State Bank of India v. CIT

157 ITR 67Supreme Court of India1986#9432 most cited

What is State Bank of India v. CIT authority for?

The way an assessee makes entries in its books of account does not determine whether income was earned or a loss was suffered. Income must either accrue or be received to be taxable.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2016 to 2025.

Also referred to as

State Bank of India v. CIT · 157 ITR 67 · book entries · income accrual · income receipt · taxable income · Section 28(iv)

Sections most often in play

Section 144C(1)Section 263Section 271(1)(c)Section 36(1)(viia)Section 41(4)

Judgments citing State Bank of India v. CIT

Shri Rajkot District Co-Operative Bank Ltd., Rajkot vs. The Deputy Commissioner of Income-Tax, Circle - 1(2), Rajkot

The appeal is dismissed

ITA 196/RJT/2024[2011-12]Status: DisposedITAT Rajkot04 Nov 2025AY 2011-12

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं./Ita No.196/Rjt/2024 ("नधा"रण वष" / Assessment Year: (2011-12) Shri Rajkot District Co-Operative Vs. The Deputy Commissioner Of Bank Ltd., Income-Tax, Circle-1(1), Jilla Bank Bhavan, Kasturba Road, Aayakar Bhavan, Race Course Ring Opp. Chaudhary High School, Road, Rajkot-360001 Rajkot-360001 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Afups2094H (Appellant) (Respondent) Appellant By : Shri D.M. Rindani, Ld. Ar Respondent By : Smt. Pallavi, Ld. Cit(Dr) : 06/08/2025 Date Of Hearing Date Of Pronouncement : 04/11/2025 आदेश / O R D E R Per, Dinesh Mohan Sinha, Jm: Captioned Appeal Filed By The Assessee, Pertaining To Assessment Year (Ay)-2018-19, Is Directed Against The Order Passed By The Commissioner Of Income Tax Office [(In Short “Ld.Cit(A)”] Vide Order Dated 29.12.2023, Which In Turn Assessment Order Passed By Income Tax Department / Assessing Officer Under Section 144C(1) Of The Income Tax Act, 1961 (In Short “The Act”), Vide Order Dated 30.03.2023 2. Grounds Of Appeal Raised By The Assessee, Are As Follows:

For Appellant: Shri D.M. Rindani, Ld. ARFor Respondent: Smt. Pallavi, Ld. CIT(DR)
Section 143(3)Section 144C(1)Section 263Section 271(1)(c)Section 36(1)Section 36(1)(viia)

…sessee has relied on the following decisions: i. CIT v. Hiralal Mittal & Sons, (1972) 86 ITR 463(AII) ii. CIT v. Chunilal V. Mehta & Sons P. Ltd. (1971) 82 ITR 54(SC) iii. CIT v. Mogul Line Ltd. (1963)46 ITR 590,600(Bom) iv. State Bank of India Vs. CIT(1996) 157 ITR 67 (SC) The issue involved in the above decisions is summarized hereunder. (i) CIT v. Hiralal Mittal & Sons, (1972) 86 ITR 463(АП) Page 16 of 33 Rajkot Dist. Co-op. Bank Ltd. The issue in the cited case was whether the assessee was entitled to the deduction of the interest claimed even though it had not made the necessary entries in its account b…

Shri Rajkot District Cooperative Bank Ltd., Rajkot-Gujarat vs. The Pr. Commr. of Income Tax-1, Rajkot-Gujarat

In the result, appeal of the assessee is dismissed

ITA 123/RJT/2016[2011-12]Status: DisposedITAT Rajkot15 Feb 2023AY 2011-12

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year :2011-12 Shri Rajkot District Cooperative Vs. Pr.Cit, Rajkot-1 Bank Ltd. Rajkot. ‘Jilla Bank Bhavan’, Kasturba Road Opp: Chaudhari High School Rajkot. Pan : Aaaar 0564 K 0 अपीलाथ"/ (Appellant) "" यथ"/(Respondent) Assesseeby : Shri S.N. Soparkar, Ld.Ar Revenue By : Shri Shramdeep Sinha, Ld.Cit-Dr सुनवाई क" तार"ख/Date Of Hearing : 17/11/2022 घोषणा क" तार"ख /Date Of Pronouncement: 15/02/2023

