Poona Electric Supply Co. Ltd. v. CIT

57 ITR 521Supreme Court of India1965#816 most cited

What is Poona Electric Supply Co. Ltd. v. CIT authority for?

Income tax is levied on real income, which represents profits determined by ordinary commercial principles after permissible deductions, considering the probability of realization. This principle distinguishes real profits from statutory profits specified for other purposes under the Income-tax Act.

126

judgments rely on this decision, according to BharatTax’s citation analysis of 366,418 Indian tax judgments — from 2010 to 2026.

Also referred to as

Poona Electric Supply Co. Ltd. v. CIT · 57 ITR 521 · real income theory · commercial principles · determination of income · permissible deductions · probability of realization · business income · mercantile system of accounting · statutory profits distinction

Sections most often in play

Section 143(3)Section 115BBESection 132Section 133ASection 143(2)Section 147Section 11Section 119
Read the full judgment

Issues it is cited on

section 28(iv)explanation to section 37surrender of incomeright to receiveprincipal officersection 192section 30section 40(a)(i)mercantile system of accountingrejection of books of accountbeneficial ownerfees for technical services

Judgments citing Poona Electric Supply Co. Ltd. v. CIT

Shri Shyamsundar Soni Karta HUF, Bikaner vs. ACIT, Circle, Bikaner

In the results the appeal filed by the

ITA 64/JODH/2023[2016-17]Status: DisposedITAT Jodhpur07 Aug 2023AY 2016-17

Bench: Its Hearing Before Your Honours.”

Section 115BSection 131Section 133ASection 139(1)Section 147Section 148Section 234A

…psetting the said view of the Tribunal.—CIT vs. Godhra Electricity Co. Ltd. (1983) 140 ITR 657 (Guj) ;CIT vs. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 (SC) CIT vs. Birla Gwalior (P) Ltd. (1973) 89 ITR 266 (SC) ; Poona Electric Supply Co. Ltd. vs. CIT (1965) 57 ITR 521 (SC) State Bank of Travancore vs. CIT (1986) 158 ITR 102 (SC) and H.M. Kashiparekh & Co. Ltd. vs. CIT (1960) 39 ITR 706 (Bom) : TC 39R.791 applied. " Highway Construction Company P.Ltd. vs. CIT 199 ITR 702 • In view of the aforesaid submissions and judgments, it is crystal clear that the impugned addition of alleged income made is not the real in…

Shri Shyamsundar Soni Karta HUF, Bikaner vs. ACIT, Circle, Bikaner

In the results the appeal filed by the

ITA 63/JODH/2023[2015-16]Status: DisposedITAT Jodhpur07 Aug 2023AY 2015-16

Bench: Its Hearing Before Your Honours.”

Section 115BSection 131Section 133ASection 139(1)Section 147Section 148Section 234A

…psetting the said view of the Tribunal.—CIT vs. Godhra Electricity Co. Ltd. (1983) 140 ITR 657 (Guj) ;CIT vs. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 (SC) CIT vs. Birla Gwalior (P) Ltd. (1973) 89 ITR 266 (SC) ; Poona Electric Supply Co. Ltd. vs. CIT (1965) 57 ITR 521 (SC) State Bank of Travancore vs. CIT (1986) 158 ITR 102 (SC) and H.M. Kashiparekh & Co. Ltd. vs. CIT (1960) 39 ITR 706 (Bom) : TC 39R.791 applied. " Highway Construction Company P.Ltd. vs. CIT 199 ITR 702 • In view of the aforesaid submissions and judgments, it is crystal clear that the impugned addition of alleged income made is not the real in…

Shri Shyamsundar Soni Karta HUF, Bikaner vs. ACIT, Circle, Bikaner

In the results the appeal filed by the

ITA 62/JODH/2023[2014-15]Status: DisposedITAT Jodhpur07 Aug 2023AY 2014-15

Bench: Its Hearing Before Your Honours.”

