total Income Of Rs. 35,01,948/-. While Doing So, The Ao Brought To Tax The Income Of Salary Of Rs. 32,57,078/-.

For Appellant: Shri Stephen George, ARFor Respondent: Smt. Leena Lal, Sr. D.R
Section 139(1)Section 147Section 148Section 4(1)(a)

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM Assessment Year: 2015-16 Valuzhathil Padmanabhan Sivadasan .......... Appellant Valuzhathil House, Kozhuvalloor, Thiruvalla [PAN: AKAPS3606C] vs. The Income Tax Officer, Ward-2, Thiruvalla .......... Respondent Assessee by: Shri Stephen George, AR Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 06.11.2025 Date of Pronouncement: 21.11.2025 O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-2, Noida [CIT(A)] dated 25.08.2025 for Assessment Year (AY) 2015-16. 2.…

MOHAMMED KUTTY PUDUKKUDI,MALAPPURAM vs. ACIT,CENTRAL CIRCLE-2, KOZHIKODE

In the result, the appeal filed by the assessee stands allowed

ITA 774/COCH/2025[2013-14]Status: DisposedITAT Cochin19 Nov 2025AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri Manu Kumar Giri, Jm Assessment Year: 2013-14 Mohammed Kutty Pudukkudi .......... Appellant 4/61, Pudukkudi House, Ponmundam P.O. (Via) Tirur 676106 [Pan: Afepp4646J] Vs. Acit, Central Circle-2, Kozhikode ......... Respondent Assessee By: Shri C.B.M. Warrier, Ca Revenue By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 06.11.2025 Date Of Pronouncement: 19.11.2025

For Appellant: Shri C.B.M. Warrier, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 132Section 143(3)Section 153A

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI MANU KUMAR GIRI, JM Assessment Year: 2013-14 Mohammed Kutty Pudukkudi .......... Appellant 4/61, Pudukkudi House, Ponmundam P.O. (via) Tirur 676106 [PAN: AFEPP4646J] vs. ACIT, Central Circle-2, Kozhikode ......... Respondent Assessee by: Shri C.B.M. Warrier, CA Revenue by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 06.11.2025 Date of Pronouncement: 19.11.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-3, Kochi [CIT(A)…

WATERWORLD TOURISM COMPANY PRIVATE LIMITED,ALAPPUZHA vs. ITO WARD 1 & TPS, ALAPPUZHA

In the result, the appeal filed by the assessee stands allowed

ITA 726/COCH/2025[2018-19]Status: DisposedITAT Cochin19 Nov 2025AY 2018-19

Bench: Shri Inturi Rama Rao, Am & Shri Manu Kumar Giri, Jm Assessment Year: 2018-19 Water World Tourism Company Pvt. Ltd. .......... Appellant Room No. 18, Municipal Shopping Centre Zilla Court Ward, Opp. Boat Jetty Thathampally S.O., Alappuzha 688013 [Pan: Aabcm3387L] Vs. The Income Tax Officer, Wd-1& Tps, Alappuzha ......... Respondent Assessee By: Shri Thomas Joseph, Ca Revenue By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 04.11.2025 Date Of Pronouncement: 19.11.2025

For Appellant: Shri Thomas Joseph, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 115BSection 143(3)Section 68

…IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI MANU KUMAR GIRI, JM Assessment Year: 2018-19 Water World Tourism Company Pvt. Ltd. .......... Appellant Room No. 18, Municipal Shopping Centre Zilla Court Ward, Opp. Boat Jetty Thathampally S.O., Alappuzha 688013 [PAN: AABCM3387L] vs. The Income Tax Officer, WD-1& TPS, Alappuzha ......... Respondent Assessee by: Shri Thomas Joseph, CA Revenue by: Shri Sanjit Kumar Das, CIT-DR Date of Hearing: 04.11.2025 Date of Pronouncement: 19.11.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed ag…

HEMANT GORDHANBHAI PATEL,NADIAD vs. THE ACIT, INTL. TAXN., VADODARA

In the result, Ground No. 1 of the assessee’s appeal is allowed

ITA 1684/AHD/2024[2014-15]Status: DisposedITAT Ahmedabad26 May 2025AY 2014-15

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Divyakant Parikh, A.RFor Respondent: Shri Veerbadram Vislavath, Sr. DR
Section 147Section 250Section 69