For Appellant: Shri S.N. Soparkar, ld.ARFor Respondent: Shri Shramdeep Sinha, ld.CIT-DR
Section 143(3)Section 263Section 36

…sessee has relied on the following decisions: i. CIT v. HiraLal Mittal & Sons, (1972) 86 ITR 463(AII) ii. CIT v. Chunilal V. Mehta & Sons P. Ltd. (1971) 82 ITR 54(SC) iii. CIT v. Mogul Line Ltd. (1963)46 ITR 590,600(Bom) iv. State Bank of India Vs. CIT(1996) 157 ITR 67 (SC) The issue involved in the above decisions is summarized hereunder: (i) CIT v. HiraLal Mittal & Sons, (1972) 86 ITR 463(AII) The issue in the cited case was whether the assessee was entitled to the deduction of the interest claimed even though it had not made the necessary entries in its account books. (ii) CIT v. Chunilal V. Mehta & Sons…

ACIT, Meerut vs. M/S. Sarva Up Gramin Bank, Meerut

In the result, the appeal of the Revenue is dismissed

ITA 1937/DEL/2016[2012-13]Status: DisposedITAT Delhi18 Dec 2019AY 2012-13

Bench: Sh. Bhavnesh Saini & Dr. B. R. R. Kumar

For Appellant: Sh. Vivek Gupta, CAFor Respondent: Ms. Ashima Neb, Sr. DR
Section 36(1)(viia)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. BHAVNESH SAINI, JUDICIAL MEMBER & DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA No. 1937/Del./2016 Asstt. Year: 2012-13 ACIT Vs Sarva UP Gramin Bank Circle 2 C-39/5, Jagriti Vihar, Meerut Meerut. (APPELLANT) (RESPONDENT) PAN No. AACAS9891G Revenue by : Ms. Ashima Neb, Sr. DR Ms. Nidhi Srivastava, CIT DR Assessee by : Sh. Vivek Gupta, CA Date of Hearing 03.12.2019 Date of Pronouncement 18.12.2019 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the Revenue against the order of the ld. CIT(Appeals)…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2416/CHNY/2019[2016-17]Status: DisposedITAT Chennai12 Dec 2019AY 2016-17

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account.” Subsequently, the Supreme Court in the case of State Bank of India v. CIT (157 ITR 67) has referred to the decision of Mogual Lines and has held as follows : ITA Nos. 2412, 2413, 2414, 2415 & 2416/Chny/2019 :- 10 -: “It is well settled that the way in which entries are made by the assessee in its books of account is not determinative of the question whether the assessee had earned any profit or suffered any loss.” Since the impugn…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2415/CHNY/2019[2015-16]Status: DisposedITAT Chennai12 Dec 2019AY 2015-16

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account.” Subsequently, the Supreme Court in the case of State Bank of India v. CIT (157 ITR 67) has referred to the decision of Mogual Lines and has held as follows : ITA Nos. 2412, 2413, 2414, 2415 & 2416/Chny/2019 :- 10 -: “It is well settled that the way in which entries are made by the assessee in its books of account is not determinative of the question whether the assessee had earned any profit or suffered any loss.” Since the impugn…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2414/CHNY/2019[2014-15]Status: DisposedITAT Chennai12 Dec 2019AY 2014-15

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account.” Subsequently, the Supreme Court in the case of State Bank of India v. CIT (157 ITR 67) has referred to the decision of Mogual Lines and has held as follows : ITA Nos. 2412, 2413, 2414, 2415 & 2416/Chny/2019 :- 10 -: “It is well settled that the way in which entries are made by the assessee in its books of account is not determinative of the question whether the assessee had earned any profit or suffered any loss.” Since the impugn…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2413/CHNY/2019[2012-13]Status: DisposedITAT Chennai12 Dec 2019AY 2012-13

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account.” Subsequently, the Supreme Court in the case of State Bank of India v. CIT (157 ITR 67) has referred to the decision of Mogual Lines and has held as follows : ITA Nos. 2412, 2413, 2414, 2415 & 2416/Chny/2019 :- 10 -: “It is well settled that the way in which entries are made by the assessee in its books of account is not determinative of the question whether the assessee had earned any profit or suffered any loss.” Since the impugn…