Section 115BSection 131Section 133ASection 139(1)Section 147Section 148Section 234A

…psetting the said view of the Tribunal.—CIT vs. Godhra Electricity Co. Ltd. (1983) 140 ITR 657 (Guj) ;CIT vs. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 (SC) CIT vs. Birla Gwalior (P) Ltd. (1973) 89 ITR 266 (SC) ; Poona Electric Supply Co. Ltd. vs. CIT (1965) 57 ITR 521 (SC) State Bank of Travancore vs. CIT (1986) 158 ITR 102 (SC) and H.M. Kashiparekh & Co. Ltd. vs. CIT (1960) 39 ITR 706 (Bom) : TC 39R.791 applied. " Highway Construction Company P.Ltd. vs. CIT 199 ITR 702 • In view of the aforesaid submissions and judgments, it is crystal clear that the impugned addition of alleged income made is not the real in…

Shri Shyamsundar Soni Karta HUF, Bikaner vs. ACIT, Circle, Bikaner

In the results the appeal filed by the

ITA 61/JODH/2023[2013-14]Status: DisposedITAT Jodhpur07 Aug 2023AY 2013-14

Bench: Its Hearing Before Your Honours.”

Section 115BSection 131Section 133ASection 139(1)Section 147Section 148Section 234A

…psetting the said view of the Tribunal.—CIT vs. Godhra Electricity Co. Ltd. (1983) 140 ITR 657 (Guj) ;CIT vs. Shoorji Vallabhdas & Co. (1962) 46 ITR 144 (SC) CIT vs. Birla Gwalior (P) Ltd. (1973) 89 ITR 266 (SC) ; Poona Electric Supply Co. Ltd. vs. CIT (1965) 57 ITR 521 (SC) State Bank of Travancore vs. CIT (1986) 158 ITR 102 (SC) and H.M. Kashiparekh & Co. Ltd. vs. CIT (1960) 39 ITR 706 (Bom) : TC 39R.791 applied. " Highway Construction Company P.Ltd. vs. CIT 199 ITR 702 • In view of the aforesaid submissions and judgments, it is crystal clear that the impugned addition of alleged income made is not the real in…

Measage G. G Oils & Fats Private Limited, Bathinda vs. Deputy Commissioner of Income Tax Circle- 1, Bathinda

In the result, the appeals of the assessee bearing ITA No

ITA 513/ASR/2019[2016-17]Status: DisposedITAT Amritsar11 Jul 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjeei.T.A. No.189/Asr/2018 Assessment Years: 2014-15

Section 143(3)Section 2(22)(e)Section 250

…the genuineness of the loan/ advance, and therefore considered. The same would not carry the assessee’scase further, as would even otherwise be apparent from the host of decisions by the Apex Court. As explained in Poona Electric Supply Co Ltd. v. CIT [1965] 57 ITR 521 (SC), the concept of ‘real income’ is subject to the provisions of the Act. The loan or advance being both ways would not carry any special significance in the context of the provision inasmuch as both qualify, independently, to be a loan or advance, which in the present case is with interest, further, establishing, if it was required, the payment…

Mesers G.G Contineental Trades Pvt.Ltd, Bathinda vs. Deputy Commissioner of Income Tax, Circle-I, Bathinda

In the result, the appeals of the assessee bearing ITA No

ITA 189/ASR/2018[2014-15]Status: DisposedITAT Amritsar11 Jul 2023AY 2014-15

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjeei.T.A. No.189/Asr/2018 Assessment Years: 2014-15

Section 143(3)Section 2(22)(e)Section 250

…the genuineness of the loan/ advance, and therefore considered. The same would not carry the assessee’scase further, as would even otherwise be apparent from the host of decisions by the Apex Court. As explained in Poona Electric Supply Co Ltd. v. CIT [1965] 57 ITR 521 (SC), the concept of ‘real income’ is subject to the provisions of the Act. The loan or advance being both ways would not carry any special significance in the context of the provision inasmuch as both qualify, independently, to be a loan or advance, which in the present case is with interest, further, establishing, if it was required, the payment…