…ly. Co. v. CIT [1931] 1 Comp Case 314 (Mad); CIT v. Diwan Bahadur S.L. Mathias [1939] 7 ITR 48 (PC). The observations made by the privy council in the above cases was quoted with approval by Hon'ble Supreme Court in the case of Keshav Mills Ltd. v. CIT [1953] 23 ITR 230 wherein it was held as follows :— "It was clear that under these circumstances there was no receipt of the moneys at all, either actual or constructive, in cash or in kind, by actual payment or by adjustment or settlement of accounts. There was also no scope for the argument that even though these sums might not be said to be either actually or co…

VMD ENTERPRISES P. LTD.,,CHENNAI vs. ACIT, CC-1(3), CHENNAI

In the result, the appeal filed by the assessee is allowed

ITA 1123/CHNY/2024[2016-17]Status: DisposedITAT Chennai22 Jan 2025AY 2016-17

Bench: Shri George George K & Shri Jagadishआयकर अपील सं./Ita No.1123/Chny/2024 िनधा"रण वष" /Assessment Year: 2016-17

For Appellant: Shri Y. Sridhar, FCAFor Respondent: Shri R. Clement Ramesh Kumar, CIT
Section 153CSection 2(47)Section 28

…f CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144 (SC) has held that taxability of income does not depend on its entry in the books of account, but on its real nature and accrual. The Hon’ble Supreme court in the case of Keshav Mills Ltd., v. CIT [1953] 23 ITR 230 (SC) has clarified that a mere book entry is not decisive for income tax purpose. The nature of compensation :- 6 -: depends on the context in which it was received and, if the compensation is linked to the termination of rights related to a capital asset it cannot be considered revenue receipt even if the assessee is in the land business. We the…

ITO, CORPORATE WARD1, COIMBATORE, COIMBATORE vs. CHERAN ENTERPRISES PRIVATE LIMITED, COIMBATORE

In the result the appeal of the revenue is allowed for statistical purposes only

ITA 1734/CHNY/2024[2014-15]Status: DisposedITAT Chennai23 Oct 2024AY 2014-15

Bench: Shri Ss Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./ Ita No.1717/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1730/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15 आयकर अपील सं./ Ita No.1733/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1734/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15

For Appellant: Shri Sharath Rao, CA & Mr.ShreyanshFor Respondent: Ms.Gouthami Manivasagam, JCIT
Section 142(1)Section 147Section 148Section 271(1)

…ingly, this ground of appeal of the assessee is partly allowed.” 8.4 Similar view was also reported to have been upheld in the following judicial precedents:  E. D. Sassoon And Company Ltd v. CIT 1954 AIR 470 (Supreme Court);  Keshav Mills Ltd v. CIT [1953] 23 ITR 230 (SC);  Ashokbhai Chimanbhai v. CIT [1965] 56 ITR 42 (SC);  DSL Enterprises (P.) Ltd. V. Mrs. N.C. Chandratre, ITO [2013] 35 taxmann.com 477 (Bombay High Court);  Sushil Thomas Abrahum v. CIT [2018] 93 taxmann.com 64 (Kerala High Court);  T.V. Patel (P.) Ltd. V. DCIT [2023] 157 taxmann.com 108 (Bombay High Court);  Govind Prasad Prabhu Nath v.…

ITO, CORPORATE WARD1, COIMBATORE vs. CHERAN ENTERPRISES PRIVATE LIMITED, COIMBATORE

In the result the appeal of the revenue is allowed for statistical purposes only

ITA 1733/CHNY/2024[2013-14]Status: DisposedITAT Chennai23 Oct 2024AY 2013-14

Bench: Shri Ss Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./ Ita No.1717/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1730/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15 आयकर अपील सं./ Ita No.1733/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1734/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15

For Appellant: Shri Sharath Rao, CA & Mr.ShreyanshFor Respondent: Ms.Gouthami Manivasagam, JCIT
Section 142(1)Section 147Section 148Section 271(1)

