State Bank of Travancore v. CIT

158 ITR 102Supreme Court of India1986#401 most cited

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

Under the mercantile system of accounting, interest income accrues and is taxable in the year it arises, even for "sticky" or doubtful loans, as the right to receive the income is paramount, not its actual receipt, provided there is an agreement for payment.

222

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 1999 to 2026.

Also referred to as

State Bank of Travancore v CIT · 158 ITR 102 · 24 Taxmann 337 · mercantile system of accounting · accrual of interest · sticky loans · doubtful debts · right to receive income · Section 145 · Section 36(1)(vii) · Section 36(1)(viia)

Also reported as

24 Taxmann 337

Sections most often in play

Section 143(3)Section 14ASection 37(1)Section 115JBSection 36(1)(vii)Section 147Section 36(1)(viia)Section 10(34)
Read the full judgment

Issues it is cited on

section 41(4)right to receivesection 36(1)(viia)interest on securitiesmercantile system of accountingsection 36(1)(vii)profits and gains of business or professionrevenue expendituresection 145section 36(1)section 28section 36

Judgments citing State Bank of Travancore v. CIT

The Commissioner of Income Tax - International Taxation -2 vs. Nokia Corporation (Formerly Known As Nokia Network Oy)

ITA/60/2023HC Delhi21 Feb 2025

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…ITA 785/2019 & other connected matters Page 1 of 66 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: October 24, 2024 Judgment pronounced on: February 21, 2025 + ITA 785/2019 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -2 .....Appellant Through: Mr. Ruchir Bhatia, SSC. versus NOKIA NETWORK OY .....Respondent Through: Mr. Deepak Chopra, Mr. Ankit Goyal and Mr. Priyam Batnagar, Advocates. + ITA 786/2019 THE…

DCIT-3(2)(1), Aaykar Bhawan vs. Marshall Produce Brokers Company Pvt Ltd, Nariman Point

The appeal of the Revenue is dismissed

ITA 5092/MUM/2024[2017-18]Status: DisposedITAT Mumbai30 Jan 2025AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Respondent: Mr. Harsh Kothari

…Probably his submission was based on the decision of the Hon'ble Supreme Court in the case of State Bank of ision of the Hon'ble Supreme Court in the case of State Bank of ision of the Hon'ble Supreme Court in the case of State Bank of Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was held that such accrual of interest would be taxed even when the loans held that such accrual of interest would be taxed even when the loans held that such accrual of in…

Marshall Produce Brokers Company Private Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 3(2)(1), Mumbai

The appeal of the Revenue is dismissed

ITA 4918/MUM/2024[2017-18]Status: DisposedITAT Mumbai30 Jan 2025AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Respondent: Mr. Harsh Kothari

…Probably his submission was based on the decision of the Hon'ble Supreme Court in the case of State Bank of ision of the Hon'ble Supreme Court in the case of State Bank of ision of the Hon'ble Supreme Court in the case of State Bank of Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was held that such accrual of interest would be taxed even when the loans held that such accrual of interest would be taxed even when the loans held that such accrual of in…

Marshall Produce Brokers Company Private Limited, Mumbai vs. Assistant Commissioner of Income Tax Circle 3(2)(1), Mumbai

The appeal of the Revenue is dismissed

ITA 4917/MUM/2024[2016-17]Status: DisposedITAT Mumbai30 Jan 2025AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Sunil Kumar Singh ()

For Respondent: Mr. Harsh Kothari

…Probably his submission was based on the decision of the Hon'ble Supreme Court in the case of State Bank of ision of the Hon'ble Supreme Court in the case of State Bank of ision of the Hon'ble Supreme Court in the case of State Bank of Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was Travancorev. CIT [1986] 158 ITR 102 where, by majority decision, it was held that such accrual of interest would be taxed even when the loans held that such accrual of interest would be taxed even when the loans held that such accrual of in…

