Navin R. Karnani Karnani v. CIT

ASST CIT 2(2)(1), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

Bench: Smt. Beena Pillai () & Shri Jagadish ()

…. Extension of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de 11stopp is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co.…

STATE BANK OF INDIA,MUMBAI vs. ASST CIT CIR 2(2), MUMBAI

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

Bench: Smt. Beena Pillai () & Shri Jagadish ()

…. Extension of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de 11stopp is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co.…

ASST CIT CIR 2(2)(1), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

In the result, the appeal by the Revenue is partly allowed for statistical purposes

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

…ate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme State Bank of India ITA no.3645/Mum./2016 ITA no.4564/Mum./2016 Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de 11stopp is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co.…

STATE BANK OF INDIA,MUMBAI vs. ADDL CIT RG 2(2), MUMBAI

In the result, the appeal by the Revenue is partly allowed for statistical purposes

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

…ate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme State Bank of India ITA no.3645/Mum./2016 ITA no.4564/Mum./2016 Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de 11stopp is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co.…

DCIT 2(2), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

Bench: Shri M. Balaganesh & Shri Kuldip Singhassessment Year: 2005-06 M/S. State Bank Of India, Dcit, Financial Reporting & Circle -2(2), Taxation Dept., Mumbai 3Rd Floor, Vs. Corporate Centre, Madam Cama Road, Nariman Point, Mumbai – 400 021 Pan: Aaacs8577K (Appellant) (Respondent) Assessment Year: 2005-06 Office Of The Dcit-2(2), M/S. State Bank Of India, R.No.545, Central Office, Aayakar Bhavan, Accounts & Compliance M.K. Road, Dept., Vs. 14Th Floor, Mumbai- 400 020 Madam Cama Rd., Nariman Point, Mumbai – 400 021 Pan: Aaacs8577K (Appellant) (Respondent)

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. avin R. Karnani vs. CIT 185 ITR 408 (Bom) Karnani vs. CIT 185 ITR 408 (Bom) ani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction unde…

STATE BANK OF INDIA,MUMBAI vs. DCIT CIR 2(2), MUMBAI

Bench: Shri M. Balaganesh & Shri Kuldip Singhassessment Year: 2005-06 M/S. State Bank Of India, Dcit, Financial Reporting & Circle -2(2), Taxation Dept., Mumbai 3Rd Floor, Vs. Corporate Centre, Madam Cama Road, Nariman Point, Mumbai – 400 021 Pan: Aaacs8577K (Appellant) (Respondent) Assessment Year: 2005-06 Office Of The Dcit-2(2), M/S. State Bank Of India, R.No.545, Central Office, Aayakar Bhavan, Accounts & Compliance M.K. Road, Dept., Vs. 14Th Floor, Mumbai- 400 020 Madam Cama Rd., Nariman Point, Mumbai – 400 021 Pan: Aaacs8577K (Appellant) (Respondent)

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. avin R. Karnani vs. CIT 185 ITR 408 (Bom) Karnani vs. CIT 185 ITR 408 (Bom) ani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction unde…

STATE BANK OF INDIA,MUMBAI vs. ASST CIT CIR 2(2), MUMBAI

In the result, appeal of the Revenue in ITA No

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani Karnani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasses Co.…

STATE BANK OF INDIA,MUMBAI vs. ADDL CIT RG 2(2), MUMBAI

In the result, the appeal filed by the assessee is partly allowed and appeal filed by the revenue is dismissed

Bench: Shri Rajesh Kumar, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.6482 /Mum/2010 (निर्धारण वर्ा / Assessment Year: 2000-01) State Bank Of India बिधम/ Acit Range-2(2) Mumbai. Financial Reporting, Vs. Compliance & Taxation Dept. Mumbai-400021. Ita. No. 6822/Mum/2010 (निर्धारण वर्ा / Assessment Year: 2000-01) Acit Range-2(2) बिधम/ State Bank Of India Mumbai. Financial Reporting, Vs. Compliance & Taxation Dept. Mumbai-400021. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacs8577K (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Girish Dave/Urvi Mehta Revenue By: Shri Awungshi Gimson (Dr) सुनवाई की तारीख / Date Of Hearing: 12/12/2019 घोषणा की तारीख /Date Of Pronouncement: 06/03/2020 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue As Well As Assessee Have Filed The Above Mentioned Appeals Against The Order Dated 21.07.2010 Passed By The Commissioner Of Income Tax (Appeals)-5, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2000-01. Ita. No.6482/M/2010 6822/M/2010 A.Y. 2000-01 2. The Assessee Has Filed The Present Appeal Against The Order Dated 21.07.2010 Passed By The Commissioner Of Income Tax (Appeals)-05, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2000- 01. 3. The Assessee Has Raised The Following Grounds: -

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani Karnani vs. CIT 185 ITR 408 (Bom), ITA. No.6482/M/2010 6822/M/2010 A.Y. 2000-01 (Bom) it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction under the Incom…

STATE BANK OF INDIA,MUMBAI vs. ACIT CIR 2(2),

In the result, appeal of the revenue is dismissed

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani Karnani vs. CIT 185 ITR 408 (Bom), (Bom) it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasse…

ACIT CIR 2(2), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

In the result, appeal of the revenue is dismissed

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. Karnani Karnani vs. CIT 185 ITR 408 (Bom), (Bom) it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction under the Income-tax Act as held in the case of Indian Molasse…

