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 366,459 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
Read the full judgment

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

Uniworth Limited, Kolkata vs. DCIT, Circle - 11, Kolkata

In the result, appeals filed by the assessee in ITA No

ITA 2552/KOL/2017[2003-04]Status: DisposedITAT Kolkata20 Jan 2020AY 2003-04

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

For Appellant: Shri N.M. Bhansali, AdvocateFor Respondent: Shri Supriyo Pal, JCIT, Sr. DR
Section 143(1)Section 143(3)Section 147Section 148

…upport of this principle, reliance was placed upon CIT v. Birla Gwalior (P.) Ltd. [1973] 89 ITR 266 (SC) which approved the view taken by the Bombay High Court in H.M. Kashiparekh & Co. Ltd. v. CIT [1960] 39 ITR 706 (Bom.), Morvi Industries Ltd. v. CIT [1971] 82 ITR 835 (SC) as well as Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC). In the penultimate paragraph of the judgment, the Supreme Court held as follows :— "The question whether there was real accrual of income to the assessee-company in respect of the enhanced charges for supply of electricity has to be considered by taking the probability o…

M/S. Religare Securities Ltd., New Delhi vs. ACIT, New Delhi

The appeal of the assessee stands allowed in terms of our directions contained in the preceding

ITA 2282/DEL/2013[2008-09]Status: DisposedITAT Delhi13 Dec 2019AY 2008-09

Bench: Shri N.K. Billaiya & Shri Sudhanshu Srivastavaasstt. Year: 2008-09

For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Smt. Sulekha Verma, CIT(DR)
Section 143(1)Section 14ASection 28Section 36Section 36(1)(ii)Section 37(1)

…rtain circumstances, have been made in the books of account. " 51 M/s. Religare Securities Ltd. vs ACIT 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…

M/S. Simpson Unitech Wireless (P) Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeals of the assessees are allowed and the appeal of the Revenue is dismissed

ITA 1953/DEL/2014[2009-10]Status: DisposedITAT Delhi08 Nov 2019AY 2009-10

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: Shri Salil Agrawal, Adv. ShriFor Respondent: Shri S.S. Rana CIT-DR
Section 28Section 3

…aterialize and its money value is therefore not the income of the assessee.” In arriving the aforesaid conclusion, their Lordships relied on the following judgments of the Hon’ble Supreme Court: ii) 46 ITR 144 (SC) CIT vs. Shoorji Vallabhdas and Company iii) 82 ITR 835 (SC) Morvi Industries Ltd. vs. CIT iv) 158 ITR 102 (SC) State Bank of Travancore vs. CIT v) In the above judgment, it is clearly stated that income tax cannot be levied on hypothetical income. The income tax is a tax on real income and there cannot be a tax if income does not result at all. In the said case the court took the view that, the proba…

M/S. Acorus Unitech Wireless Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessees are allowed and the appeal of the Revenue is dismissed

ITA 2989/DEL/2017[2009-10]Status: DisposedITAT Delhi08 Nov 2019AY 2009-10

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: Shri Salil Agrawal, Adv. ShriFor Respondent: Shri S.S. Rana CIT-DR
Section 28Section 3

…aterialize and its money value is therefore not the income of the assessee.” In arriving the aforesaid conclusion, their Lordships relied on the following judgments of the Hon’ble Supreme Court: ii) 46 ITR 144 (SC) CIT vs. Shoorji Vallabhdas and Company iii) 82 ITR 835 (SC) Morvi Industries Ltd. vs. CIT iv) 158 ITR 102 (SC) State Bank of Travancore vs. CIT v) In the above judgment, it is clearly stated that income tax cannot be levied on hypothetical income. The income tax is a tax on real income and there cannot be a tax if income does not result at all. In the said case the court took the view that, the proba…

DCIT, New Delhi vs. M/S. Acorus Wireless Unitech Pvt. Ltd., New Delhi

In the result, the appeals of the assessees are allowed and the appeal of the Revenue is dismissed

ITA 2075/DEL/2017[2009-10]Status: DisposedITAT Delhi08 Nov 2019AY 2009-10

Bench: Shri Amit Shukla & Shri Dr. B.R.R. Kumar

For Appellant: Shri Salil Agrawal, Adv. ShriFor Respondent: Shri S.S. Rana CIT-DR
Section 28Section 3