Union Bank of India, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad

In the result, appeal filed by the assessee in ITA

ITA 365/HYD/2018[2014-15]Status: DisposedITAT Hyderabad24 Jan 2025AY 2014-15

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.350 & 351/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Dy. C. I. T. Vs. Andhra Bank Circle-1(1) Hyderabad Hyderabad [Pan : Aabca7375C] (Appellant) (Respondent) आ.अपी.सं /Ita No.364 & 365/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Union Bank Of India Vs. Dy. C. I. T. (Erstwhile Andhra Bank) Circle-1(1) Mumbai Hyderabad [Pan : Aaacu0564G (Aabca7375C)] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri S.Ananthan & Smt.Lalitha Rameswaran, Ar रधजस् व द्वधरध/Revenue By: Shri K.Meghnath Chowhan, Cit-Dr सुिवधई की तधरीख/Date Of 05/11/2024 Hearing: घोर्णध की तधरीख/Date Of 24/01/2025 Pronouncement: आदेश/Order Per Manjunatha G., A.M

For Appellant: Shri S.Ananthan &For Respondent: Shri K.Meghnath Chowhan
Section 143(3)Section 36(1)Section 36(1)(viii)

…ten off and provision for bad debts on loans/advances, but, it cannot claim deduction towards reversal of income on its own as per its accounting policy. Therefore, by following the decision of Hon'ble Supreme Court in the case of M/s State Bank of Travancore 158 ITR 102 and also decision of the ITAT in the case of State Bank of Hyderabad in ITA Nos.893 & 894/Hyd2022 and also relying on the decision of Hon'ble Delhi High Court, has made disallowances towards interest reversal and debited to P&L Account. 13. The assessee carried the matter in appeal before the Ld. CIT(A). Before the Ld. CIT(A), the assessee submi…

Union Bank of India (Erstwhile- Andhra Bank), Mumbai vs. Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad

In the result, appeal filed by the assessee in ITA

ITA 364/HYD/2018[2013-14]Status: DisposedITAT Hyderabad24 Jan 2025AY 2013-14

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.350 & 351/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Dy. C. I. T. Vs. Andhra Bank Circle-1(1) Hyderabad Hyderabad [Pan : Aabca7375C] (Appellant) (Respondent) आ.अपी.सं /Ita No.364 & 365/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Union Bank Of India Vs. Dy. C. I. T. (Erstwhile Andhra Bank) Circle-1(1) Mumbai Hyderabad [Pan : Aaacu0564G (Aabca7375C)] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri S.Ananthan & Smt.Lalitha Rameswaran, Ar रधजस् व द्वधरध/Revenue By: Shri K.Meghnath Chowhan, Cit-Dr सुिवधई की तधरीख/Date Of 05/11/2024 Hearing: घोर्णध की तधरीख/Date Of 24/01/2025 Pronouncement: आदेश/Order Per Manjunatha G., A.M

For Appellant: Shri S.Ananthan &For Respondent: Shri K.Meghnath Chowhan
Section 143(3)Section 36(1)Section 36(1)(viii)

…ten off and provision for bad debts on loans/advances, but, it cannot claim deduction towards reversal of income on its own as per its accounting policy. Therefore, by following the decision of Hon'ble Supreme Court in the case of M/s State Bank of Travancore 158 ITR 102 and also decision of the ITAT in the case of State Bank of Hyderabad in ITA Nos.893 & 894/Hyd2022 and also relying on the decision of Hon'ble Delhi High Court, has made disallowances towards interest reversal and debited to P&L Account. 13. The assessee carried the matter in appeal before the Ld. CIT(A). Before the Ld. CIT(A), the assessee submi…

Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad vs. Andhra Bank, Hyderabad

In the result, appeal filed by the assessee in ITA

ITA 351/HYD/2018[2014-15]Status: DisposedITAT Hyderabad24 Jan 2025AY 2014-15

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.350 & 351/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Dy. C. I. T. Vs. Andhra Bank Circle-1(1) Hyderabad Hyderabad [Pan : Aabca7375C] (Appellant) (Respondent) आ.अपी.सं /Ita No.364 & 365/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Union Bank Of India Vs. Dy. C. I. T. (Erstwhile Andhra Bank) Circle-1(1) Mumbai Hyderabad [Pan : Aaacu0564G (Aabca7375C)] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri S.Ananthan & Smt.Lalitha Rameswaran, Ar रधजस् व द्वधरध/Revenue By: Shri K.Meghnath Chowhan, Cit-Dr सुिवधई की तधरीख/Date Of 05/11/2024 Hearing: घोर्णध की तधरीख/Date Of 24/01/2025 Pronouncement: आदेश/Order Per Manjunatha G., A.M