…ingly, this ground of appeal of the assessee is partly allowed.” 8.4 Similar view was also reported to have been upheld in the following judicial precedents:  E. D. Sassoon And Company Ltd v. CIT 1954 AIR 470 (Supreme Court);  Keshav Mills Ltd v. CIT [1953] 23 ITR 230 (SC);  Ashokbhai Chimanbhai v. CIT [1965] 56 ITR 42 (SC);  DSL Enterprises (P.) Ltd. V. Mrs. N.C. Chandratre, ITO [2013] 35 taxmann.com 477 (Bombay High Court);  Sushil Thomas Abrahum v. CIT [2018] 93 taxmann.com 64 (Kerala High Court);  T.V. Patel (P.) Ltd. V. DCIT [2023] 157 taxmann.com 108 (Bombay High Court);  Govind Prasad Prabhu Nath v.…

ITO, CORPORATEWARD1, COIMBATORE vs. CHERAN ENTERPRISES PRIVATE LIMITED, COIMBATORE

In the result the appeal of the revenue is allowed for statistical purposes only

ITA 1730/CHNY/2024[2014-15]Status: DisposedITAT Chennai23 Oct 2024AY 2014-15

Bench: Shri Ss Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./ Ita No.1717/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1730/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15 आयकर अपील सं./ Ita No.1733/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1734/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15

For Appellant: Shri Sharath Rao, CA & Mr.ShreyanshFor Respondent: Ms.Gouthami Manivasagam, JCIT
Section 142(1)Section 147Section 148Section 271(1)

…ingly, this ground of appeal of the assessee is partly allowed.” 8.4 Similar view was also reported to have been upheld in the following judicial precedents:  E. D. Sassoon And Company Ltd v. CIT 1954 AIR 470 (Supreme Court);  Keshav Mills Ltd v. CIT [1953] 23 ITR 230 (SC);  Ashokbhai Chimanbhai v. CIT [1965] 56 ITR 42 (SC);  DSL Enterprises (P.) Ltd. V. Mrs. N.C. Chandratre, ITO [2013] 35 taxmann.com 477 (Bombay High Court);  Sushil Thomas Abrahum v. CIT [2018] 93 taxmann.com 64 (Kerala High Court);  T.V. Patel (P.) Ltd. V. DCIT [2023] 157 taxmann.com 108 (Bombay High Court);  Govind Prasad Prabhu Nath v.…

ITO, CORPORATE WARD1, COIMBATORE vs. CHERAN ENTERPRISES PRIVATE LIMITED, COIMBATORE

In the result the appeal of the revenue is allowed for statistical purposes only

ITA 1717/CHNY/2024[2013-14]Status: DisposedITAT Chennai23 Oct 2024AY 2013-14

Bench: Shri Ss Viswanethra Ravi & Shri Amitabh Shuklaआयकर अपील सं./ Ita No.1717/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1730/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15 आयकर अपील सं./ Ita No.1733/Chny/2024, निर्धारण वर्ा /Assessment Years:2013-14 आयकर अपील सं./ Ita No.1734/Chny/2024, निर्धारण वर्ा /Assessment Years:2014-15

For Appellant: Shri Sharath Rao, CA & Mr.ShreyanshFor Respondent: Ms.Gouthami Manivasagam, JCIT
Section 142(1)Section 147Section 148Section 271(1)

…ingly, this ground of appeal of the assessee is partly allowed.” 8.4 Similar view was also reported to have been upheld in the following judicial precedents:  E. D. Sassoon And Company Ltd v. CIT 1954 AIR 470 (Supreme Court);  Keshav Mills Ltd v. CIT [1953] 23 ITR 230 (SC);  Ashokbhai Chimanbhai v. CIT [1965] 56 ITR 42 (SC);  DSL Enterprises (P.) Ltd. V. Mrs. N.C. Chandratre, ITO [2013] 35 taxmann.com 477 (Bombay High Court);  Sushil Thomas Abrahum v. CIT [2018] 93 taxmann.com 64 (Kerala High Court);  T.V. Patel (P.) Ltd. V. DCIT [2023] 157 taxmann.com 108 (Bombay High Court);  Govind Prasad Prabhu Nath v.…