ACIT, Circle 8(2), New Delhi vs. Etawah Chakeri (Kanpur) Highway Pvt. Ltd., New Delhi

In the result, appeal of Revenue is dismissed

ITA 9200/DEL/2019[2015-16]Status: DisposedITAT Delhi25 May 2023AY 2015-16

Bench: Sh. Anil Chaturvedi & Sh. Anubhav Sharmaacit Vs. Etawah Chakeri (Kanpur) Circle – 8(2), Highway Pvt. Ltd. New Delhi Ose Commercial Block, Asset 5B, Aerocity, Hospitality, District, Igi Pan No. Aacce 8963 D Airport, New Delhi – 110 037 (Appellant) (Respondent) Assessee By Shri K. V. S. R. Krishna, C.A. Revenue By Shri Javed Akhter, Cit-D.R. Date Of Hearing: 22.05.2023 Date Of Pronouncement: 25.05.2023

Section 143(3)

…cost capitalized by it. Due to the terms & conditions of the CA and the Escrow agreement, the appellant is not earning any real income. The AR has rightly relied upon the decision of Hon'ble Supreme Court in the case of Poona Electric Supply Co. Ltd. vs. CIT, 57 ITR 521 (SC) and other decisions in this regard. 6.4.5 It is also observed that in the remand report, the AO has also relied upon the judgment of Hon'ble Madras High Court in the case of Tuticorin Alkali Chemicals and Fertilisers Ltd. vs. CIT, 227 ITR 172. In this regard, it is observed that in the case of Tuticorin Alkali vs. CIT, funds were found to be…

Sanguine Media Limited, Chennai vs. ITO, Ncw-20(5), Chennai

In the result, the appeal stand partly allowed in terms of our above order

ITA 882/CHNY/2020[2011-12]Status: DisposedITAT Chennai31 Jan 2023AY 2011-12

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri Neeraj Mangala (C.A)-Ld. ARFor Respondent: Shri S.Marudhu Pandyan (CIT) –Ld. DR
Section 131Section 132Section 143(3)Section 148Section 151Section 68

…ial assessments of the assessee: - (i) CIT vs Shoorji Vallabhdas & Co., 46 ITR 144 (SC) (1962) (ii) CIT vs Birla Gwalior (P) Ltd, 89 ITR 266 (SC) (1973) (iii) HM Kashiparekh & Co. Ltd vs CIT, 39 ITR 706 (BOM) (1960) (iv) Poona Electric Supply Co. Ltd vs CIT, 57 ITR 521 (SC) (1965) (v) CIT vs Birla Gwalior (P) Ltd, 78 ITR 788 (CAL), 1970 (vi) Sanjeev Woollen Mills vs CIT, (2005) 279 ITR 434 (SC) 8. The Mumbai Bench of Tribunal in the case of one such entities i.e., DCIT vs. M/s Empower India Ltd. (ITA Nos. 3205/Mum/2019 & ors. order dated 23.10.2019 for AY 2011-12) confirmed the first appellate order in estimatin…

ACIT, New Delhi vs. Shri Harish Bhandari, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 3049/DEL/2016[2007-08]Status: DisposedITAT Delhi03 Jan 2023AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. P. C. Yadav, AdvFor Respondent: Sh. Shashi Bhushan Shukla, CIT DR
Section 132Section 17(2)(vi)Section 28

…ter referring to Morvi Industries, 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. vs. Commissioner of Income Tax, [1965] 57 ITR 521 (SC) wherein it was held that income tax is a tax on real income, the apex Court then considered the facts of the case and came to the conclusion (in Godhra Electricity) that no real income had accrued to the assessee in respect of the enhanced charges for a variety of reasons. The apex Court took the view that "one has to look at things from a pr…