For Appellant: Shri S.Ananthan &For Respondent: Shri K.Meghnath Chowhan
Section 143(3)Section 36(1)Section 36(1)(viii)

…ten off and provision for bad debts on loans/advances, but, it cannot claim deduction towards reversal of income on its own as per its accounting policy. Therefore, by following the decision of Hon'ble Supreme Court in the case of M/s State Bank of Travancore 158 ITR 102 and also decision of the ITAT in the case of State Bank of Hyderabad in ITA Nos.893 & 894/Hyd2022 and also relying on the decision of Hon'ble Delhi High Court, has made disallowances towards interest reversal and debited to P&L Account. 13. The assessee carried the matter in appeal before the Ld. CIT(A). Before the Ld. CIT(A), the assessee submi…

Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad vs. Andhra Bank, Hyderabad

In the result, appeal filed by the assessee in ITA

ITA 350/HYD/2018[2013-14]Status: DisposedITAT Hyderabad24 Jan 2025AY 2013-14

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.350 & 351/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Dy. C. I. T. Vs. Andhra Bank Circle-1(1) Hyderabad Hyderabad [Pan : Aabca7375C] (Appellant) (Respondent) आ.अपी.सं /Ita No.364 & 365/Hyd/2018 (निर्धारण वर्ा/Assessment Year: 2013-14 & 2014-15) Union Bank Of India Vs. Dy. C. I. T. (Erstwhile Andhra Bank) Circle-1(1) Mumbai Hyderabad [Pan : Aaacu0564G (Aabca7375C)] (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee By: Shri S.Ananthan & Smt.Lalitha Rameswaran, Ar रधजस् व द्वधरध/Revenue By: Shri K.Meghnath Chowhan, Cit-Dr सुिवधई की तधरीख/Date Of 05/11/2024 Hearing: घोर्णध की तधरीख/Date Of 24/01/2025 Pronouncement: आदेश/Order Per Manjunatha G., A.M

For Appellant: Shri S.Ananthan &For Respondent: Shri K.Meghnath Chowhan
Section 143(3)Section 36(1)Section 36(1)(viii)

…ten off and provision for bad debts on loans/advances, but, it cannot claim deduction towards reversal of income on its own as per its accounting policy. Therefore, by following the decision of Hon'ble Supreme Court in the case of M/s State Bank of Travancore 158 ITR 102 and also decision of the ITAT in the case of State Bank of Hyderabad in ITA Nos.893 & 894/Hyd2022 and also relying on the decision of Hon'ble Delhi High Court, has made disallowances towards interest reversal and debited to P&L Account. 13. The assessee carried the matter in appeal before the Ld. CIT(A). Before the Ld. CIT(A), the assessee submi…

DCIT, Circle-1(1), Hyderabad vs. Prakash Nimmagadda, Hyderabad, Secunderabad

In the result, appeal filed by the Revenue is dismissed

ITA 974/HYD/2017[2008-09]Status: DisposedITAT Hyderabad16 Dec 2024AY 2008-09

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, G.आ.अपी.सं /Ita No.974/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2008-09) Dy.Cit Vs. Shri Prakash Nimmagadda Circle 1(1) Hyderabad Hyderabad Pan:Acbpn4246R (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri K.C. Devdas, Ca राज" व "ारा/Revenue By:: Dr. Meghnath Chowhan, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 06/11/2024 घोषणा की तारीख/Pronouncement: 16/12/2024 आदेश/Order Per Vijay Pal Raothis Appeal Filed By The Revenue Is Directed Against The Order, Dated 20/03/2017 Of The Learned Cit (A)-9, Hyderabad, Relating To A.Y.2008-09. 2. The Revenue Has Raised The Following Grounds:

For Appellant: Shri K.C. Devdas, CAFor Respondent: : Dr. Meghnath Chowhan, CIT(DR)
Section 17(2)(c)Section 28

…ade to Poona Electric Supply Co. Ltd. v. CIT, [1965] 57 ITR 521 Page 25 of 43 ITA No 974 of 2017 Prakash Nimmagadda (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 appropriate cases, be judged on the principles of real income theory. The majority opinion went on to say: 'What has really accrued to the assessee has to be…

Simoco Systems and Infrastructure Solutions Limited, Kolkata vs. ITO Ward 2 (1), Kolkata

