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

The Aryapuram Co-Operative Urban Bank Ltd., Rajahmundry vs. The ACIT, Circle - 1, Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 177/VIZ/2013[2009-10]Status: DisposedITAT Visakhapatnam28 May 2018AY 2009-10

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…ciety Vs. CIT (1987)(167 ITR 565)(AP).” 10.3 The High court also took note of the following decisions of Hon’ble Supreme Court, which were referred to by the Tribunal and also the counsel for the assessee. (a) Poona Electricity Supply Co. Ltd Vs. CIT (1965)(57 ITR 521) (b) Associated Power Co. Ltd Vs. CIT (1996) (218 ITR 195) We extract below the observations made by the Hon’ble Supreme Court in this regard: “The Tribunal also referred to the decision of the Supreme Court in Poona Electric Supply Co. Ltd.’s case (supra) in support of their view. In that case, the Electricity Act provided for creating a reserve…

The Jampeta Co-Operative Urban Bank Ltd., Rajahmundry vs. The ACIT, Circle - 1, Rajahmundry

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

ITA 510/VIZ/2014[2010-11]Status: DisposedITAT Visakhapatnam28 May 2018AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble & The Jampeta Co-Operative Vs. Acit, Circle-1, Urban Bank Ltd., Jampeta, Rajahmundry. Rajahmundry. Pan No. Aaaat 4048 E (Appellant) (Respondent)

For Appellant: Shri G.V.N. Hari, AdvocateFor Respondent: Shri S. Ravi Shankar Narayan, Sr.DR
Section 143(1)Section 143(3)Section 16Section 45

…ociety Vs. CIT (1987)(167 ITR 565)(AP).” 10.3 The High court also took note of the following decisions of Hon’ble Supreme Court, which were referred to by the Tribunal and also the counsel for the assessee. (a) Poona Electricity Supply Co. Ltd Vs. CIT (1965)(57 ITR 521) (b) Associated Power Co. Ltd Vs. CIT (1996) (218 ITR 195) We extract below the observations made by the Hon’ble Supreme Court in this regard: “The Tribunal also referred to the decision of the Supreme Court in Poona Electric Supply Co. Ltd.’s case (supra) in support of their view. In that case, the Electricity Act provided for creating a reserve…

The ACIT, Circle - 1, Rajahmundry vs. M/Sthe Aryapuram Co-Oprative Urban Bank Ltd., Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 195/VIZ/2013[2009-10]Status: DisposedITAT Visakhapatnam28 May 2018AY 2009-10

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…ciety Vs. CIT (1987)(167 ITR 565)(AP).” 10.3 The High court also took note of the following decisions of Hon’ble Supreme Court, which were referred to by the Tribunal and also the counsel for the assessee. (a) Poona Electricity Supply Co. Ltd Vs. CIT (1965)(57 ITR 521) (b) Associated Power Co. Ltd Vs. CIT (1996) (218 ITR 195) We extract below the observations made by the Hon’ble Supreme Court in this regard: “The Tribunal also referred to the decision of the Supreme Court in Poona Electric Supply Co. Ltd.’s case (supra) in support of their view. In that case, the Electricity Act provided for creating a reserve…

The Aryapuram Co-Operative Urban Bank Ltd., Rajahmundry vs. The ACIT, Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 173/VIZ/2015[2011-12]Status: DisposedITAT Visakhapatnam28 May 2018AY 2011-12

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…ciety Vs. CIT (1987)(167 ITR 565)(AP).” 10.3 The High court also took note of the following decisions of Hon’ble Supreme Court, which were referred to by the Tribunal and also the counsel for the assessee. (a) Poona Electricity Supply Co. Ltd Vs. CIT (1965)(57 ITR 521) (b) Associated Power Co. Ltd Vs. CIT (1996) (218 ITR 195) We extract below the observations made by the Hon’ble Supreme Court in this regard: “The Tribunal also referred to the decision of the Supreme Court in Poona Electric Supply Co. Ltd.’s case (supra) in support of their view. In that case, the Electricity Act provided for creating a reserve…

Aryapuram Co=Op. Urbank Ltd., Rajahmundry vs. The ACIT, Rajahmundry

In the result, all the appeals filed by the assessee are partly allowed for statistical purposes; and the appeal filed by the Revenue is dismissed

ITA 517/VIZ/2014[2010-11]Status: DisposedITAT Visakhapatnam28 May 2018AY 2010-11

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Ble

For Appellant: Shri G.V.N. Hari – AdvocateFor Respondent: Shri Deba Kumar Sonawal – CIT DR
Section 143(3)Section 144Section 148Section 43Section 43B

