Morvi Industries Ltd. v. CIT

82 ITR 835Supreme Court of India1971#748 most cited

What is Morvi Industries Ltd. v. CIT authority for?

Income accrues when it becomes due, vesting the assessee with the right to claim the amount, even if payment is not immediate. It requires a corresponding liability from the other party to pay, emphasizing real rather than hypothetical accrual, particularly for assessees using the mercantile system of accounting.

136

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2010 to 2025.

Also referred to as

Morvi Industries Ltd. v. CIT · accrual of income · real income principle · mercantile system of accounting · right to receive income · income becomes due · corresponding liability to pay · taxability timing · date of payment irrelevant to accrual

Also reported as

4 SCC 451

Sections most often in play

Section 1908Section 1961Section 143(3)Section 45(1)Section 48Section 143(1)Section 144Section 147

Issues it is cited on

right to receivejdasection 48section 45section 17mercantile system of accountingdouble taxationprevious yearincome from other sourcestransfercompanysection 142(1)

Judgments citing Morvi Industries Ltd. v. CIT

VIJAYRAGHAVAN SUBRAMANIAN IYER,MUMBAI vs. INCOME TAX OFFICER 27 3 5 MUMBAI, MUMBAI

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

ITA 3465/MUM/2025[2014-15]Status: DisposedITAT Mumbai25 Nov 2025AY 2014-15

Bench: Shri Sandeep Gosain

Section 198Section 250

….." (p. 720) The said view was approved by this Court in Birla Gwalior (P.) Ltd.'s case (supra) where the assessee maintained its accounts on the mercantile system. In that case this Court, after referring to the decision in Morvi Industries Ltd. v. CIT[1971] 82 ITR 835 , which was also a case where the accounts were maintained on mercantile system, has said: "Hence it is clear that this court in Morvi Industries case did emphasise the fact that the real question for decision was whether the income had really accrued or not. It is not a hypothetical accrual of income that has got to be taken into consideration bu…

OM PRAKASH GUPTA,SAWAI MADHOPUR vs. DCIT CENTRAL CIRCLE -1, JAIPUR

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

…viously neither accrual nor receipt of income, even though\nan entry to that effect might, in certain circumstances, have been made in\nthe books of account.\"\n\n18. The above passage was cited with approval in Morvi Industries Ltd. v. CIT\n(Central), [1971] 82 ITR 835 (SC) in which this Court also considered the\ndictionary meaning of the word \"accrue\" and held that income can be said to\naccrue when it becomes due. It was then observed that: \"....... the date of\npayment ....... does not affect the accrual of income. The moment the income\naccrues, the assessee gets vested with the right to claim that amoun…

DEVI DAYAL,KAITHAL vs. INCOME TAX OFFICER, WARD-1 , KAITHAL

In the result, appeal is allowed

ITA 899/CHANDI/2024[2008-09]Status: DisposedITAT Chandigarh08 Sept 2025AY 2008-09

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 899/Chd/2024 "नधा"रण वष" / Assessment Year: 2008-09 Shri Devi Dayal, Vs The Ito, Pundri Anaj Mandi, Ward – 1, Kaithal-Haryana 136026. Kaithal. "थायी लेखा सं./Pan No: Aajpd5851H अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Parikshit Aggarwal, Ca & Ms. Shruti Khandelwal, Advocate Revenue By : Shri Manav Bansal, Cit, Dr Date Of Hearing : 30.07.2025 Date Of Pronouncement : 08.09.2025

For Appellant: Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR
Section 249Section 253Section 3Section 5

…आयकर अपील"य अ"धकरण,च"डीगढ़ "यायपीठ, च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 899/CHD/2024 "नधा"रण वष" / Assessment Year: 2008-09 Shri Devi Dayal, Vs The ITO, Pundri Anaj Mandi, Ward – 1, Kaithal-Haryana 136026. Kaithal. "थायी लेखा सं./PAN NO: AAJPD5851H अपीलाथ"/Appellant ""यथ"/Respondent Assessee by : Shri Parikshit Aggarwal, CA and Ms. Shruti Khandelwal, Advocate Revenue by : Shri Manav Bansal, CIT, DR Date of Hearing : 30.07.2025 Date of Pronouncement : 08.09.2025 P…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER Assessment Year: 2016-17 Vs. M/s. ACIT, Hansdeep Industries C.R. Building, and 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 PER SATBEER SINGH GODARA, JM This Revenue’s appeal for assessment year 2016-17, a…