SURANA MUTHA BHANSALI,PUNE vs. ACIT-CIRCLE 5 PUNE, PUNE

In the result, the appeal filed by the assessee is partly allowed

ITA 1442/PUN/2023[2017-18]Status: DisposedITAT Pune28 Jun 2024AY 2017-18

Bench: Shri R. K. Panda & Shri Vinay Bhamoreassessment Year : 2017-18

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri Sourabh Nayak, Addl.CIT
Section 143(2)Section 270A(1)Section 270A(9)Section 43CSection 80I

…hould be deducted in determining the taxable profits and gains of the appellant. The mercantile system of accounting is well-known and this method has been explained in a judgment of this Court in Keshav Mills Ltd. v. Commissioner of Income-tax, Bombay (1953) 23 ITR 230. " That system brings into credit what is due, immediately it becomes legally due and before it is actually received and it brings into debit expenditure the amount for which a legal liability has been incurred before it is actually disbursed." The main ground on which the claim of the appellant for deducting this sum of Rs.24,809 was disallowed b…

ACIT, CHENNAI vs. JOHNSON LIFTS PVT. LTD., CHENNAI

In the result the appeal is partly allowed

ITA 47/CHNY/2024[2016-17]Status: DisposedITAT Chennai31 May 2024AY 2016-17

Bench: Shri Aby T. Varkey, Jm & Shri Amitabh Shuklaआयकर अपील सं./Ita No.47/Chny/2024 & Ita No.48/Chny/2024 निर्धारण वर्ा /Assessment Year: 2016-17 & 2017-18

For Appellant: Shri R.Vijayaraghavan, AdvocateFor Respondent: Shri P.Sajit Kumar, JCIT
Section 32Section 36(1)(vii)Section 40Section 9

…ssesse received a non-refundable receipt. 3. The CIT(A) erred in allowing the spread over of such receipts considering the period of AMC coverage. 4. The ClT(A) ought to have followed the ratio laid down in decisions the case of Keshav Mills Ltd., Vs CIT (SC) 23 ITR 230, CIT Vs G.S.R Krishnamurthy (Mad) 202 ITR 393, that in Mercantile system profit arises/ accurse on the date of transaction i.e, the receipt of income refers to the first occasion when the recipient gets the money under his own control. ITA No.47/Chny/2024 & ITA No.48/Chny/2024 :- 3 -: 5. The CIT(A) erred in deleting the disallowance u/s 40(a)(i)…

SMT. PRATIMABEN V. RAJA,,RAJKOT vs. THE INCOME TAX OFFICER, INTL. TAXN., RAJKOT

In the result, Ground No. 1 of the assessee’s appeal is allowed

ITA 51/RJT/2018[2006-07]Status: DisposedITAT Rajkot20 Dec 2023AY 2006-07

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

For Appellant: Shri R. D. Lalchandani, A.RFor Respondent: Shri Shramdeep Sinha, CIT DR
Section 148Section 2(30)Section 68Section 69

…ly. Co. v. CIT [1931] 1 Comp Case 314 (Mad); CIT v. Diwan Bahadur S.L. Mathias [1939] 7 ITR 48 (PC). The observations made by the privy council in the above cases was quoted with approval by Hon'ble Supreme Court in the case of Keshav Mills Ltd. v. CIT [1953] 23 ITR 230 wherein it was held as follows :— "It was clear that under these circumstances there was no receipt of the moneys at all, either actual or constructive, in cash or in kind, by actual payment or by adjustment or settlement of accounts. There was also no scope for the argument that even though these sums might not be said to be either actually or co…

SHRI VINODKUMAR HIRALAL RAJA,,RAJKOT vs. THE INCOME TAX OFFICER, INTL. TAXN., RAJKOT

In the result, Ground No. 1 of the assessee’s appeal is allowed

ITA 50/RJT/2018[2006-07]Status: DisposedITAT Rajkot20 Dec 2023AY 2006-07

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

For Appellant: Shri R. D. Lalchandani, A.RFor Respondent: Shri Shramdeep Sinha, CIT DR
Section 148Section 2(30)Section 68Section 69

