Poona Electric Company Supply Ltd. v. CIT

103 ITR 384High Court1976#14647 most cited
6

judgments rely on this decision, according to BharatTax’s citation analysis of 346,713 Indian tax judgments — from 2010 to 2025.

Sections most often in play

Section 11Section 119Section 12Section 12A(1)(b)Section 139Section 36(1)(vii)

Issues it is cited on

section 36(2)(v)section 41(4)section 36(2)section 36(1)(viia)section 36(1)(vii)section 41section 36(1)section 145section 36escapement of incomeprevious yearsection 143

Judgments citing Poona Electric Company Supply Ltd. v. CIT

Seva Bharathi Trust, Chamarajanagara vs. Income Tax Officer, Ward-1, Chamarajanagara

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

ITA 1486/BANG/2025[2016-17]Status: DisposedITAT Bangalore31 Oct 2025AY 2016-17

Bench: Shri.Laxmi Prasad Sahu & Shri.Keshav Dubeyassessment Year : 2016-17 M/S. Seva Bharathi Trust, Vs. Ito, Sevabharathi College Campus, Ward –1, Chennipuradamole Road, Chamarajanagara. Chamarajanagara – 571 313. Pan : Aabts 6034 K Appellant Respondent Assessee By : Shri. Vageesh Hegde, Ca Revenue By : Shri. Ganesh R. Ghale, Advocate, Standing Counsel For Revenue. Date Of Hearing : 09.10.2025 Date Of Pronouncement : 31.10.2025

For Appellant: Shri. Vageesh Hegde, CAFor Respondent: Shri. Ganesh R. Ghale, Advocate, Standing Counsel for Revenue
Section 11Section 119Section 12A(1)(b)Section 139

…. the real profits and statutory profits. The latter are statutorily fixed for a specified purpose." [Emphasis supplied] (p. 530) 36. To the same effect is the judgment of the Bombay High Court in the case of CWT v. Bombay Suburban Electric Supply Ltd. [1976] 103 ITR 384 , where it was observed as under : ". . . Income-tax is a tax on the real income, i.e., profits arrived at on commercial principles subject to the provisions of the Income-tax Act, 1961. The real profits can be ascertained only by making the permissible deduction. . . ". [Emphasis supplied] (p. 391) 37. The point to be noted is that the Income-ta…

ACIT Corporate Circle -1 (1), Kochi vs. M/S Geofin Comtrade Ltd, Kochi

In the result, the Revenue’s appeals are allowed

ITA 968/COCH/2022[2014-15]Status: DisposedITAT Cochin13 Mar 2024AY 2014-15

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmi

For Appellant: Ms. Rohini Thampi, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 36(1)(vii)

…head ‘Theory of “real income”, as indeed ‘Applicability of section 145’ (at paras 35 to 40 of the decision). Referring to decisions in Poona Electric Company Supply Ltd. v. CIT [1965] 57 ITR 521, 530 (SC) and CWT v. Bombay Suburban Electric Supply Ltd. [1976] 103 ITR 384, 391 (Bom), holding so, the Hon'ble Apex Court further holds as under: [“38. The point to be noted is that the Income-tax is a tax on " real income", i.e., the profits arrived at on commercial principles subject to the provisions of the Income-tax Act. Therefore, if by the Explanation to section 36(1)(vii) a provision for doubtful debt is kept ou…

ACIT, Kochi vs. M/S.Geofin Comtrade Ltd, Kochi

In the result, the Revenue’s appeals are allowed

ITA 967/COCH/2022[2013-14]Status: DisposedITAT Cochin13 Mar 2024AY 2013-14

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmi

For Appellant: Ms. Rohini Thampi, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(3)Section 36(1)(vii)