DCIT, CIRCLE-1(1), HYDERABAD, HYDERABAD vs. PRAKASH NIMMAGADDA, HYDERABAD, SECUNDERABAD

In the result, appeal filed by the Revenue is dismissed

ITA 974/HYD/2017[2008-09]Status: DisposedITAT Hyderabad16 Dec 2024AY 2008-09

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita No.974/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2008-09) Dy.Cit Vs. Shri Prakash Nimmagadda Circle 1(1) Hyderabad Hyderabad Pan:Acbpn4246R (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri K.C. Devdas, Ca राज" व "ारा/Revenue By:: Dr. Meghnath Chowhan, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 06/11/2024 घोषणा की तारीख/Pronouncement: 16/12/2024 आदेश/Order Per Vijay Pal Raothis Appeal Filed By The Revenue Is Directed Against The Order, Dated 20/03/2017 Of The Learned Cit (A)-9, Hyderabad, Relating To A.Y.2008-09. 2. The Revenue Has Raised The Following Grounds:

For Appellant: Shri K.C. Devdas, CAFor Respondent: : Dr. Meghnath Chowhan, CIT(DR)
Section 17(2)(c)Section 28

…e 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 account." 18. The above passage was cited with approval in Morvi Industries Ltd. v. CIT (Central), [1971] 82 ITR 835 (SC) in which this Court also considered the dictionary meaning of the word "accrue" and held that income can be said to accrue when it becomes due. It was then observed that: "....... the date of payment ....... does not affect the accrual of income. The moment the income accrues, the assessee gets vested with the right to claim that amount even…

SIMOCO SYSTEMS AND INFRASTRUCTURE SOLUTIONS LIMITED,KOLKATA vs. ITO WARD 2 (1), KOLKATA

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

ITA 123/KOL/2024[2018-19]Status: DisposedITAT Kolkata29 Nov 2024AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishraassessment Year: 2018-19

For Appellant: Indranil Banerjee, ARFor Respondent: Ankur Goyal, JCIT, Sr. DR
Section 115JSection 133(6)Section 143(3)Section 144BSection 250

…of interest and as it has not been charged due business expediency, interest cannot assessed on notional basis. Lastly, it is a settled law, vide CIT vs. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 (SC), Morvi Industries Ltd. vs. CIT 1974 CTR (SC) 149: (1971) 82 ITR 835 (SC), Godhra Electricity Co. Ltd. vs. CIT (1997) 139 CTR (SC) 564: (1997) 225 ITR 746 (SC) and State Bank of Travancore vs. CIT (1986) 50 CTR (SC) 290: (1986) 158 ITR 102 (SC) that Income accrues when it becomes due but it must also be accompanied by a corresponding liability of the other party to pay the amount. Only then can it be said that for…

DCIT, NEW DELHI vs. M/S HUDCO LTD.,, NEW DELHI

In the result, the appeal of the revenue in ITA No

ITA 3904/DEL/2015[2010-11]Status: DisposedITAT Delhi04 Nov 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Waseem Arshad, CIT DR &
Section 143(3)

…is obviously neither accrual not receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account. " 18. "The above passage was cited with approval in Morvi Industries Ltd. v. CIT (Central), [1971] 82 ITR 835 (SC) in which this Court also considered the dictionary meaning of the word "accrue" and held that income can be said to accrue when it becomes due. It was then observed that: .....the date of payment ............does not affect the accrual of income. The moment the income accrues, the assessee get vested with the right to claim that amount even t…

M/S. HOUSING & URBAN DEVELOPMENT CORPORATION LTD. (HUDCO),NEW DELHI vs. ADDL. CIT, NEW DELHI

In the result, the appeal of the revenue in ITA No

ITA 3261/DEL/2015[2010-11]Status: DisposedITAT Delhi04 Nov 2024AY 2010-11

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.