…ly. Co. v. CIT [1931] 1 Comp Case 314 (Mad); CIT v. Diwan Bahadur S.L. Mathias [1939] 7 ITR 48 (PC). The observations made by the privy council in the above cases was quoted with approval by Hon'ble Supreme Court in the case of Keshav Mills Ltd. v. CIT [1953] 23 ITR 230 wherein it was held as follows :— "It was clear that under these circumstances there was no receipt of the moneys at all, either actual or constructive, in cash or in kind, by actual payment or by adjustment or settlement of accounts. There was also no scope for the argument that even though these sums might not be said to be either actually or co…

M/S HIGH RANGE FOODS PRIVATE LTD,KOCHI vs. ITO CORPORATE WARD 1(3), KOCHI

In the result, the assessee’s appeal is partly allowed

ITA 22/COCH/2023[2015-16]Status: DisposedITAT Cochin11 Dec 2023AY 2015-16

Bench: Shri Sanjay Arora & Shri Manomohan Dashigh Range Foods Pvt. Ltd. The Income Tax Officer 28/3030, Cheruparambath Road Corporate Ward – 1(3) Vs. Kadavanthra, Kochi 682020 Kochi [Pan:Aaach6076L] (Appellant) (Respondent) Assessee By: Shri P.M. Veeramani, Ca Revenue By: Smt. J.M. Jamuna Devi, Sr. D.R. Date Of Hearing: 11.09.2023 Date Of Pronouncement: 11.12.2023 O R D E R Per Sanjay Arora, Am This Appeal By The Assessee Is Directed Against The Order Dated 28.06.2022 By The Commissioner Of Income Tax (Appeals), Nfac, Delhi [Cit(A)], Disallowing The Assessee’S Appeal Contesting It’S Assessment Under Section 143(3) Of The Income Tax Act, 1961 (‘The Act’) Dated 27.12.2017 For Assessment Year (Ay) 2015-16. 2. The Appeal, Filed On 09.01.2023, Is Delayed By 135 Days. The Condonation Petition Accompanying The Appeal, Which Is Supported By A Sworn Affidavit Dated 29.12.2022 By Shri Simon John, The Director & Principal Officer Of The Assessee- Company, Explains The Delay In Terms Of Non-Conveyance Of The Impugned Order Inasmuch As It’S Uploading On The Itba Was Not Accompanied By A Simultaneous Uploading On The Mobile Application As Well As A Real Time Alert Through Sms, As Required By Clause 11 Of The National Faceless Appeal Scheme (Nfas), So That The Order Cannot Be Regarded As Served On 28.6.2022, The Date Of The Impugned Order And

For Appellant: Shri P.M. Veeramani, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 41(1)

…, the ceasing of the assessee’s liability qua deposit is regarded as it’s income by Revenue. How, one wonders, being axiomatic, could that be disputed, signify as it does the right to receive, case law on which is legion, viz. Keshav Mills Ltd. vs. CIT (1953) 23 ITR 230 (SC) Turner Morrison & Co. Ltd. v. CIT [1953] 23 ITR 152 (SC) E.D.Sassoon & Co. Ltd. v. CIT[1954] 26 ITR 27 (SC) Morvi Industries Ltd. v. CIT[1971] 82 ITR 835 (SC) R.B. Jodha Mal Kuthiala v. CIT [1971] 82 ITR 570 (SC) CIT v. Excel Industries Ltd. [2013] 358 ITR 295 (SC) The amount having been already received, income arises to that extent; the ass…

PENNAR INDUSTRIES LIMITED,HYDERABAD vs. DCIT., CIRCLE-5(1), HYDERABAD

In the result, appeal filed by the assessee is allowed

ITA 477/HYD/2023[2018-19]Status: DisposedITAT Hyderabad22 Nov 2023AY 2018-19

Bench: Shri R.K. Panda, Vice- & Shri Laliet Kumarassessment Year: 2018-19 M/S. Pennar Industries Ltd Vs. Dy. Cit Hyderabad Circle 5(1) Hyderabad (Appellant) (Respondent) Pan:Aaecp5982F Assessee By: Shri Mohd.Afzal, Advocate Revenue By: Shri Ch V Gopinath,Cit(Dr)