…head ‘Theory of “real income”, as indeed ‘Applicability of section 145’ (at paras 35 to 40 of the decision). Referring to decisions in Poona Electric Company Supply Ltd. v. CIT [1965] 57 ITR 521, 530 (SC) and CWT v. Bombay Suburban Electric Supply Ltd. [1976] 103 ITR 384, 391 (Bom), holding so, the Hon'ble Apex Court further holds as under: [“38. The point to be noted is that the Income-tax is a tax on " real income", i.e., the profits arrived at on commercial principles subject to the provisions of the Income-tax Act. Therefore, if by the Explanation to section 36(1)(vii) a provision for doubtful debt is kept ou…

Muthoot Agri Projects and Hospitalities P. Ltd, Maharastra vs. ACIT, Trivandrum

In the result, the assessee’s appeal is allowed

ITA 153/COCH/2021[2014-15]Status: DisposedITAT Cochin07 Mar 2024AY 2014-15

Bench: Shri Sanjay Arora & Dr. S. Seethalakshmi

For Appellant: Sri.Anil D Nair, AdvocateFor Respondent: Sri.Sanjit Kumar Das, CIT-DR
Section 143(3)Section 56Section 57

…ons of the Act, is liable to be taxed. The matter is well settled (see, inter alia, Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC); Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577 (SC); CWT v. Bombay Suburban Electric Supply Ltd. [1976] 103 ITR 384 (Bom)). The reliance by the Revenue on the decision in Tuticorin Alkali Chemicals (supra) is opposite. So, however, in the facts of the case, as noted by it (pg. 180 E of the Reports), there was no claim by the assessee in respect of interest paid, or for that matter, any expenditure, u/s. 57. Rather, the Hon'ble Apex Court clarified that if borr…

Kerala State Financial Enterprises Limited, Thrissur vs. DCIT Circle 1(1) & Tps, Thrissur

In the result, the assessee’s appeal is dismissed

ITA 933/COCH/2022[2017-18]Status: DisposedITAT Cochin16 Jan 2024AY 2017-18

Bench: Shri Sanjay Arora & Shri Manomohan Daskerala State Financial Dy. Cit, Circle - 1(1) & Tps Enterprises Ltd. Thrissur Bhadratha, Museum Road Vs. Chembukkavu - 680020 Thrissur [Pan:Aabct3817A] (Appellant) (Respondent)

For Appellant: Shri Harikrishnanunny, CAFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 143(3)Section 36(1)(vii)

…head ‘Theory of “real income”, as indeed ‘Applicability of section 145’ (at paras 35 to 40 of the decision). Referring to decisions in Poona Electric Company Supply Ltd. v. CIT [1965] 57 ITR 521, 530 (SC) and CWT v. Bombay Suburban Electric Supply Ltd. [1976] 103 ITR 384, 391 (Bom), holding so, the Hon'ble Apex Court further holds as under: [“38. The point to be noted is that the Income-tax is a tax on " real income", i.e., the profits arrived at on commercial principles subject to the provisions of the Income-tax Act. Therefore, if by the Explanation to section 36(1)(vii) a provision for doubtful debt is kept ou…

M/S. Southern Technologies Ltd vs. Joint Commnr. of Income Tax, Coimbatore

C.A. No.-001337-001337 - 2003Supreme Court11 Jan 2010
Section 145Section 2(24)Section 36(1)(vii)Section 37Section 37(1)

…e real profits and statutory profits. The latter are statutorily fixed for a specified purpose”. To the same effect is the judgment of the Bombay High Court in the case of Commissioner of Wealth-Tax, Bombay v. Bombay Suburban Electric Supply Ltd. 103 ITR 384 at page 391, where it was observed as under: “Income Tax is a tax on the real income, i.e., profits arrived at on commercial principles subject to the provisions of the Income Tax Act, 1961. The real profits can be ascertained only by making the permissible deductions”. 47 The point to be noted is that the IT Act is a tax…

Poona Electric Company Supply Ltd. v. CIT (103 ITR 384) — Cited in 6 Judgments | BharatTax