For Appellant: Shri Gagan Kumar, AdvFor Respondent: Shri Waseem Arshad, CIT DR &
Section 143(3)

…is obviously neither accrual not receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account. " 18. "The above passage was cited with approval in Morvi Industries Ltd. v. CIT (Central), [1971] 82 ITR 835 (SC) in which this Court also considered the dictionary meaning of the word "accrue" and held that income can be said to accrue when it becomes due. It was then observed that: .....the date of payment ............does not affect the accrual of income. The moment the income accrues, the assessee get vested with the right to claim that amount even t…

VENKAT RAJASEKHAR KONERU,HYDERABAD vs. ACIT, CENTRAL CIRCLE-1(1), HYDERABAD

In the result, all the appeals of the assessees are dismissed

ITA 627/HYD/2022[2016-17]Status: DisposedITAT Hyderabad22 Oct 2024AY 2016-17

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M. Chandramouleswara RaoFor Respondent: Shri Srinath Sadanala, Sr.AR
Section 132Section 139(4)Section 142(1)Section 143(2)Section 153C

…hough an entry to that effect might, in certain circumstances, have been made in the books of account.” 15. The above passage was cited with approval in Morvi Industries Ltd. v. CIT [Morvi Industries Ltd. v. CIT, (1972) 4 SCC 451 : 1974 SCC (Tax) 140 : (1971) 82 ITR 835] in which this Court also considered the dictionary meaning of the word “accrue” and held that income can be said to accrue when it becomes due. It was then observed that: (SCC p. 454, para 11) “11. … the date of payment … does not affect the accrual of income. The moment the income accrues, the assessee gets vested with the right to claim that am…

PRAMOD REDDY TEKULA,HYDERABAD vs. ACIT,CENTRAL CIRCLE-1(1), HYDERABAD

In the result, all the appeals of the assessees are dismissed

ITA 611/HYD/2022[2016-17]Status: DisposedITAT Hyderabad22 Oct 2024AY 2016-17

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M. Chandramouleswara RaoFor Respondent: Shri Srinath Sadanala, Sr.AR
Section 132Section 139(4)Section 142(1)Section 143(2)Section 153C

…hough an entry to that effect might, in certain circumstances, have been made in the books of account.” 15. The above passage was cited with approval in Morvi Industries Ltd. v. CIT [Morvi Industries Ltd. v. CIT, (1972) 4 SCC 451 : 1974 SCC (Tax) 140 : (1971) 82 ITR 835] in which this Court also considered the dictionary meaning of the word “accrue” and held that income can be said to accrue when it becomes due. It was then observed that: (SCC p. 454, para 11) “11. … the date of payment … does not affect the accrual of income. The moment the income accrues, the assessee gets vested with the right to claim that am…

BANDI SUDHEER REDDY ,HYDERABAD vs. ACIT, CENTRAL CIRCLE-1(4), HYDERABAD

In the result, all the appeals of the assessees are dismissed

ITA 610/HYD/2022[2016-17]Status: DisposedITAT Hyderabad22 Oct 2024AY 2016-17

Bench: Shri Laliet Kumar, Hon’Ble & Shri G. Manjunatha, Hon’Ble

For Appellant: Shri M. Chandramouleswara RaoFor Respondent: Shri Srinath Sadanala, Sr.AR
Section 132Section 139(4)Section 142(1)Section 143(2)Section 153C

…hough an entry to that effect might, in certain circumstances, have been made in the books of account.” 15. The above passage was cited with approval in Morvi Industries Ltd. v. CIT [Morvi Industries Ltd. v. CIT, (1972) 4 SCC 451 : 1974 SCC (Tax) 140 : (1971) 82 ITR 835] in which this Court also considered the dictionary meaning of the word “accrue” and held that income can be said to accrue when it becomes due. It was then observed that: (SCC p. 454, para 11) “11. … the date of payment … does not affect the accrual of income. The moment the income accrues, the assessee gets vested with the right to claim that am…

LORAMITRA RATH,KAIRAPARI KOTSAHI, TANGI vs. DCIT (CIRCLE-1(1), CUTTACK

The appeal is allowed

ITA 314/CTK/2023[2015-16]Status: HeardITAT Cuttack05 Sept 2024AY 2015-16

Bench: Before Shri George Mathan, Judicial & Manish Agarwal Manish Agarwalassessment Year : 2015-16 Loramitra Loramitra Rath, Rath, Kairapari Kairapari Vs. Dcit, Circle Dcit, Circle-1(1), Kotsahi, Tangi, Cuttack Kotsahi, Tangi, Cuttack Cuttack Pan/Gir No. No.Aebpr 6065 H (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : Shri Purnendhu Bhusan Mohanty, Ca Purnendhu Bhusan Mohanty, Ca Revenue By : Shri S.C.Mohanty, Sr S.C.Mohanty, Sr Dr

For Appellant: Shri Purnendhu Bhusan Mohanty, CAFor Respondent: Shri S.C.Mohanty, Sr
Section 48