For Appellant: Shri Mohd.Afzal, AdvocateFor Respondent: Shri CH V Gopinath,CIT(DR)
Section 36Section 36(1)

…finality as non-receipt. The application of Taparia Tools of Bombay High Court (TR 372 0605) is adopted only to the extent of revenue recognition under mercantile system of accounting. The judgment of Hon'ble Supreme Court in the case of Keshav Mills vs CIT (23 ITR 230) postulates the existence of tax in so far as monies due and payable by the parties to whom they are debited. The appellant here has adopted the unbilled revenue as sales while finalizing the account at the time of tax audit and contradicting the same while adopting ICDS scheme. Hence, per se this is a case of write off of bad debts. The condition…

SHRI SURESH GEORGE,ALAPPUZHA vs. THE ADIT INTERNATIONAL TAXATION, THIRUVANANTHAPURAM-3, THIRUVANATHAPURAM

In the result, the appeal by the assessee is allowed for statistical purposes

ITA 794/COCH/2022[2011-2012]Status: DisposedITAT Cochin16 Jun 2023AY 2011-2012

Bench: Shri Sanjay Arora & Shri Aby T.Varkeysuresh George Asstt. Director Of Income Tax Kurichyiel House International Taxation Payippad, Harippad Vs. Thiruvananthapuram Alappuzha 690 556 [Pan:Affpg5853B]

For Appellant: Shri Suresh Kumar Verma, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 142(1)Section 143(2)Section 143(3)Section 192Section 194JSection 9(1)Section 9(1)(vii)

…transfer of monies already received, so that it is only a capital transfer, and could not, for that reason, be regarded as a receipt in India, which signifies, quite clearly, and in terms of the settled law, the first receipt (Keshav Mills Ltd. v. CIT [1953] 23 ITR 230 (SC)). 4.3 Coming to Board Circular# 13/2017 (supra), the same is to be read not a laying down the law, but as giving effect to and in agreement with the incident provisions of law, and not as either dehors or in derogation thereof. The powers of the Board are constrained by the terms of its grant, which is toward proper administration of the Act…

LIFECELL INTERNATIONAL PVT LTD.,CHENNAI vs. ACIT, CHENNAI

In the result, appeal filed by the assessee is dismissed

ITA 3334/CHNY/2019[2016-17]Status: DisposedITAT Chennai04 Jan 2023AY 2016-17

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita No.: 3334/Chny/2019 िनधा"रण वष" / Assessment Year: 2016-17 M/S. Lifecell International Assistant Commissioner Of Private Ltd., V. Income Tax, No. 26, Vandalur Corporate Circle 4(1), Kelambakkam Main Road, Chennai. Keelakkottaiyur, Chennai. [Pan: Aaeca-7997-B] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri. Ajith Kumar Choradia, Ca ""यथ" क" ओर से/Respondent By : Shri. S. Senthil Kumaran, Cit सुनवाई की तारीख/Date Of Hearing : 23.11.2022 घोषणा की तारीख/Date Of Pronouncement : 04.01.2023 आदेश /O R D E R

For Appellant: Shri. Ajith Kumar Choradia, CAFor Respondent: Shri. S. Senthil Kumaran, CIT

…d. The profits earned and credited in the books of account constitute the basis of computation of income. The system postulates the existence of tax insofar as monies due and payable by the parties to whom they are debited [see Keshav Mills Ltd. v. CIT [1953] 23 ITR 230 , 239 (SC)]. Therefore, under the Mercantile System of Accounting, in order to determine the net income of an accounting year, the revenue and other incomes are matched with the cost of resources consumed [expenses]. Under the mercantile system of :-20-: ITA. No:3334/Chny/2019 accounting, this matching is required to be done on accrual basis. Un…

RITA MANCHHANI ,JABALPUR vs. PR. CIT-1 JABALPUR, JABALPUR

In the result, the assessee‘s appeal is dismissed on the afore-said terms

ITA 19/JAB/2021[2015-16]Status: DisposedITAT Jabalpur29 Nov 2022AY 2015-16

Bench: Shri Sanjay Arora, Hon‘Ble & Shri Manomohan Das, Hon'Ble

For Appellant: Shri Rahul Bardia, FCAFor Respondent: Shri Sanjay Kumar, CIT-DR
Section 143(3)Section 263Section 56(2)(vii)