…aterialize and its money value is therefore not the income of the assessee.” In arriving the aforesaid conclusion, their Lordships relied on the following judgments of the Hon’ble Supreme Court: ii) 46 ITR 144 (SC) CIT vs. Shoorji Vallabhdas and Company iii) 82 ITR 835 (SC) Morvi Industries Ltd. vs. CIT iv) 158 ITR 102 (SC) State Bank of Travancore vs. CIT v) In the above judgment, it is clearly stated that income tax cannot be levied on hypothetical income. The income tax is a tax on real income and there cannot be a tax if income does not result at all. In the said case the court took the view that, the proba…

Assistant Commissioner of Income Tax 25(3), Mumbai vs. S. S. Enterprises, Mumbai

In the result, the appeal is allowed

ITA 2649/MUM/2018[2014-15]Status: DisposedITAT Mumbai28 Oct 2019AY 2014-15

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2014-15

For Appellant: Mr. Vijay Mehta & Mr. Govind Javeri, ARFor Respondent: Mr. Chaudhary Arun Kumar Singh, DR
Section 143(3)

…m) that a mere claim to a profit or to a liability is not sufficient to make the profit to accrue or the liability to be incurred for the purposes of the Income Tax Act. It is also clarified by the Hon’ble Supreme Court in Morvi Industries Ltd. v. CIT, (1971) 82 ITR 835 (SC) that once accrued, it is liable to the charge even if, subsequently, it is forgone and not realized. When a statute brings to charge certain income, its intention is to enforce the charge at the earliest point of time. The same is clarified in decision in T.N.K. Govindarajulu Chetty v. CIT (1973) 87 ITR 22 (Mad), affirmed in (1987) 165 ITR 2…

Mylan Pharmaceuticals P.Ltd, Mumbai vs. Asst CIT 6(3), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 3307/MUM/2013[2008-09]Status: DisposedITAT Mumbai17 Oct 2019AY 2008-09

Bench: Shri Vikas Awasthy & Shri Rajesh Kumaracit, Cir.6(3), Room No.522, 5Th Floor, Aaykar Bhavan, M.K.Road, Mumbai 400 020 ...... Appellant Vs. M/S. Mylan Pharmaceutical Pvt. Ltd. (Formerly Mylan India Pvt. Ltd.) 7Th Floor, Shivsagar Estate, “A” Dr.Annie Besant Road, Worli, Mumbai 400 018 Pan: Aabcm 9323J ..... Respondent

For Appellant: Ms. Chandni ShahFor Respondent: Shri S.K.Jain

…made or in the year in which the duty free imports are made”. 14. The Hon’ble Court answered the question in favour of the assessee after considering the decisions rendered in the cases of CIT vs Shoorji Vallabhdas & Co.,46 ITR 144(SC), Morvi Industries Ltd. 82 ITR 835(SC) and the provisions of section 28(iv) of the Act the Hon’ble Court observed as under:- “20. It follows from these decisions 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 the purposes of taxability that the income is no…

ACIT 6(3), Mumbai vs. Mylan India P. Ltd. ( Formelry Merck Development Centre P.Ltd ), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 5201/MUM/2011[2005-06]Status: DisposedITAT Mumbai17 Oct 2019AY 2005-06

Bench: Shri Vikas Awasthy & Shri Rajesh Kumaracit, Cir.6(3), Room No.522, 5Th Floor, Aaykar Bhavan, M.K.Road, Mumbai 400 020 ...... Appellant Vs. M/S. Mylan Pharmaceutical Pvt. Ltd. (Formerly Mylan India Pvt. Ltd.) 7Th Floor, Shivsagar Estate, “A” Dr.Annie Besant Road, Worli, Mumbai 400 018 Pan: Aabcm 9323J ..... Respondent

For Appellant: Ms. Chandni ShahFor Respondent: Shri S.K.Jain

…made or in the year in which the duty free imports are made”. 14. The Hon’ble Court answered the question in favour of the assessee after considering the decisions rendered in the cases of CIT vs Shoorji Vallabhdas & Co.,46 ITR 144(SC), Morvi Industries Ltd. 82 ITR 835(SC) and the provisions of section 28(iv) of the Act the Hon’ble Court observed as under:- “20. It follows from these decisions 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 the purposes of taxability that the income is no…

M/S. Trust Marketing, Jaipur vs. Assistant Commissioner of Income Tax, Circle-6, Jaipur