…ciety Vs. CIT (1987)(167 ITR 565)(AP).” 10.3 The High court also took note of the following decisions of Hon’ble Supreme Court, which were referred to by the Tribunal and also the counsel for the assessee. (a) Poona Electricity Supply Co. Ltd Vs. CIT (1965)(57 ITR 521) (b) Associated Power Co. Ltd Vs. CIT (1996) (218 ITR 195) We extract below the observations made by the Hon’ble Supreme Court in this regard: “The Tribunal also referred to the decision of the Supreme Court in Poona Electric Supply Co. Ltd.’s case (supra) in support of their view. In that case, the Electricity Act provided for creating a reserve…

DCIT 1(2), Mumbai vs. Maharashtra State Elctricity Board, Mumbai

ITA 3559/MUM/2013[2006-07]Status: DisposedITAT Mumbai07 Mar 2018AY 2006-07

Bench: Shri G. S. Pannu, Am & Shri Sandeep Gosain, Jm आयकरअपीलसं./ I.T.A. No. 3559/Mum/2013 (निर्धारणवर्ा / Assessment Year:2006-07)

For Appellant: Shri H. N. Sinha, DRFor Respondent: Shri Niraj Sheth, AR
Section 143(3)Section 251(1)(a)

…ber Ltd. (1998) 148 CTR (Del) 448: (1998) 230 ITR 817 (Del), UCO Bank vs. CIT (1999) 154 CTR (SC) 88: (1999) 237 ITR 889 (SC), Godhra Electricity Co. vs. CIT (1997) 139 CTR (SC) 564: (1997) 225 ITR 746 (SC) and Poona Electricity Supply Co. Ltd. vs. CIT (1965) 57 ITR 521 (SC) relied on. (Paras 5, 5.2, 5.3, 5.9 & 5.12)" I am of the view that the impugned income is a hypothetical income until the dispute is settled. Respectfully following the above decisions, I hold that these receipts are not chargeable to Income- tax in this assessment year. In view of this, I direct the AO to delete the addition of Rs.101.01 cr…

M/S. M. Hanumantha Rao, Bellary vs. Principal Commissioner of Income Tax, Kalaburagi

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

ITA 158/BANG/2017[2012-13]Status: DisposedITAT Bangalore19 Dec 2017AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raom/S. M. Hanumatha Rao, H. No.37, W. No.17, Ground Floor, Main Road Near Park Patel Nagar, Ballari – 583101. … Appellant Pan:Aanfm 1777H Vs. Asst. Commissioner Of Income-Tax, Circle 1, Ballary. … Respondent

For Appellant: Shri. P. Dinesha, AdvocateFor Respondent: Shri. R. N. Parbat, CIT(DR)
Section 143(3)Section 263Section 37(1)

…right to receive payment, having regard to the ratio laid down by the Hon‘ble Apex Court laid down in the cases of CIT vs. Shoorji Vallabhdas & Co. (46 ITR 144), CIT vs. Birla Gwalior (P) Ltd. (89 ITR Page 12 of 13 266) Poona Electric Supply Co. Ltd. vs. CIT (57 ITR 521), R.B.Jodha Mal Kuthiala vs. CIT (82 ITR 570) and State Bank of Travancore vs. CIT (158 ITR 102). Thus, it is clear that the sale proceeds had accrued to the appellant only by virtue of the order of the Director of Department of Mines and Geology vide proceedings No.DMG/MONCOM/E-Auction/2012- 13 dated 03.01.2013. The taxability or otherwise of it…

ITO, WD-12(1), Kolkata vs. M/S White Cliff Properties (P) Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1511/KOL/2015[2006-07]Status: DisposedITAT Kolkata10 Nov 2017AY 2006-07

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi

Section 143(3)Section 251

…l application, and there is a catena of cases of this court which affirms that principle. Reference may be made to Calcutta Co. Ltd. vs. CIT [1959] 37 ITR 1 (SC), CIT vs. Bai Shirinbai Kooka [1962] 46 ITR 86 (SC), Poona Electric Supply Co. Ltd. vs. CIT [1965] 57 ITR 521 (SC), CIT vs. Birla Gwalior (P) Ltd. [1973] 89 ITR 266 (SC) and Batna Textiles vs. ITO [1975] 98 ITR 1 (Ker).” 22. In this case, it cannot be said that the right to receive accrued, before the start of construction and before the happening of certain contingencies and fulfilment of conditions stipulated in the agreement. Hence, the consideration i…

