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

ACIT, New Delhi vs. M/S. Jain Co-Operative Bank Ltd., New Delhi

In the result, the appeal of the appellant is partly allowed

ITA 4538/DEL/2015[2011-12]Status: DisposedITAT Delhi24 Oct 2018AY 2011-12

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: NoneFor Respondent: Smt. Ranu Mukherjee, Sr. DR
Section 142(1)Section 154

…on of Rs. 3,55,61,409/- made by the AO on account of interest accrued on NPA, following the judgment of CIT vs. Shoorji Vallabhdas & Co. 46 ITR 144 (SC) (1962) which stands distinguished by the judgement in the case of Morvi Industries Ltd. vs. CIT (1971) 82 ITR 835 Supreme Court. of 2. On the facts and circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 3,55,61,409/- made by AO on account of interest on NPAs ignoring the ratio of the case of State Bank of Travancore vs. CIT reported in (1986) 158 ITR 102 (SC)”. 2. Brief facts of the case are that the assessee filed return…

Shelter Projects Ltd., Kolkata vs. CIT, (A)-XII, Kolkata

In the result, the appeal of assessee is partly allowed

ITA 737/KOL/2014[2009-2010]Status: DisposedITAT Kolkata17 Oct 2018AY 2009-2010
Section 47

…n though an entry to that 6 M/s. Shelter Projects Limited 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 Commissioner of lncome­Tax (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…

Dy. C.I.T.2(1), Raipur (Cg) vs. Shri Taral Modi, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 314/BIL/2014[2006-07]Status: DisposedITAT Raipur12 Oct 2018AY 2006-07

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2006-07 Dcit- 2(1), Abhishek Atlani, Raipur (Cg). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri R. K. Singh, CIT-DR
Section 132Section 142(1)Section 153C

…IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2006-07 DCIT- 2(1), Abhishek Atlani, Raipur (CG). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (CG). PAN : AFRPA7301J (Appellant) (Respondent) Assessment Year : 2006-07 DCIT- 2(1), Suresh Atlani, Raipur (CG). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (CG). PAN : AFIPA5299Q (Appellant) (Respondent) Assessment Year : 2006-07 DCIT- 2(1), Taral Modi, Raipur (CG). C/o. Modi Sons, Malviya Road, Vs. Raipur (CG). PAN : ADUPM8682…

Dy. C.I.T.2(1), Raipur (Cg) vs. Shri Suresh Atlani, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 186/BIL/2014[2006-07]Status: DisposedITAT Raipur12 Oct 2018AY 2006-07

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2006-07 Dcit- 2(1), Abhishek Atlani, Raipur (Cg). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri R. K. Singh, CIT-DR
Section 132Section 142(1)Section 153C

…IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2006-07 DCIT- 2(1), Abhishek Atlani, Raipur (CG). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (CG). PAN : AFRPA7301J (Appellant) (Respondent) Assessment Year : 2006-07 DCIT- 2(1), Suresh Atlani, Raipur (CG). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (CG). PAN : AFIPA5299Q (Appellant) (Respondent) Assessment Year : 2006-07 DCIT- 2(1), Taral Modi, Raipur (CG). C/o. Modi Sons, Malviya Road, Vs. Raipur (CG). PAN : ADUPM8682…

Dy. C.I.T.2(1), Raipur (Cg) vs. Abhishek Atlani, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 185/BIL/2014[2006-07]Status: DisposedITAT Raipur12 Oct 2018AY 2006-07

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2006-07 Dcit- 2(1), Abhishek Atlani, Raipur (Cg). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri R. K. Singh, CIT-DR
Section 132Section 142(1)Section 153C

…IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER Assessment Year : 2006-07 DCIT- 2(1), Abhishek Atlani, Raipur (CG). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (CG). PAN : AFRPA7301J (Appellant) (Respondent) Assessment Year : 2006-07 DCIT- 2(1), Suresh Atlani, Raipur (CG). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (CG). PAN : AFIPA5299Q (Appellant) (Respondent) Assessment Year : 2006-07 DCIT- 2(1), Taral Modi, Raipur (CG). C/o. Modi Sons, Malviya Road, Vs. Raipur (CG). PAN : ADUPM8682…