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

ITA 123/KOL/2024[2018-19]Status: DisposedITAT Kolkata29 Nov 2024AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishraassessment Year: 2018-19

For Appellant: Indranil Banerjee, ARFor Respondent: Ankur Goyal, JCIT, Sr. DR
Section 115JSection 133(6)Section 143(3)Section 144BSection 250

…das & Co. (1962) 46 ITR 144 (SC), Morvi Industries Ltd. vs. CIT 1974 CTR (SC) 149: (1971) 82 ITR 835 (SC), Godhra Electricity Co. Ltd. vs. CIT (1997) 139 CTR (SC) 564: (1997) 225 ITR 746 (SC) and State Bank of Travancore vs. CIT (1986) 50 CTR (SC) 290: (1986) 158 ITR 102 (SC) that Income accrues when it becomes due but it must also be accompanied by a corresponding liability of the other party to pay the amount. Only then can it be said that for the purposes of taxability that the income is not hypothetical and it has really accrued to the assessee. Even if it is assumed that the assessee was entitled to the bene…

Loramitra Rath, Kairapari Kotsahi, Tangi vs. DCIT (Circle-1(1), Cuttack

The appeal is allowed

ITA 314/CTK/2023[2015-16]Status: HeardITAT Cuttack05 Sept 2024AY 2015-16

Bench: Before Shri George Mathan, Judicial & Manish Agarwal Manish Agarwalassessment Year : 2015-16 Loramitra Loramitra Rath, Rath, Kairapari Kairapari Vs. Dcit, Circle Dcit, Circle-1(1), Kotsahi, Tangi, Cuttack Kotsahi, Tangi, Cuttack Cuttack Pan/Gir No. No.Aebpr 6065 H (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : Shri Purnendhu Bhusan Mohanty, Ca Purnendhu Bhusan Mohanty, Ca Revenue By : Shri S.C.Mohanty, Sr S.C.Mohanty, Sr Dr

For Appellant: Shri Purnendhu Bhusan Mohanty, CAFor Respondent: Shri S.C.Mohanty, Sr
Section 48

…ccrued at all, i.e, neither accrual nor receipt of income, even if there an entry to that effect in the books of account, the same cannot be considered as income. The Hon'ble Supreme Court in the case of State Bank of Travancore vs. Commissioner of Income Tax 158 ITR 102 (SC) had an occasion to invoke the concept of real income and laid down the principles on this subject which are relevant even today. It was held [in majority view] that the question of how far the concept of real income entered into the question of taxability in the facts and circumstances of this case and how far and to what extent the concept…

The Pr. Commissioner of Income Tax -7 vs. Religare Securities Ltd

ITA - 474 / 2024HC Delhi02 Sept 2024
Section 260A

…ITA 474/2024 Page 1 of 6 $~56 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 474/2024 THE PR. COMMISSIONER OF INCOME TAX -7 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, Mr. Pratyaksh Gupta, Advs. versus RELIGARE SECURITIES LTD. .....Respondent Through: Mr. Rohit Jain, Mr. Aniket Agrawal, Mr. Abhishek Singhvi, Advs. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA % 02.09.2024 O R D E R CM APPL. 50667/2024 (819 Days Delay in Refiling) 1. Bearing in mind the disclosures…

Dy. Commissioner of Income Tax, Circle- 1(1), Hyderabad vs. Union Bank of India, Hyderabad

In the result, the appeals filed by the assessee as well as the Revenue are partly allowed for statistical purposes

ITA 1230/HYD/2017[2012-13]Status: DisposedITAT Hyderabad28 Aug 2024AY 2012-13

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.1018/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13) Andhra Bank Vs. Dy. C. I. T. Hyderabad Circle 1(1) Pan:Aabca7375C Hyderabad (Appellant) (Respondent) आ.अपी.सं /Ita No.1230/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13 ) Dy. C. I. T. Vs. Andhra Bank Circle 1(1) Hyderabad Hyderabad Pan:Aabca7375C (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Ananthan, Ca राज" व "ारा/Revenue By:: Shri Kumar Pranav, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 02/07/2024 घोषणा की तारीख/Pronouncement: 28/08/2024 आदेश/Order Per Manjunatha, G. A.M These Cross Appeals Filed By The Assessee, As Well As The Revenue, Are Directed Against The Order Dated 16/02/2016 Of Page 1 Of 59