…rty took place in the year 2013 when the provision of sub-cl.(ii) in s. 56(2)(vii)(b) was not in existence.‖ We could not agree more. The taxable event u/s. 56(2)(vii) is the ‗receipt‘ of the subject property. The Apex Court in Keshav Mills Ltd. v. CIT [1953] 23 ITR 230 6 | P a g e Rita Manchhani v. Pr. CIT (SC), explained the concept of receipt in terms of gaining control over the subject property. The payment of full consideration is in fact not a condition even for sale under the Transfer of Property Act, 1982 (s.54). In fact, a part of the price, as Rs. 94 lakhs by the assessee, stood paid even after the reg…

HAJARIMAL MISHRIMAL BAFANA vs. ADDITIONAL COMMISSIONER OF INCOME TAX RANGE,

In the result, the assessee’s appeal for AY 2004-05 is dismissed, and that of AY 2005-06 is partly allowed

ITA 176/JAB/2016[2005-06]Status: DisposedITAT Jabalpur29 Nov 2022AY 2005-06

Bench: Shri Sanjay Arora, Hon’Ble & Shri Manomohan Das, Hon'Ble

For Appellant: NoneFor Respondent: Shri Ravi Mehrotra Sr. DR
Section 142(1)Section 143(3)Section 254(2)Section 43B

…dant case-law toward the law in the matter, viz. Rakesh Shantilal Mardia v. Dy. CIT [2012] 210 Taxman 565 (SC) Kedarnath jute Manufacturing Co. Ltd. v. CIT [1971] 82 ITR 363 (SC) Laxmipat Singhania v. CIT [1969] 72 ITR 291 (SC) Keshav Mills Ltd. v. CIT [1953] 23 ITR 230, 239 (SC) J&K industries Ltd. [2007] 13 Scale 204 (SC) CIT v. Kerala Financial Corporation Ltd. [1985] 155 ITR 246 (Ker.) 7 | P a g e ITA Nos. 175 &176/JAB/2016 (A.Yrs. 2004-05 & 2005-06) Hajarimal Mishrimal Bafna v. Addl. CIT P. Mariappa Gounder v. CIT [1984] 147 ITR 676 (Mad.) 7.2 Income, which is by definition only net of expenses, is to be…

ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 1(4), BENGALURU vs. M/S SNOWSHINE REALTORS PVT.LTD. , BENGALURU

In the result, the revenue appeals in ITA Nos

ITA 1443/BANG/2018[2008-09]Status: DisposedITAT Bangalore28 Oct 2022AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariita Nos.1441 & 1442/Bang/2018 Assessment Year: 2009-10 & 2012-13 Acit Central Circle- M/S. Kansur Developers India Pvt. Ltd. 1(4) No.2650, Ground Floor Bengaluru Vs. 37Th B Cross, 28Th Main, 9Th Block Jayanagar Bangalore 560 009 Pan No : Aacck9866F Appellant Respondent C.O. Nos.103&104/Bang/2018 (Arising Out Of Ita Nos.1441 & 1442/Bang/2018) Assessment Years: 2009-10 & 2012-13

For Appellant: Shri Dilip, Junior Standing Counsel forFor Respondent: Dept
Section 147

…urt in the case of ITA Nos.1441 & 1442/Bang/2018 & CO 103 & 104/Bang/2018 ITA No.1443/Bang/2018 & CO No.105/Bang/2018 M/s. Kansur Developers India Pvt. Ltd., Bangalore M/s. Snowshine Realtors Pvt. Ltd., Bangalore Page 37 of 49 Keshav Mills Ltd. V. CIT (1953) 23 ITR 230 (Supreme Court of India) if such income is shown in the books of account then it cannot be taxed in India merely because the assessee is unable to prove the source of such entry. For example, there may be appearing an entry of cash credit in the name of a person of USA by way of loan received through cheque and deposited in the bank account mainta…

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