In the result, appeal of the assessee is allowed

ITA 742/JPR/2019[2016-17]Status: DisposedITAT Jaipur02 Oct 2019AY 2016-17
For Appellant: Shri Ved Jain (CA)For Respondent: Shri Varinder Mehta (CIT)
Section 27(1)(a)Section 41(1)

…15 M/s. Trust Marketing, Jaipur. 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…

ACIT Circle 1, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, appeal of the Revenue in ITA 1316/CHNY/2018

ITA 1316/CHNY/2018[2014-15]Status: DisposedITAT Chennai09 Jul 2019AY 2014-15

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri. S. Ananthan,C.AFor Respondent: Shri. Sailendra Mamidi, IRS
Section 143(3)Section 14ASection 36(1)Section 36(1)(vii)Section 40Section 41(1)

…missioner of Income-tax v. Canara Bank [1992] 195 ITR 66, CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144, H.M.Kashiparekh and Co. Ltd. v. CIT [1960] 39 ITR 706, Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521, Morvi Industries Ltd. v. CIT, [1971] 82 ITR 835, State Bank of Travancore v. CIT [1986] 158 ITR 102 (SC), Godhra Electricity Co. Ltd., v. Commissioner of Income-tax, [1997] 225 ITR 746 held that the assessee is taxable for interest on securities only on specified dates when it becomes due for payment, in view of third proviso to Section 145(1) of the Act, which was in force during the relevant…

ACIT Circle 1, Kumbakonam vs. City Union Bank Limited, Kumbakonam

In the result, appeal of the Revenue in ITA 1316/CHNY/2018

ITA 1315/CHNY/2018[2012-13]Status: DisposedITAT Chennai09 Jul 2019AY 2012-13

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri. S. Ananthan,C.AFor Respondent: Shri. Sailendra Mamidi, IRS
Section 143(3)Section 14ASection 36(1)Section 36(1)(vii)Section 40Section 41(1)

…missioner of Income-tax v. Canara Bank [1992] 195 ITR 66, CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144, H.M.Kashiparekh and Co. Ltd. v. CIT [1960] 39 ITR 706, Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521, Morvi Industries Ltd. v. CIT, [1971] 82 ITR 835, State Bank of Travancore v. CIT [1986] 158 ITR 102 (SC), Godhra Electricity Co. Ltd., v. Commissioner of Income-tax, [1997] 225 ITR 746 held that the assessee is taxable for interest on securities only on specified dates when it becomes due for payment, in view of third proviso to Section 145(1) of the Act, which was in force during the relevant…

City Union Bank Limited, Kumbakonam vs. ACIT Circle 1, Kumbakonam

In the result, appeal of the Revenue in ITA 1316/CHNY/2018

ITA 1130/CHNY/2018[2014-15]Status: DisposedITAT Chennai09 Jul 2019AY 2014-15

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri. S. Ananthan,C.AFor Respondent: Shri. Sailendra Mamidi, IRS
Section 143(3)Section 14ASection 36(1)Section 36(1)(vii)Section 40Section 41(1)

…missioner of Income-tax v. Canara Bank [1992] 195 ITR 66, CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144, H.M.Kashiparekh and Co. Ltd. v. CIT [1960] 39 ITR 706, Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521, Morvi Industries Ltd. v. CIT, [1971] 82 ITR 835, State Bank of Travancore v. CIT [1986] 158 ITR 102 (SC), Godhra Electricity Co. Ltd., v. Commissioner of Income-tax, [1997] 225 ITR 746 held that the assessee is taxable for interest on securities only on specified dates when it becomes due for payment, in view of third proviso to Section 145(1) of the Act, which was in force during the relevant…

City Union Bank Limited, Kumbakonam vs. ACIT Circle 1, Kumbakonam

In the result, appeal of the Revenue in ITA 1316/CHNY/2018

ITA 1129/CHNY/2018[2012-13]Status: DisposedITAT Chennai09 Jul 2019AY 2012-13

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri. S. Ananthan,C.AFor Respondent: Shri. Sailendra Mamidi, IRS
Section 143(3)Section 14ASection 36(1)Section 36(1)(vii)Section 40Section 41(1)