M/S. K. Chimanlal & Co., (R.F.), Ahmedabad vs. The Jt.CIT, Range-2, Ahmedabad

In the result, the appeal of the assessee is dismissed

ITA 1281/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad11 Oct 2017AY 2011-12
For Appellant: Shri S.N. Divetia, A.RFor Respondent: Prajna Madam, Sr. D.R
Section 143(2)Section 143(3)Section 234BSection 234DSection 250

…ts: - - Godhra Electric Co. Ltd. vs. CIT 225 ITR 746 (SC). - Highway construction Co. Pvt. Ltd. vs. CIT 199 ITR 702 (Guj.). - CIT vs. Motor Credit Co. Pvt. Ltd. 127 ITR 572. -H. M. Kashi Parekh & Co. vs. CIT 39 ITR 706. - Pune Electric Supply Co. Ltd. vs. CIT 57 ITR 521, 529. - CIT vs. Shoorji Vallabhdas & Co. 46 ITR 144. Decision. The rival submissions have been considered. It is a fact that the appellant -33 advanced interest free loans of Rs.60,85,704/-. The appellant was not able to give convincing reply as to why it did not charge interest on these loans. Further, the appellant submitted during appeal procee…

ITO, Pudukkottai vs. A.Anbukkannan, Pudukkottai

In the result, appeal of the Revenue is dismissed whereas

ITA 1871/CHNY/2014[2010-11]Status: DisposedITAT Chennai05 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. No.1731/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-2011 Shri. A. Anbukkannan, Vs. The Income Tax Officer, No.744, Periyar Nagar, Ward I(1) Rajagopalapuram, Purukottai. Pudukottai 622 003. आयकर अपील सं./I.T.A. No.1871/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-2011 The Income Tax Officer, Vs. Shri. A. Anbukkannan, Ward I(1) No.744, Periyar Nagar, Purukottai Rajagopalapuram, Pudukottai 622 003. [Pan Agppa 7635N] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri.S. Sridhar, Advocate
Section 131(1)

…ld. Commissioner of Income Tax (Appeals). Argument of the assessee was that the addition was purely based on imaginative figures. Relying on the judgments of Hon’ble Apex Court in the case of Poona Electric ITA Nos.1731 & 1871/2014 :- 8 -: Company vs. CIT 57 ITR 521, State Bank of Travancore vs. CIT 158 ITR 102 and Udayan Chinubhai vs. CIT 111 ITR 584, assessee contended that real income alone could be taxed and every receipt could not be considered as income. Ld. Commissioner of Income Tax (Appeals) after considering the submissions of the assessee held that ld. Assessing Officer could not bring out any…

A.Anbukkannan, Chennai vs. ITO, Pudukkottai

In the result, appeal of the Revenue is dismissed whereas

ITA 1731/CHNY/2014[2010-11]Status: DisposedITAT Chennai05 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. No.1731/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-2011 Shri. A. Anbukkannan, Vs. The Income Tax Officer, No.744, Periyar Nagar, Ward I(1) Rajagopalapuram, Purukottai. Pudukottai 622 003. आयकर अपील सं./I.T.A. No.1871/Mds/2014 "नधा"रण वष" /Assessment Year : 2010-2011 The Income Tax Officer, Vs. Shri. A. Anbukkannan, Ward I(1) No.744, Periyar Nagar, Purukottai Rajagopalapuram, Pudukottai 622 003. [Pan Agppa 7635N] (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri.S. Sridhar, Advocate
Section 131(1)

…ld. Commissioner of Income Tax (Appeals). Argument of the assessee was that the addition was purely based on imaginative figures. Relying on the judgments of Hon’ble Apex Court in the case of Poona Electric ITA Nos.1731 & 1871/2014 :- 8 -: Company vs. CIT 57 ITR 521, State Bank of Travancore vs. CIT 158 ITR 102 and Udayan Chinubhai vs. CIT 111 ITR 584, assessee contended that real income alone could be taxed and every receipt could not be considered as income. Ld. Commissioner of Income Tax (Appeals) after considering the submissions of the assessee held that ld. Assessing Officer could not bring out any…

DCIT 6(2)(1), Mumbai vs. Deloitte & Touche Consulting Inida P. Ltdervice India P.Ltd, Mumbai