Pyramid Realtors Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 2057/DEL/2017[2010-11]Status: DisposedITAT Delhi08 Oct 2018AY 2010-11

Bench: Shri Bhavnesh Saini & Shri L.P. Sahu

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Shri Pradeep Singh Gautam
Section 143(1)Section 143(3)Section 2(22)(e)

…n though an entry to that effect might, in certain circumstances, have been made in the books of account." 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: (page 340) ". … 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 42 ITA…

Saga Developers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 2056/DEL/2017[2010-11]Status: DisposedITAT Delhi08 Oct 2018AY 2010-11

Bench: Shri Bhavnesh Saini & Shri L.P. Sahu

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Shri Pradeep Singh Gautam
Section 143(1)Section 143(3)Section 2(22)(e)

…n though an entry to that effect might, in certain circumstances, have been made in the books of account." 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: (page 340) ". … 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 42 ITA…

Saamag Construction Ltd., New Delhi vs. ACIT, New Delhi

ITA 2054/DEL/2017[2010-11]Status: DisposedITAT Delhi08 Oct 2018AY 2010-11

Bench: Shri Bhavnesh Saini & Shri L.P. Sahu

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Shri Pradeep Singh Gautam
Section 143(1)Section 143(3)Section 2(22)(e)

…n though an entry to that effect might, in certain circumstances, have been made in the books of account." 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: (page 340) ". … 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 42 ITA…

Saamag Developers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

ITA 2053/DEL/2017[2010-11]Status: DisposedITAT Delhi08 Oct 2018AY 2010-11

Bench: Shri Bhavnesh Saini & Shri L.P. Sahu

For Appellant: Shri M.P. Rastogi, AdvocateFor Respondent: Shri Pradeep Singh Gautam
Section 143(1)Section 143(3)Section 2(22)(e)

…n though an entry to that effect might, in certain circumstances, have been made in the books of account." 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: (page 340) ". … 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 42 ITA…

Mahesh Gordhandas Garodia, Mumbai vs. DCIT 22(1), Mumbai

In the result, appeal of the assessee is allowed whereas appeal of the Revenue is dismissed

ITA 5098/MUM/2015[2010-11]Status: DisposedITAT Mumbai12 Jul 2018AY 2010-11

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm Shri Maheshkumar Gordhandas Vs. Dy. Commissioner Of Garodia, Income Tax 22(1) 149/156, Garodia Shopping Centre, Mumbai Garodia Nagar, Ghatkopar (E) Mumbai – 400 077 Pan/Gir No.Aacpg2906R Appellant) .. Respondent) The Asst. Commissioner Of Vs. Shri Mahesh S Garodia, Income Tax 27(2) 149/156, Garodia Shopping Mumbai Centre, Garodia Nagar, Ghatkopar (E) Mumbai – 400 077 Pan/Gir No.Aacpg2906R Appellant) .. Respondent) Assessee By Dr. K. Shivaram & Shri Rahul Hakani Revenue By Shri Purushottam Tripuri Date Of Hearing 10/07/2018 Date Of Pronouncement 12/07/2018 आदेश / O R D E R Per R.C.Sharma (A.M):

Section 143(3)Section 55A

…received. 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. CIT [1971] 82 ITR 835. "The income can be said to accrue when it becomes due.... The moment the income accrues, the assessee gets vested right to claim that amount, even though not immediately." In fact the application of formula in the agreement dated 25th January, 2006 itself makes the amount which is receivable as deferred consideration contingent upon the profits o…

DCIT Non Corporate Circle 9(1), Chennai vs. Anil Sheth, Chennai

In the result, the appeal of the Revenue is allowed for 8

ITA 1705/CHNY/2017[2009-10]Status: DisposedITAT Chennai11 Jun 2018AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. No. 1705/Chny/2017 "नधा"रण वष" /Assessment Year : 2009-2010. The Deputy Commissioner Of Vs. Shri. Anil Sheth, Income Tax, Prop. M/S. Prince Marbles, Non Corporate Circle 9(1) No.34, Langs Garden Road, Chennai. Pudupet, Chennai 600 002. [Pan Addpa 3880A ] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Ms. Petchi, C.A
Section 2(47)Section 54F