…income have been laid down from time-to-time by various Courts including the Supreme Court, eg. CIT vs. Ahmedblan Umarbhay & Co. 18 ITR 472 (SC), Indermoni Jatia vs. CIT 35 ITR 298 (SC), CIT . A. Gajapathy Naidu 53 ITR 114(SC) and Morvi Industries Lid vs. CIT 82 ITR 835 (SC), however, where income cannot be said to have resulted at all, there is neither accrual nor receipt of income, even though an entry might have been made in the books of account as held in CIT vs. Shoorji Fallablulas & Co. 46 IT'R 144 (SC). In the decision of CIT vs. Sitaldar Tirathdas 41 ITR 367, Hon'ble Supreme Court has ruled that what is t…

PRAGATI POWER CORPORATION LTD,NEW DELHI vs. ACIT, CIRCLE 20(1), NEW DELHI

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 1617/DEL/2023[2018-19]Status: DisposedITAT Delhi14 Aug 2024AY 2018-19

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

Section 115JSection 145(2)Section 32Section 36Section 36(1)(iii)Section 37Section 43ASection 46ASection 80I

…vs CIT (1997) 225 ITR 746 (SC), Supreme Court relied upon the following cases:- CIT vs Shoorji Ballabhdas & Co. (1962) 46 ITR 144 (SC) Pragati Power Corporation vs. ACIT CIT vs Birla Gwalior (P) Ltd. (1973) 89 ITR 266 (SC) Morvi Industies Ltd. vs CIT (1971) 82 ITR 835 (SC) Poona Electric Supply Company Ltd. vs CIT(1965) 57 ITR 521 (SC) Kashiparekh (H.M.) & Co. Ltd. vs CIT (1960) 39 ITR 706 (Bom) State Bank of Travencore vs CIT(1986) 158 ITR 102 (Ker) Supreme Court held in this case that the question, whether there was real accrual of income to the assessee Co. in respect of the enhanced charges for supply of el…

HUNTSMAN INVESTMENTS (NETHERLANDS),MUMBAI vs. THE DY COMMISSIONER OF INCOME TAX INTERNATIONAL TAX CIRCLE-2(2)(2), MUMBAI, MUMBAI

ITA 4222/MUM/2023[2021-22]Status: DisposedITAT Mumbai31 Jul 2024AY 2021-22

Bench: Shri Anikesh Banerjee & Miss. Padmavathy S.

Section 143(3)Section 144C(13)Section 144C(5)Section 234ASection 234B

…eceived. Therefore, it is not a case where any consideration out of Rs.20 crores or part thereof (after reducing Rs.2.70 crores) has been received or has accrued to the respondent- assessee. As observed by the Apex Court in Morvi Industries Ltd. v. C7T [19711 82 ITR 835. "The income can be said to accrue when it becomes due.... The moment the income accrues, theassessee gets vested right to claim that amount, even though not immediately." In fact the application of the formula in the agreement dated 25th January, 2006 itself makes the amount which is receivable as deferred consideration contingent upon the profit…

INCOME TAX OFFICER, WARD-2, PANVEL, RAIGAD vs. SHEKHAR GAJANAN WANI, PANVEL

Appeal is allowed in above terms

ITA 41/PUN/2023[2010-11]Status: DisposedITAT Pune26 Apr 2024AY 2010-11

Bench: Shri Satbeer Singh Godara & Dr. Dipak P. Ripote

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Shri Sourabh Nayak, Addl. CIT
Section 143(3)

…issue relies upon the following decisions with relevant legal propositions discussed in brief. (i) CIT -vs- Shoorji Vallabhdas & Co., 46 ITR 144 (SC) Liability to income tax is only on accrual of income and not otherwise. (ii) Morvi Industries Ltd. -vs- CIT, 82 ITR 835 (SC) Income accrues only when it becomes due. The recipient of such income should have completed all obligations undertaken. 23 ITA.No.41/PUN./2023 (iii) Pr. CIT -vs- Rohan Projects, 113 taxmann.com 339 (Bombay) Where assessee had sold a land but certain obligations were not completed, it was held that income would arise only on completion of suc…