The appeals of the Revenue are dismissed

ITA 4136/MUM/2015[2011-12]Status: DisposedITAT Mumbai15 Mar 2017AY 2011-12

Bench: Shri Joginder Singh & Shri N.K.Pradhan

Section 260Section 28

…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…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1130/KOL/2014[2011-12]Status: DisposedITAT Kolkata26 Oct 2016AY 2011-12

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…e out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itself has declared the interest incomes as business receipts in th…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1129/KOL/2014[2010-11]Status: DisposedITAT Kolkata26 Oct 2016AY 2010-11

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…e out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itself has declared the interest incomes as business receipts in th…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1128/KOL/2014[2009-2010]Status: DisposedITAT Kolkata26 Oct 2016AY 2009-2010

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…e out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itself has declared the interest incomes as business receipts in th…

ITO, WD-1(1), Siliguri vs. M/S Associated Contractors, Siliguri

In the result, all the appeals of revenue

ITA 1127/KOL/2014[]Status: DisposedITAT Kolkata26 Oct 2016

Bench: Shri K. Narasimha Chary, Jm & Dr. A.L.Saini, Am आयकर अपील सं./Ita Nos.1127,1128,1129 &1130/Kol/2014 ("नधा"रण वष" /Assessment Year:2008-09,2009-10,2010-11, 2011-12 ) Ito Ward-1(1), Aayakar Vs. M/S Associated Contractors, Bhawan, Paribahan Nagar, Vivekananda Mini Market, Matigara,Siliguri-Pin- Hill Cart Road, 734010 Siliguri "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaffa 1590 E .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Abhijit Dutta, Jcit,Sr.Dr "नधा"रती क" ओर से /Assessee By : Shri Somnath Ghosh, Advocate सुनवाई क" तार"ख / Date Of Hearing : 20/10/2016 घोषणा क" तार"ख/Date Of Pronouncement 26/10/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Four Appeals, Cited Above, Filed By The Revenue, Pertaining To The Assessment Years 2008-09, 2009-10, 2010-11 & 2011- 2012, Are Directed Against Orders Passed By Ld. Commissioner Of Income Tax (Appeals)-Jalpaiguri, In Appeal Nos.89,90,91&92/Cit(A)/Slg/2013- 2014, All Dated 11.03.2014, Which In Turn Arise Out Of Orders Passed By The Assessing Officer (Ao) Under Section.148/143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 12.12.2013, 12.12.2013, 12.12.2013 & 12.12.2013, Respectively.

For Appellant: Shri Somnath Ghosh, AdvocateFor Respondent: Shri Abhijit Dutta, JCIT,Sr.DR

…e out of compensation amount including enhanced compensation, and the interest earned from Centurian Bank of Punjab do not form part of the award at all. 3) CIT vs Shoorji Vallabhdas B & Co (1962) 46 ITR 144 (SC) 4) Poona Electric Supply Co Ltd vs CIT (1965)57 ITR 521 (SC) 5) Godhra Electricity Co Ltd vs CIT (1997) 225 ITR 746 All the three cases above only lays down the principle of determination of real income of an assessee, while taking care of existing constraints and exigencies that it may be subject to. In the instant case the assessee itself has declared the interest incomes as business receipts in th…

S. Mansukhlal & Co., Mumbai vs. DCIT 14(2), Mumbai

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

ITA 4793/MUM/2014[2010-11]Status: DisposedITAT Mumbai24 Oct 2016AY 2010-11

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 4793/Mum/2014 ("नधा"रण वष" / Assessment Year : 2010-11) M/S. S. Mansukhlal & Co., The Deputy Commissioner बनाम/ Srbc & Associates Llp, Of Income Tax –14(2), V. Chartered Accountants, Earnest House, Iii Floor, 12 Th Floor, The Ruby, Nariman Point, 29, Senapati Bapat Marg, Mumbai – 400 021. Dadar (West), Mumbai – 400 028. "थायी लेखा सं./Pan : Aahfs9459A .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Sanjeev Kashyap (D.R.)
Section 143(3)Section 14A

…) wherein it was held, 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. CIT, [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. CIT [1986] 158 ITR 102/24 Taxman 337 (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, in appro…

Mill Consultants & Investment P.Ltd, Mumbai vs. DCIT Cir 4(3), Mumbai

In the result, the assessee’s appeal is allowed

ITA 2792/MUM/2012[2008-09]Status: DisposedITAT Mumbai01 Jun 2016AY 2008-09
For Appellant: Shri K. GopalFor Respondent: Shri D. Prabhakar Reddy
Section 143(3)Section 145(2)