…ough 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 th…

Tamil Nadu Brick Industries, Chennai vs. ITO, Chennai

ITA 744/CHNY/2017[2013-14]Status: DisposedITAT Chennai11 May 2018AY 2013-14

Bench: Shri Abraham P. George & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A.No.744/Chny/2017 "नधा"रण वष"/Assessment Year:2013-14 M/S. Tamilnadu Brick Industries, The Income Tax Officer, No. 47, Mangali Nagar 1St Street, Vs. Non Corporate Circle 8(1), Arumbakkam, Chennai 600 106. Chennai. [Pan: Aafft3643P] (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से / Appellant By : Shri S. Sridhar, Advocate ""यथ" क" ओर से/Respondent By : Shri Vijay Kumar Punna, Jr. Standing Counsel सुनवाई क" तार"ख/ Date Of Hearing : 13.02.2018 घोषणा क" तार"ख /Date Of Pronouncement : 11.05.2018 आदेश /O R D E R Per Duvvuru Rl Reddy: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 9, Chennai, Dated 27.02.2017 Relevant To The Assessment Year 2013-14. The Assessee Has Raised The Following Grounds: “1. The Order Of The Commissioner Of Income Tax (Appeals) 9, Chennai Dated 27.02.2017 In I.T.A.No.07/Cit(A)-9/2016-17 For The Above Mentioned Assessment Year Is Contrary To Law, Facts & In The Circumstances Of The Case.

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri Vijay Kumar Punna
Section 143(1)Section 143(3)Section 2(47)(v)

…n though 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 SSC 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…

ACIT, Cir.-1(2), Pune vs. Global Infrastructure & Technologies Ltd., Pune

In the result, the appeal of Revenue in ITA

ITA 351/PUN/2007[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…s considered, when the waiver after the end of the financial year was found acceptable. The Supreme Court in the light of the three leading decisions on the subject CIT v. Shoorji Vallabhdas & Co.'s case, (1962) 46 ITR 144, Morvi Industries Ltd.'s case (1971) 82 ITR 835 (SC) and CIT v. Birla Gwalior Pvt. Ltd. (1973) 89 ITR 266 found that the hypothetical income, even if credited as income in the books may not be taxable in view of the theory of real income. 5.2.5 In the case of the appellant as is apparent, from the very nature of the transactions, no real income has accrued on the account of merely transferring…

M/S. Global Infrastructure & Technologies Ltd., Pune vs. ITO, WD.-3(3), Pune

In the result, the appeal of Revenue in ITA

ITA 722/PUN/2004[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…s considered, when the waiver after the end of the financial year was found acceptable. The Supreme Court in the light of the three leading decisions on the subject CIT v. Shoorji Vallabhdas & Co.'s case, (1962) 46 ITR 144, Morvi Industries Ltd.'s case (1971) 82 ITR 835 (SC) and CIT v. Birla Gwalior Pvt. Ltd. (1973) 89 ITR 266 found that the hypothetical income, even if credited as income in the books may not be taxable in view of the theory of real income. 5.2.5 In the case of the appellant as is apparent, from the very nature of the transactions, no real income has accrued on the account of merely transferring…

DCIT, Cir.-1(1), Pune vs. Global Infrastructure & Technologies Ltd., Mumbai

In the result, the appeal of Revenue in ITA

ITA 624/PUN/2004[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…s considered, when the waiver after the end of the financial year was found acceptable. The Supreme Court in the light of the three leading decisions on the subject CIT v. Shoorji Vallabhdas & Co.'s case, (1962) 46 ITR 144, Morvi Industries Ltd.'s case (1971) 82 ITR 835 (SC) and CIT v. Birla Gwalior Pvt. Ltd. (1973) 89 ITR 266 found that the hypothetical income, even if credited as income in the books may not be taxable in view of the theory of real income. 5.2.5 In the case of the appellant as is apparent, from the very nature of the transactions, no real income has accrued on the account of merely transferring…

DCIT, Cir.-1(1), Pune vs. Mantri Housing & Constructions Ltd., Pune

In the result, the appeal of Revenue in ITA

ITA 1027/PUN/2004[1998-99]Status: DisposedITAT Pune28 Feb 2018AY 1998-99

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru
Section 143(3)Section 271(1)(c)