For Appellant: Shri Ananthan, CAFor Respondent: : Shri Kumar Pranav, CIT(DR)
Section 36(1)(vi)Section 36(1)(vii)Section 36(1)(viia)Section 41(4)

…ITA Nos 1018 and 1230 of 2017 Andhra Bank आयकर अपील"य अ"धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Manjunatha, G. Accountant Member AND Shri K. Narasimha Chary, Judicial Member आ.अपी.सं /ITA No.1018/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13) Andhra Bank Vs. Dy. C. I. T. Hyderabad Circle 1(1) PAN:AABCA7375C Hyderabad (Appellant) (Respondent) आ.अपी.सं /ITA No.1230/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13 ) Dy. C. I. T. Vs. Andhra Bank Circle 1(1) Hyderabad Hyderabad PAN:AABCA7375C (Appellant) (Respondent) िनधा""रती "ारा/Assessee by: Shri Ana…

Union Bank of India, Hyderabad vs. Dy. Commissisoner of Income Tax, Circle-1(1), Hyderabad

In the result, the appeals filed by the assessee as well as the Revenue are partly allowed for statistical purposes

ITA 1018/HYD/2017[2012-13]Status: DisposedITAT Hyderabad28 Aug 2024AY 2012-13

Bench: Shri Manjunatha, G. & Shri K. Narasimha Charyआ.अपी.सं /Ita No.1018/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13) Andhra Bank Vs. Dy. C. I. T. Hyderabad Circle 1(1) Pan:Aabca7375C Hyderabad (Appellant) (Respondent) आ.अपी.सं /Ita No.1230/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13 ) Dy. C. I. T. Vs. Andhra Bank Circle 1(1) Hyderabad Hyderabad Pan:Aabca7375C (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Ananthan, Ca राज" व "ारा/Revenue By:: Shri Kumar Pranav, Cit(Dr) सुनवाई की तारीख/Date Of Hearing: 02/07/2024 घोषणा की तारीख/Pronouncement: 28/08/2024 आदेश/Order Per Manjunatha, G. A.M These Cross Appeals Filed By The Assessee, As Well As The Revenue, Are Directed Against The Order Dated 16/02/2016 Of Page 1 Of 59

For Appellant: Shri Ananthan, CAFor Respondent: : Shri Kumar Pranav, CIT(DR)
Section 36(1)(vi)Section 36(1)(vii)Section 36(1)(viia)Section 41(4)

…ITA Nos 1018 and 1230 of 2017 Andhra Bank आयकर अपील"य अ"धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Manjunatha, G. Accountant Member AND Shri K. Narasimha Chary, Judicial Member आ.अपी.सं /ITA No.1018/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13) Andhra Bank Vs. Dy. C. I. T. Hyderabad Circle 1(1) PAN:AABCA7375C Hyderabad (Appellant) (Respondent) आ.अपी.सं /ITA No.1230/Hyd/2017 (िनधा"रण वष"/Assessment Year: 2012-13 ) Dy. C. I. T. Vs. Andhra Bank Circle 1(1) Hyderabad Hyderabad PAN:AABCA7375C (Appellant) (Respondent) िनधा""रती "ारा/Assessee by: Shri Ana…

Pragati Power Corporation Ltd, New Delhi vs. ACIT, Circle 20(1), New Delhi

In the result, the appeal filed by the assessee is partly allowed as indicated above

ITA 1617/DEL/2023[2018-19]Status: DisposedITAT Delhi14 Aug 2024AY 2018-19

Bench: SHRI S.RIFAUR RAHMAN (Accountant Member), SHRI SUDHIR PAREEK (Judicial Member)

Section 115JSection 145(2)Section 32Section 36Section 36(1)(iii)Section 37Section 43ASection 46ASection 80I

…Birla Gwalior (P) Ltd. (1973) 89 ITR 266 (SC) Morvi Industies Ltd. vs CIT (1971) 82 ITR 835 (SC) Poona Electric Supply Company Ltd. vs CIT(1965) 57 ITR 521 (SC) Kashiparekh (H.M.) & Co. Ltd. vs CIT (1960) 39 ITR 706 (Bom) State Bank of Travencore vs CIT(1986) 158 ITR 102 (Ker) Supreme Court held in this case that the question, whether there was real accrual of income to the assessee Co. in respect of the enhanced charges for supply of electricity, has to be considered by taking the probability or improbability of realisation in a realistic manner. Tribunal had rightly held that the claim at the increased rate mad…