C.U. Inspections & Certifications India Pvt. Ltd, Mumbai vs. ACIT 15(1) (2), Mumbai

In the result, all the appeals of the assessee are allowed

ITA 1633/MUM/2022[2014-15]Status: DisposedITAT Mumbai29 Dec 2022AY 2014-15

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1633/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2014-15) & आयकर अपील सं/ I.T.A. No.1634/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2015-16) Cu Inspections & बिधम/ Acit-15(1)(2) Certifications India Pvt. Ltd. Room No. 483, Aayakar Vs. 2201, 2205,2206, 22Nd Bhavan, Maharshi Karve Floor, 2301 To 2306 23Rd Road, Mumbai-400020. Floor, B Wing, Arihant Aura, Plot No. 13/1, Ttc, Opp Turbhe Railway Station, Thane Belapur Road, Midc Side, Turbhe Navi Mumbai-400705. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaecc7885N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri H. N. Motiwala Revenue By: Shri Hiren Bhatt (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 31/10/2022 घोषणा की तारीख /Date Of Pronouncement: 29/12/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Appeals Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/(Nfac), Delhi Dated 18.05.2022 & For Ay. 2014-15 Respectively.

For Appellant: Shri H. N. MotiwalaFor Respondent: Shri Hiren Bhatt (Sr. AR)
Section 143(3)

…ccrued during the year, these are considered together and adjudicated as under: 6.2 It is well settled law that only Real income is taxable under the Income-tax Act. Way back in 1965 the Hon'ble Supreme Court observed in Poona Electric Supply Co. Ltd. v. CIT [57 ITR 521 (SC)] that-"Income-tax is a tax on the A.Ys. 2014-15 & 2015-16 CU Inspections and Certifications India real income, i.e. the profits arrived at on commercial principles subject to the provisions of the Income. Tax Act. The concept of real income was further elaborated by the Hon'ble Supreme Court in its landmark judgment of State Bank of Travancor…

Income Tax Officer Ward- Seoni, Seoni vs. Jila Sahkari Kendriya Bank Maryadit, Seoni

In the result, all the Appeals and CO (# 7/2018) are allowed for statistical purposes, and CO (# 5/2018) is partly allowed for statistical purposes

ITA 99/JAB/2018[2013-14]Status: DisposedITAT Jabalpur20 Apr 2022AY 2013-14

Bench: Shri Sanjay Arora, Hon’Ble & Shri Manomohan Das, Hon'Ble

For Appellant: Shri B.Ganguly, AdvocateFor Respondent: Shri Shravan Ku. Gotru, CIT-DR
Section 36(1)(viia)Section 37(1)Section 43D

…lment of certain conditions, would not mean that same could be computed de hors the provisions of the Act. It is the real income, subject to the provisions of the Act, which is to be brought to tax, as explained in Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC), wherein again there was a conflict between the income as per the Act, and that worked with reference to the mandate of the Regulator. The issue, it may be appreciated, is not if the assessee is a banking company or not, but if a ‘cooperative bank’, separately defined under the Act, is included within ambit of the provision for the relevant y…

Income Tax Officer Ward- Seoni, Seoni vs. Jila Sahkari Kendriya Bank Maryadit, Seoni

In the result, all the Appeals and CO (# 7/2018) are allowed for statistical purposes, and CO (# 5/2018) is partly allowed for statistical purposes

ITA 97/JAB/2018[2009-10]Status: DisposedITAT Jabalpur20 Apr 2022AY 2009-10

Bench: Shri Sanjay Arora, Hon’Ble & Shri Manomohan Das, Hon'Ble

For Appellant: Shri B.Ganguly, AdvocateFor Respondent: Shri Shravan Ku. Gotru, CIT-DR
Section 36(1)(viia)Section 37(1)Section 43D