…s considered, when the waiver after the end of the financial year was found acceptable. The Supreme Court in the light of the three leading decisions on the subject CIT v. Shoorji Vallabhdas & Co.'s case, (1962) 46 ITR 144, Morvi Industries Ltd.'s case (1971) 82 ITR 835 (SC) and CIT v. Birla Gwalior Pvt. Ltd. (1973) 89 ITR 266 found that the hypothetical income, even if credited as income in the books may not be taxable in view of the theory of real income. 5.2.5 In the case of the appellant as is apparent, from the very nature of the transactions, no real income has accrued on the account of merely transferring…

Sh. Jai Ram, Jagadhari vs. ITO, Yamunanagar

In the result, both the appeal of different assessees are allowed

ITA 366/CHANDI/2017[2007-08]Status: DisposedITAT Chandigarh26 Feb 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Sh. Rohit GoelFor Respondent: Smt. Chandrakanta

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos. 365/Chd/2017 (Assessment Year : 2007-08) Sh. Amar Singh Vs. The ITO Vill- Jaroda Ward-3 Jagadhari Yamunanagar PAN: CBUPS7968E ITA Nos. 366/Chd/2017 (Assessment Year : 2007-08) Sh. Jai Ram Vs. The ITO Vill- Jaroda Ward-1 Jagadhari Yamunanagar (Appellant) (Respondent) Assessee by : Sh. Rohit Goel Department by : Smt. Chandrakanta Date of hearing : 29.11.2017 Date of Pronouncement : 26/02/2018 O R D E R PER DR.B.R.R.KUMAR, A.M. : This order shall dis…

Sh. Amar Singh, Jagadhari vs. ITO, Yamunanagar

In the result, both the appeal of different assessees are allowed

ITA 365/CHANDI/2017[2007-08]Status: DisposedITAT Chandigarh26 Feb 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Sh. Rohit GoelFor Respondent: Smt. Chandrakanta

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’A’, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA Nos. 365/Chd/2017 (Assessment Year : 2007-08) Sh. Amar Singh Vs. The ITO Vill- Jaroda Ward-3 Jagadhari Yamunanagar PAN: CBUPS7968E ITA Nos. 366/Chd/2017 (Assessment Year : 2007-08) Sh. Jai Ram Vs. The ITO Vill- Jaroda Ward-1 Jagadhari Yamunanagar (Appellant) (Respondent) Assessee by : Sh. Rohit Goel Department by : Smt. Chandrakanta Date of hearing : 29.11.2017 Date of Pronouncement : 26/02/2018 O R D E R PER DR.B.R.R.KUMAR, A.M. : This order shall dis…

Analjit Singh, Delhi vs. DCIT, Circle- 16(2), Delhi

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

ITA 4737/DEL/2017[2014-15]Status: DisposedITAT Delhi01 Dec 2017AY 2014-15

Bench: Shri Amit Shukla & Shri O.P.Kant

Section 143(3)Section 2Section 50D

…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 tha…

DCIT, Ghaziabad vs. M/S. Supreme Ceremics Ltd., Ghaziabad

Appeal of the Revenue is dismissed and that of assessee is partly allowed

ITA 431/DEL/2016[2011-12]Status: DisposedITAT Delhi21 Nov 2017AY 2011-12

Bench: Shri B.P. Jain & Shri Sudhanshu Srivastava[Assessment Year: 2011-12] The D.C.I.T Vs. M/S Supreme Ceramics Ltd Circle 2 C – 154, B.S. Road, Ghaziabad Bulandshahar Road, Industrial Area Ghaziabad Pan : Aaccs 6095 C [Assessment Year: 2011-12] M/S Supreme Ceramics Ltd Vs. The D.C.I.T C – 154, B.S. Road, Circle 2 Bulandshahar Road, Ghaziabad Industrial Area Ghaziabad Pan : Aaccs 6095 C [Appellant] [Respondent] Date Of Hearing : 06.11.2017 Date Of Pronouncement : 21.11.2017 Assessee By : Shri Ashwani Tanena, Adv Shri Acrhit Rehan, Adv

For Appellant: Shri Ashwani Tanena, AdvFor Respondent: Shri S.K. Jain, Sr. DR
Section 2

…ough an entry to that effect might, in certain circumstances, have been made in the books of account." 12. 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 th…