PR. COMMISSIONER OF INCOME TAX-2, DELHI vs. M/S BHISHANSAROOP RAM

ITA/953/2019HC Delhi28 Mar 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

…e was made in this context to CIT v. Birla Gwalior (P) Ltd. [(1974) 3 SCC 196 : 1973 SCC (Tax) 519 : (1973) 89 ITR 266], wherein it was held, after referring to Morvi Industries [Morvi Industries Ltd. v. CIT, (1972) 4 SCC 451 : 1974 SCC (Tax) 140 : (1971) 82 ITR 835] that real accrual of income and not a hypothetical accrual of income ought to be taken into consideration. For a similar conclusion, reference was made to Poona Electric Supply Co. Ltd. v. CIT [(1965) 57 ITR 521 (SC)] wherein it was held that income tax is a tax on real income. 21. Finally in Godhra Electricity case [Godhra Electricity Co.…

K P MUHAMMED ALI,CALICUT vs. ITO ( INTERNATIONAL TAXATION), KOZHIKODE

In the result, the assessee’s appeal is partly allowed for statistical purposes

ITA 1008/COCH/2022[2012-13]Status: DisposedITAT Cochin12 Jan 2024AY 2012-13

Bench: Shri Sanjay Arora & Manomohan Dask.P. Muhammed Ali Income Tax Officer K.P. House: 19/1866 (International Taxation) Chalappuram Vs. Kozhikode Calicut 673002 [Pan:Agnpm9397F] (Appellant) (Respondent)

For Appellant: Shri Raghunathan Palakkal, AdvocateFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 2(47)Section 2(47)(vi)Section 53A

…eading to the Hon'ble Apex Court finding that there was in fact no accrual of 7 K.P. Muhammed Ali v. ITO income, placing reliance for the purpose on the decisions in E.D. Sasoon and Co. Ltd. v. CIT [1954] 26 ITR 27, 51(SC); Morvi Industries Ltd. v. CIT [1971] 82 ITR 835 (SC); and CIT v. Excel Industries Ltd. [2013] 358 ITR 295 (SC), also reproducing there-from. That is to say, the same turned on the basis of an absence of any real income. As regards s. 2(47)(vi), also pleaded, though found inapplicable in that case, the same, as a reading of the judgement would show, was in view of the peculiar facts of the case,…

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)

…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 assessee acquiring a dominion or unqualified right over the same. That the assessee may not have appropriated it as it’s income in it’s accounts is another matter…

M/S BELLARY IRON-ORES PRIVATE LIMITED ,BELLARY vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1 , BELLARY

ITA 15/BANG/2019[2015-16]Status: DisposedITAT Bangalore20 Sept 2023AY 2015-16

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year: 2014-15

For Appellant: Shri Shivprasad Reddy, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 102Section 139(1)Section 173Section 194ASection 226(3)

…. The assessee is following the mercantile system of accounting and following the same, income to the extent of the interest on the FDs has accrued following the decision of the Hon'ble Supreme Court in the case of M/s. Morvi Industries Limited vs. CIT [1971] 82 ITR 835 (SC). 4. The ld. A.R. submitted that income tax is a tax on income and the definition of income in section 2(24) is still an inclusive definition, though exhaustive to a large extent. Section 4 provides for charge of income tax, whereas section 5 provides for scope of total income. The ITA No.1540/Bang/2018 & M/s. Bellary Iron Ores Pvt. Ltd., Bel…

M/S BELLARY IRON-ORES PVT LTD ,BELLARY vs. THE INCOME TAX OFFICER WARD-2 , HOSPET

ITA 1540/BANG/2018[2014-15]Status: DisposedITAT Bangalore20 Sept 2023AY 2014-15

Bench: Shri Chandra Poojari & Ms. Madhumita Royassessment Year: 2014-15

For Appellant: Shri Shivprasad Reddy, A.RFor Respondent: Shri D.K. Mishra, D.R
Section 102Section 139(1)Section 173Section 194ASection 226(3)

…. The assessee is following the mercantile system of accounting and following the same, income to the extent of the interest on the FDs has accrued following the decision of the Hon'ble Supreme Court in the case of M/s. Morvi Industries Limited vs. CIT [1971] 82 ITR 835 (SC). 4. The ld. A.R. submitted that income tax is a tax on income and the definition of income in section 2(24) is still an inclusive definition, though exhaustive to a large extent. Section 4 provides for charge of income tax, whereas section 5 provides for scope of total income. The ITA No.1540/Bang/2018 & M/s. Bellary Iron Ores Pvt. Ltd., Bel…

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Morvi Industries Ltd. v. CIT (82 ITR 835) — Cited in 136 Judgments | BharatTax