…missioner of Income-tax v. Canara Bank [1992] 195 ITR 66, CIT v. Shoorji Vallabhdas and Co. [1962] 46 ITR 144, H.M.Kashiparekh and Co. Ltd. v. CIT [1960] 39 ITR 706, Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521, Morvi Industries Ltd. v. CIT, [1971] 82 ITR 835, State Bank of Travancore v. CIT [1986] 158 ITR 102 (SC), Godhra Electricity Co. Ltd., v. Commissioner of Income-tax, [1997] 225 ITR 746 held that the assessee is taxable for interest on securities only on specified dates when it becomes due for payment, in view of third proviso to Section 145(1) of the Act, which was in force during the relevant…

M/S/ Ibs Software P. Ltd, Trivandrum vs. The ACIT, Trivandrum

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

ITA 102/COCH/2019[2003-04]Status: DisposedITAT Cochin01 May 2019AY 2003-04

Bench: Shri Chandra Poojari, Am & Shri George George K, Jm

For Appellant: S/Sri.M.Gopi Krishnan Nambiar / RajakannanFor Respondent: Smt.A.S.Bindhu, Sr.DR
Section 148Section 28

…imited. is clear from the terms / clauses of the BCA that the liability though paid in installments, had accrued when the agreement was entered and was effective from 01.01.2000. 7.3 The Hon’ble Apex Court in the case of The Morvi Industries Pvt. Ltd. v. CIT (82 ITR 835) (SC) held that income can be said to accrue when it become due. The date of payment does not affect the accrual of income and the moment the income accrues the assessee gets vested with the right to claim the amount even though it may not be immediately. It was further held in the case that income accrues, when there arises a corresponding liabil…

Asst CIT 27(2), Navi Mumbai vs. Usha J Dutta, Mumbai

ITA 7663/MUM/2016[2006-07]Status: DisposedITAT Mumbai24 Apr 2019AY 2006-07

Bench: Hon’Ble Sh. G. S. Pannu, Vp & Hon’Ble Sh. Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 7663/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2006-07) Usha J. Dutia Acit 27(2) R. No. 420, 4Th Floor, 7 Arut Dhara, Joshi Lane बिधम/ Ghatkopar East, Tower No. 6, Vashi Rly Vs. Mumbai-400 077 Station Complex, Vashi, Navi Mumbai-400 703 स्थायीलेखासं./जीआइआरसं./ Pan No. Abqpd9420J (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Shri Rajiv Gubgotra, Dr प्रत्यथीकीओरसे/Respondentby : Shri Pankaj R. Toprani & Ms. Krupa P. Toprani, Ars सुनवाईकीतारीख/ : 28.01.2019 Date Of Hearing घोषणाकीतारीख / : 24.04.2019 Date Of Pronouncement आदेश / O R D E R Per Sandeep Gosain: The Present Appeal Has Been Filed By The Revenue Against The Order Of Commissioner Of Income Tax (Appeals)-25, Mumbai

For Appellant: Shri Rajiv GubgotraFor Respondent: Shri Pankaj r. Toprani
Section 148Section 5Section 69A

…unaccounted and unexplained peak credit amount was rightly taxed in A.Y. 2006-07. 3. On the facts and circumstances of the case the Ld.CIT(A) has erred by not considering the decision of Hon'ble Supreme Court in the case of M/s. Morvi Industries Ltd. Vs CIT (82 ITR 835), wherein as per the judgement, the income is taxable immediately, the year it accrues. 4. On facts and circumstances of the case, the Ld.CIT(A) erred in not considering the decision of the Hon'ble Supreme Court in the case of ITO Vs. Atchaiah (CH) (1996) 218 ITR 239 (SC), wherein it is held that the income is required to be assessed correctly ev…

M/S. Deepali Designs and Exhibits Pvt. Ltd., Delhi vs. DCIT, New Delhi

Appeal of the Revenue is dismissed and appeal of the Assessee is partly allowed for statistical purpose

ITA 1827/DEL/2015[2011-12]Status: DisposedITAT Delhi14 Mar 2019AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 36

…1 of CLC) 2 CIT(A) Vs. Mathulal Baldeo Prasad [1961]42 ITR 517 (ALL.) 15 by the Ao is misplaced. The Ld. AR further submitted that the AO while passing the assessment order dated 21.03.2013, has relied on the judgment of Morvi Industries Ltd. Vs. CIT (1971) 82 ITR 835 (SC). However, a subsequent judgment of the Supreme Court in the case of CIT Vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC) after discussing the judgment of Morvi Industries Ltd. has held 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. Mere filing of the…

ACIT, New Delhi vs. M/S. Deepali Design & Exhibits (P) Ltd., New Delhi

Appeal of the Revenue is dismissed and appeal of the Assessee is partly allowed for statistical purpose