…lment of certain conditions, would not mean that same could be computed de hors the provisions of the Act. It is the real income, subject to the provisions of the Act, which is to be brought to tax, as explained in Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC), wherein again there was a conflict between the income as per the Act, and that worked with reference to the mandate of the Regulator. The issue, it may be appreciated, is not if the assessee is a banking company or not, but if a ‘cooperative bank’, separately defined under the Act, is included within ambit of the provision for the relevant y…

Income Tax Officer Ward- Seoni, Seoni vs. Jila Sahkari Kendriya Bank Maryadit, Seoni

In the result, all the Appeals and CO (# 7/2018) are allowed for statistical purposes, and CO (# 5/2018) is partly allowed for statistical purposes

ITA 100/JAB/2018[2014-15]Status: DisposedITAT Jabalpur20 Apr 2022AY 2014-15

Bench: Shri Sanjay Arora, Hon’Ble & Shri Manomohan Das, Hon'Ble

For Appellant: Shri B.Ganguly, AdvocateFor Respondent: Shri Shravan Ku. Gotru, CIT-DR
Section 36(1)(viia)Section 37(1)Section 43D

…lment of certain conditions, would not mean that same could be computed de hors the provisions of the Act. It is the real income, subject to the provisions of the Act, which is to be brought to tax, as explained in Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC), wherein again there was a conflict between the income as per the Act, and that worked with reference to the mandate of the Regulator. The issue, it may be appreciated, is not if the assessee is a banking company or not, but if a ‘cooperative bank’, separately defined under the Act, is included within ambit of the provision for the relevant y…

George Maijo Industries (P) Ltd., Chennai vs. ACIT, CC-II (1), Chennai

In the result, both the appeals filed by the assessee are allowed

ITA 2959/CHNY/2019[2016-17]Status: DisposedITAT Chennai06 Apr 2022AY 2016-17

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri Vikram VijayaraghavanFor Respondent: Shri G. Johnson, Addl. CIT
Section 143(3)

…after referring to Morvi Industries 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. Commissioner of Income Tax, [1965] 57 ITR 521 (SC) wherein it was held that income tax is a tax on real income. 25. Finally a reference was made to State Bank of Travancore v. Commissioner of Income Tax, [1986] 158 ITR 102 (SC) wherein the majority view was that accrual of income must be real, taking into account the actuality of the situation; whether the accrual had taken place or not must…

George Maijo Industries (P) Ltd., Chennai vs. ACIT, CC-II (1), Chennai

In the result, both the appeals filed by the assessee are allowed

ITA 2958/CHNY/2019[2015-16]Status: DisposedITAT Chennai06 Apr 2022AY 2015-16

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwal

For Appellant: Shri Vikram VijayaraghavanFor Respondent: Shri G. Johnson, Addl. CIT
Section 143(3)

…after referring to Morvi Industries 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. Commissioner of Income Tax, [1965] 57 ITR 521 (SC) wherein it was held that income tax is a tax on real income. 25. Finally a reference was made to State Bank of Travancore v. Commissioner of Income Tax, [1986] 158 ITR 102 (SC) wherein the majority view was that accrual of income must be real, taking into account the actuality of the situation; whether the accrual had taken place or not must…

DCIT 3(3)(2), Mumbai vs. Sofdel Systems P..Ltd, Mumbai

In the result, appeal by the Revenue being ITA no

ITA 3618/MUM/2017[2010-11]Status: DisposedITAT Mumbai16 Mar 2022AY 2010-11

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Tejinder Pal Singh
Section 143(3)Section 144C(1)Section 144C(13)Section 250Section 92C

…High Court held as under: '77. As a concept and principle Chapter X does not artificially broaden, expand or deviate from the concept of "real income". "Real income", as held by the Supreme Court in Poona Electricity Supply Company Limited versus CIT, [1965J 57 ITR 521 (SC), means profits arrived at on commercial principles, subject to the provisions of the Act. Profits and gains should be true and correct profits and gains, neither under nor over stated. Arm's length price seeks to correct distortion and shifting of profits to tax the actual income earned by a resident/domestic AE. The profit which would have a…