DCIT Corporate Circle 2(1), Chennai vs. The India Cements Ltd., Chennai

In the result, the appeal of the Revenue in I

ITA 2412/CHNY/2019[2011-12]Status: DisposedITAT Chennai12 Dec 2019AY 2011-12

Bench: Shri George Mathan & Shri S. Jayaraman

For Respondent: Mr. Saroj Kumar, Advocate

…resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account.” Subsequently, the Supreme Court in the case of State Bank of India v. CIT (157 ITR 67) has referred to the decision of Mogual Lines and has held as follows : ITA Nos. 2412, 2413, 2414, 2415 & 2416/Chny/2019 :- 10 -: “It is well settled that the way in which entries are made by the assessee in its books of account is not determinative of the question whether the assessee had earned any profit or suffered any loss.” Since the impugn…

Achla Dhawan vs. Income Tax Officer

The appeal of the assessee are dismissed

ITA 2165/DEL/2008[2000-2001]Status: DisposedITAT Delhi09 Aug 2018AY 2000-2001

Bench: Shri S. K. Yadav & Shri Prashant Maharishi

For Appellant: Shri K. Sampath, Adv. &For Respondent: Shri S. L. Anuragi, Sr. D. R
Section 143(3)Section 148Section 68

…gements, inter alia - ITA. 2165 (Del) of 2008. Smt. Achla Dhawan, Meerut. 12 ( Durga Prasad More; 82 ITR 540 (SC); ( i Mcdowcll & Co., 165 IT R 227 (SC); i ) ( A. Raman & Co. 67 ITR 11 (SC); > i ( Play World Electronics Pvt. Ltd.; 184 ITR 308 ) i i ( S.B.I, 157 ITR 67 (SC); i v v ( Shri Meenakshi Mills Ltd., 63 ITR 609 (SC). ) ) ) v i ) All these pithy judgements underline the importance of dictum that it is the substance, and not form, of a transaction, which is important. In this case, the impugned gift has been part of a gift scandal; in the „substance‟, that cannot be ignored. So, even if gift has been give…

M/S Givo Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal filed by the assessee stands allowed for statistical purposes

ITA 2041/DEL/2013[2006-07]Status: DisposedITAT Delhi27 Jul 2016AY 2006-07

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

For Appellant: Shri Vinod Kumar Bindal, CAFor Respondent: Shri T. Vasanthan, Sr. DR
Section 143(1)Section 143(2)Section 41(1)

…T.A.No.2041/Del/2013 (v)It is well-settled that the way in which entries are made by the assessee in its books of account is not determinative of the question whether the assessee has earned any profit or suffered any loss - State Bank of India v. CIT (1986) 157 ITR 67 (SC). (vi)The matter of taxability cannot be decided on the basis of the entries which the assessee may choose to make in his accounts but has to be decided in accordance with the provisions of law. CIT v. Mogul Line Ltd. [1962] 46 ITR 59 (Born.). (vii)Having regard to be characteristics of mesne profit there can be no doubt that they are also a…

Nhpc Ltd., Faridabad vs. ACIT, Faridabad

In the result, appeals of the assessee in ITA Nos

ITA 433/DEL/2013[2004-05]Status: DisposedITAT Delhi08 Feb 2016AY 2004-05

Bench: Sh. H.S. Sidhu, Judicialmember & Sh. Prashant Maharishi

Section 115JSection 154Section 234B

…C) and that mode of book entries is generally not conclusive with regard to the true nature of transactions; CIT Vs. India Discount Co. Ltd. (75 ITR 191 (SC); Chowringhee Sales, Bureau (P) Ltd Vs. CIT (1973) 87 ITR 542 (SC), State Bank of India Vs. CIT (1986) 157 ITR 67 (SC). In this backdrop, how the „book profit' of an accountant is different from that of a taxman? The legislature while for MAT was fully aware of the considerations, which influence an accountant‟s casting of statement of affairs as well as ingenuity of human nature to devise ways to circumvent the law. Therefore, in adopting accountant's book p…

State Bank of India v. CIT (157 ITR 67) — Cited in 11 Judgments | BharatTax