ITA 1710/DEL/2015[2011-12]Status: DisposedITAT Delhi14 Mar 2019AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 36

…1 of CLC) 2 CIT(A) Vs. Mathulal Baldeo Prasad [1961]42 ITR 517 (ALL.) 15 by the Ao is misplaced. The Ld. AR further submitted that the AO while passing the assessment order dated 21.03.2013, has relied on the judgment of Morvi Industries Ltd. Vs. CIT (1971) 82 ITR 835 (SC). However, a subsequent judgment of the Supreme Court in the case of CIT Vs. Excel Industries Ltd. [2013] 358 ITR 295 (SC) after discussing the judgment of Morvi Industries Ltd. has held 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. Mere filing of the…

M/S. Apna Sapna, Bangalore vs. Assistant Commissioner of Income-Tax, Bangalore

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

ITA 454/BANG/2017[2007-2008]Status: DisposedITAT Bangalore15 Feb 2019AY 2007-2008

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadaleassessment Year : 2007-08

For Appellant: Shri Nitish Ranjan, CAFor Respondent: Shri K. N. Dhandapani, JCIT (DR)
Section 143(3)Section 234BSection 263

…Appellant was unable to recover the enhanced charges. Consequently, it challenged the inclusion of such amount within its assessable income on the ground that no real income had accrued. Reiterating its earlier decision in Morvi Industries Ltd. Vs. CIT (1972) 4 SCC 451 and CIT vs. Birla Gwalior (1974) 3 SCC 196, the 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 realization in realistic manner. Applying the above principles, Courts have consistently refrained from allowing Page 6 o…

The Income Tax Officer, Amritsar vs. Sh. Shiv Raj Singh Bawa, Amritsar

In the result, the Revenue’s appeal is allowed and the assessee’s CO, dismissed

ITA 407/ASR/2016[2012-13]Status: DisposedITAT Amritsar30 Jan 2019AY 2012-13

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi.T.A. No. 407/Asr/2016 Assessment Year: 2012-13

For Appellant: Sh. Charan Dass (D.R.)For Respondent: Sh. Tarun Bansal (Adv.)
Section 143(3)Section 40A(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE SH. SANJAY ARORA, ACCOUNTANT MEMBER AND SH. N. K. CHOUDHRY, JUDICIAL MEMBER I.T.A. No. 407/Asr/2016 Assessment Year: 2012-13 vs. Shiv Raj Singh Bawa, Income Tax Officer, c/o Bawa Steel, Ward-4(5), Amritsar G.T. Road, Amritsar [PAN: AGLPB 1944K] (Appellant) (Respondent) Cross Objection No. 11/Asr/2017 (arising out of ITA No. 407/Asr/2016) Assessment Year: 2012-13 Shiv Raj Singh Bawa, vs. Income Tax Officer, c/o Bawa Steel, G.T. Road, Ward-4(5), Amritsar Amritsar [PAN: AGLPB 1944K] (Cross Objector) (Respondent) Appellant by : Sh.…

ACIT, New Delhi vs. M/S. Jain Corporative Bank Ltd., New Delhi

In the result, the appeal of the department stands

ITA 6795/DEL/2015[2012-13]Status: DisposedITAT Delhi28 Jan 2019AY 2012-13

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaassessment Year: 2012-13 Acit, Vs M/S Jain Cooperative Bank Ltd., Circle 52(1), 80, Darya Ganj, New Delhi. Delhi-110002 (Pan: Aaaaj0060A) (Appellant) (Respondent) Department By: Shri Sridhar Dora, Sr. Dr Assessee By: None Present Date Of Hearing: 20.11.2018 Date Of Pronouncement: 28.01.2019

For Appellant: None PresentFor Respondent: Shri Sridhar Dora, Sr. DR

…s taken a specific ground vide ground No.l by which it has challenged that Ld. CIT(A) has wrongly followed the judgement of CIT Vs Shoorji Vallabhdas & Co. 46 ITR 144 (S.C.), which was distinguished by the judgement in the case of Morvi Industries Ltd. Vs CIT 82 ITR 835. However, we find that Ld. CIT(A) had followed the former case law by applying the ratio which lays down that real income has to be considered with reference to commercial & business realities of the situation not with reference to his system of accounting. The facts in the case law of Morvi Industries Ltd. (supra) are quite different. Therefore,…