Trigyn Technologies Ltd., Mumbai vs. ACIT 11(3)(1), Mumbai

In the result, assessee‟s appeal is partly allowed in terms indicated above

ITA 6585/MUM/2019[2004-05]Status: DisposedITAT Mumbai04 Mar 2022AY 2004-05

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Vijay MehtaFor Respondent: Shri Tejinder Pal Singh
Section 143(3)Section 250(6)Section 92C

…High Court held as under: '77. As a concept and principle Chapter X does not artificially broaden, expand or deviate from the concept of "real income". "Real income", as held by the Supreme Court in Poona Electricity Supply Company Limited versus CIT, [1965J 57 ITR 521 (SC), means profits arrived at on commercial principles, subject to the provisions of the Act. Profits and gains should be true and correct profits and gains, neither under nor over stated. Arm's length price seeks to correct distortion and shifting of profits to tax the actual income earned by a resident/domestic AE. The profit which would have a…

M/S Ambika Transport Co vs. Income Tax Officer

In the result, both the appeals by the assessee are dismissed

ITA 188/JAB/2013[2003-04]Status: DisposedITAT Jabalpur16 Feb 2022AY 2003-04

Bench: Sh. Sanjay Arora, Hon'Ble

Section 143(3)Section 260ASection 40Section 44A

…t the assessment of income under the Act is to be, subject to the provisions of the Act, of the real income, for which reference may be made to section 5 defining the scope of ‘total income’ under the Act (also see Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC)). The argument of giving cognizance to the returned income de hors the audited accounts, which is admittedly higher than the presumptive rate u/s. 44AE, can hardly have the sanction of law. 3.3 I, therefore, have no hesitation in, notwithstanding that the appeals have been preferred by the assessee against the order by the Hon'ble jurisdictio…

M/S Ambika Transport Co vs. Income Tax Officer

In the result, both the appeals by the assessee are dismissed

ITA 187/JAB/2013[2002-03]Status: DisposedITAT Jabalpur16 Feb 2022AY 2002-03

Bench: Sh. Sanjay Arora, Hon'Ble

Section 143(3)Section 260ASection 40Section 44A

…t the assessment of income under the Act is to be, subject to the provisions of the Act, of the real income, for which reference may be made to section 5 defining the scope of ‘total income’ under the Act (also see Poona Electric Supply Co. Ltd. v. CIT [1965] 57 ITR 521 (SC)). The argument of giving cognizance to the returned income de hors the audited accounts, which is admittedly higher than the presumptive rate u/s. 44AE, can hardly have the sanction of law. 3.3 I, therefore, have no hesitation in, notwithstanding that the appeals have been preferred by the assessee against the order by the Hon'ble jurisdictio…

M/S Vysya Co-Operative Bank Limited, Tumkur vs. Assistant Commissioner of Income Tax Circle-1, Tumkur

ITA 2392/BANG/2018[2015-16]Status: DisposedITAT Bangalore22 Nov 2021AY 2015-16

Bench: Shri Chandra Poojari & Shri George George K.Assessment Year : 2015-16

For Appellant: Shri T. Ravindra, CAFor Respondent: Shri Sankarganesh, Jt.CIT(DR)(ITAT), Bengaluru
Section 37Section 4Section 57Section 57(4)(a)Section 80P(4)

…te to the Cooperative Education Fund under certain contingencies and is a statutory liability which is an Page 3 of 8 overriding charge on the income or profits of the society. In somewhat similar circumstances, in Poona Electric Supply Co. Ltd. v. CIT[1965] 57 ITR 521, the Supreme Court has held that the assessee is a commercial undertaking carrying on the business of supply of electricity in accordance with the provisions of the Electricity (Supply) Act. Certain amounts were credited by it to "the consumers' benefit reserve account" which was part of the excess amount paid to it and reserved to be returned to…