…come, relying on the decisions in the case of Godhra Electricity Co. Ltd. vs. CIT [1997] 225 ITR 746 (SC); CIT vs. Birla Gwalior (P) Ltd. [1973] 89 ITR 266 (SC); R. B. Jodha Mal Kuthiala vs. CIT [1971] 82 ITR 570; Poona Electric Supply Co. Ltd. vs. CIT [1965] 57 ITR 521 (SC); CIT vs. Shoorji Vallabhdas and Co. [1962] 46 ITR 144 (SC); and H. M. Kashiparekh and Co. Ltd. vs. CIT [1960] 39 ITR 706 (Bom). Reliance was also placed on the Accounting Standard (AS-I) notified by the Board u/s. 145(2) of the Act, which requires adoption of the accounting policies as would represent a true and fair view of the state of affa…

Sh. Harpreet Singh Puniani, Delhi vs. Pr. CIT, New Delhi

The appeal is allowed

ITA 4228/DEL/2015[2010-11]Status: DisposedITAT Delhi03 Mar 2016AY 2010-11

Bench: Shri I.C. Sudhir & Shri Prashant Maharishi Assessment Year: 2010-11 Harpreet Singh Puniani, Vs. Principal Cit, Prop. M/S. Broadband Technologies, Xvi, 84-B, Old Lajpat Rai Market, New Delhi. Delhi. (Pan: Aaipp2364E) (Appellant) (Respondent) Assessee By: Shri Manoj Kumar Mittal, Adv. Department By: Shri A.K. Saroha, Cit( Dr) Date Of Hearing : 20.01.2016 Date Of Pronouncement: 03 :03.2016 Order Per I.C. Sudhir:The Assessee Has Impugned The Revisional Order Passed Under Sec. 263 Of The Income-Tax Act, 1961 On Several Grounds Involving The Sole Issue Regarding The Validity Of The Order Passed Under Sec. 263 Of The Income-Tax Act, 1961. 2. The Assessee Has Also Moved Application For Condonation Of Delay In Filing The Present Appeal Late By 15 Days. It Has Been Explained That The Assessee Had Engaged Mr. Rakesh Kumar, Learned Ca To Represent Its Case Before The Learned Cit Against The Show-Cause Notice Issued Under Sec. 263

For Appellant: Shri Manoj Kumar Mittal, AdvFor Respondent: Shri A.K. Saroha, CIT( DR)
Section 143(1)Section 143(2)Section 154Section 263

…edings supported with the documents. Again, a detailed reply to the show-cause notice was submitted before the Learned CIT. He placed reliance on the following decisions: i) Electric Supply Co. Ltd., vs. CIT - 89 ITR 266; ii) CIT vs. Birla Gwalior Pvt. Ltd. - 57 ITR 521; iii) CIT vs. Excel Ind. Ltd. (SC) - 358 ITR 295; 7 iv ) CIT vs. Contimeters Electricals P. Ltd. - 317 ITR 249 (Del.); v ) CIT vs. Ashish Rajpal (2010) - 320 ITR 674 (Del.); & vi) CIT vs. Sunbeam Auto Ltd. - 332 ITR 167 (Del.) 8. Learned CIT(DR) on the other hand tried to justify the revisional order in question. He submitted that the Assessing O…

The Karnataka State Co-Operative Apex Bank Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, grounds of appeal Nos

ITA 1372/BANG/2014[2007-08]Status: DisposedITAT Bangalore29 Feb 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raothe Karnataka State Co-Operative Apex Bank Ltd., ‘Uthunga’, No.1, Pmk Road, Chamarajpet, Bangalore-560018. … Appellant Pan:Aabat 0269 J Vs. Deputy Commissioner Of Income-Tax, Circle 3(1), Bangalore. … Respondent

For Appellant: Shri Bharath L, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 28

…r managers as the contractual recompense for their service during the year, it is plain that the real net profit is only £9,000.” The above principle was followed subsequently by the Hon’ble Supreme Court in the case of Poona Electric Supply Co. Ltd. V.s CIT (57 ITR 521) and this principle was re-iterated again by the Hon’ble Supreme Court in the case of CIT vs. Travancore Sugars & Chemicals Ltd. (90 ITR 307). Thus, the principle laid down in all the above cases is that though an amount of expenditure is ascertained with reference to profits, it does not lose the character of expenditure. Therefore, the reasoning…