M/S. STATE BANK OF INDIA,MUMBAI vs. JT. CIT. SPL. RG. - 27, MUMBAI

Bench: S/Sh.Rajendra & Amit Shuklaआयकर अपील सं./I.T.A. No.3823-24/Mum/2005 िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Ay.S.1997-98, 1998-99 वष" State Bank Of India Addl. Cit- Range-2(2) Accounts & Compliance Deptt. Mumbai. Corporate Centre,Madam Cama Road Vs. Mumbai-400 021. Pan:Aaacs 8577 K (अपीलाथ" /Appellant) (""थ" / Respondent) Revenue By: Shri Rajeshwar Yadav Assessee By:Shri Girish Dave सुनवाई की तारीख / Date Of Hearing :02.03.2016 घोषणा की तारीख / Date Of Pronouncement: 29.04.2016 आयकर अिधिनयम,1961 की धारा 254(1)के अ"ग"त आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) खंडपीठ के अनुसार Per Bench: Challenging The Orders Dated 24.3.2005 & 28.3.2005 The Asssessee Has Filed The Appeals For Above Mentioned Two Ay.S Raising Various Grounds Of Appeal. It Has Also Filed Additional Grounds Of Appeal For The Ay 1997-98.Assessee,A Public Sector Bank Is Engaged In The Business Of Banking.The Details Of Filing Of Returns, Returned Income Etc., For Both The Years Can Be Summarised As Under : A.Y. Roi Filed Returned Assessment Assessed Dt. Of Orders On Income(Rs.) Dt. Income(Rs.) Of Cit(A) 1997-98 28.11.1997 2086,56,04,580/- 27.03.2000 2433,18,77,427/- 24.3.2005 1998-99 30.11.1998 2816,41,01,920/- 14.02.2001 3558,87,03,620/- 28.3.2005

…ion of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary to the postulates of the Act, the Supreme Court held (p. 146 of 158 ITR). Moreover, as held in the case of Navin R. avin R. Karnani vs. CIT 185 ITR 408 (Bom) Karnani vs. CIT 185 ITR 408 (Bom) ani vs. CIT 185 ITR 408 (Bom), it was not possible to waive any amount of income which had accrued under the mercantile system of accounting on the ground of diminished hope of recovery. Furthermore, any liability de futuro is not an ascertained liability in praesenti and cannot be allowed as deduction unde…

ADIT (I.T)-3(2), MUMBAI vs. M/S. BECHTEL INTERNATIONAL INC., MUMBAI

In the result, appeal of the revenue is dismissed, whereas appeal of the assessee is allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Sanjay Garg, Jm आमकय अऩीर सं./Ita No.39/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Ddit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. आमकय अऩीर सं./Ita No.650/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) The Adit, International Vs. Bechtel International Inc., C/O Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. Cross Objection No.122/Mum/2007 (Arising Out Of Ita No.650/Mum/2007) (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Acit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Sunil M. Lala & Sh. Varun Sankhesara यमजस्र् की ओर से /Revenue By : Ms. Vandana Sagar

…ound manner as per the agreement after certification of work done and actual payment may be made at later date i.e. within 30 days of the certification of the work.. Reliance was placed on the decision of Hon’ble Bombay High Court in the case of Navin Kamani, 185 ITR 408, wherein it was observed that the concept of real income cannot be employed so as to defeat the provisions of the Act. She further contended that the assessee showed payments in earlier years on accrual basis. Since work continued in the first two months of the relevant financial year, there was no reason not to disclose the same on accrual basis…

M/S. BECHTEL INTERNATIONAL INC., USA,MUMBAI vs. DDIT (I.T) - 3(2), MUMBAI

In the result, appeal of the revenue is dismissed, whereas appeal of the assessee is allowed in part, in terms indicated hereinabove

Bench: Shri R.C.Sharma, Am & Shri Sanjay Garg, Jm आमकय अऩीर सं./Ita No.39/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Ddit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. आमकय अऩीर सं./Ita No.650/Mum/2007 (नििाारण वषा / Assessment Year :2002-2003) The Adit, International Vs. Bechtel International Inc., C/O Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. Cross Objection No.122/Mum/2007 (Arising Out Of Ita No.650/Mum/2007) (नििाारण वषा / Assessment Year :2002-2003) Bechtel International Inc., C/O Vs. The Acit, International Kpmg, 1St Floor, Apollo Mills Taxation-3(2), Mumbai Compound, N.M.Joshi Marg, Mahalaxmi, Mumbai-400011 स्थममी रेखम सं./ जीआइआय सं./ Pan/Gir No. : Aaacb 6149 A (अऩीरमथी /Appellant) (प्रत्मथी / Respondent) .. यनधमवरयती की ओर से /Assessee By : Shri Sunil M. Lala & Sh. Varun Sankhesara यमजस्र् की ओर से /Revenue By : Ms. Vandana Sagar

…ound manner as per the agreement after certification of work done and actual payment may be made at later date i.e. within 30 days of the certification of the work.. Reliance was placed on the decision of Hon’ble Bombay High Court in the case of Navin Kamani, 185 ITR 408, wherein it was observed that the concept of real income cannot be employed so as to defeat the provisions of the Act. She further contended that the assessee showed payments in earlier years on accrual basis. Since work continued in the first two months of the relevant financial year, there was no reason not to disclose the same on accrual basis…