Pr. Commissioner of Income Tax-2, Delhi vs. M/S Bhishansaroop Ram

ITA/953/2019HC Delhi28 Mar 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

…income tax is a tax on real income. 21. Finally in Godhra Electricity case [Godhra Electricity Co. Ltd. v. CIT, (1997) 4 SCC 530 : (1997) 225 ITR 746] a reference was made to State Bank of Travancore v. CIT [(1986) 2 SCC 11 : 1986 SCC (Tax) 289 : (1986) 158 ITR 102] 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 appropriate cases, be judged on the principles of real income theory. The majority opinion went on to say: (State Bank of Travancore case [(1986) 2 SCC 11 : 1986 SCC (Tax)…

Milestone Dewellers Pvt. Ltd., Jaipur vs. ITO Ward 6(2), Jaipur

In the result, appeal of the assessee is allowed

ITA 565/JPR/2023[2017-18]Status: DisposedITAT Jaipur31 Oct 2023AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Manish Agarwal (C.A.)For Respondent: Shri Arvind Kumar (CIT) a
Section 143(3)Section 144BSection 147

…he subsequent year at a price less than 10 per cent of the cost. In the absence of any basis for valuing the obsolete items at 50 per cent of the cost, the Tribunal could not have upheld the findings of the Assessing Officer. State Bank of Travancore Vs. CIT 158 ITR 102 (SC) There can be no dispute with regard to the principle that if the stock in trade remained unserved or unsold, the mere book appreciation in value thereof cannot be brought to tax. Chainrup Sampatram Vs CIT [1953] 24 ITR 481 (SC) Though loss due to a fall in price below cost is allowed even if such loss has not been actually realized, no ques…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

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

ITA 340/BANG/2023[2015-16]Status: DisposedITAT Bangalore25 Aug 2023AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year : 2015-16 M/S. Rajesh Exports Ltd., The Assistant No. 4, Batavia Commissioner Chambers, Of Income Tax, Kumara Park Road, Central Circle – Kumara Park East, 1(2), Vs. Bangalore – 560 001. Bangalore. Pan: Aaacr8642N Appellant Respondent Assessee By : Shri Surya Tejas, Advocate Revenue By : Shri D.K. Mishra, Cit Dr

For Appellant: Shri Surya Tejas, AdvocateFor Respondent: Shri D.K. Mishra, CIT DR
Section 234D

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

DCIT, CC-VIII, Kolkata vs. Shri Shyam Sundar Patodia, Kolkata

In the result, all the appeals of the assessee as well as the revenue are allowed for statistical purposes

ITA 1248/KOL/2014[2010-11]Status: DisposedITAT Kolkata23 Aug 2023AY 2010-11

Bench: Shri Rajpal Yadav & Shri Girish Agrawalit(Ss)A No.111/Kol/2014 Assessment Year: 2008-09

For Appellant: Shri Miraj D. Shah, AdvocateFor Respondent: Shri Abhijit Kundu, CIT, DR
Section 143(3)Section 153ASection 234ASection 292CSection 40A(3)

…hypothetical income or whether real income has materialized or not, the correct set of facts have to be taken into account. For this assertion, he placed reliance on the decision of Hon’ble Supreme Court in the case of State Bank of Travancore Vs. CIT (1986) 158 ITR 102 (SC). He further placed reliance on the decision of Hon’ble jurisdictional High Court of Calcutta in the case of CIT Vs. Bhaskar Mitter (1994) 73 Taxman 437 (Cal), according to which, “there is no estopple by conduct against law nor is there any waiver of the legal right as much as the legal liability to be assessed otherwise than according to th…

DCIT, CC-VIII, Kolkata vs. Shri Shyam Sundar Patodia, Kolkata

In the result, all the appeals of the assessee as well as the revenue are allowed for statistical purposes

ITA 1247/KOL/2014[2008-2009]Status: DisposedITAT Kolkata23 Aug 2023AY 2008-2009

Bench: Shri Rajpal Yadav & Shri Girish Agrawalit(Ss)A No.111/Kol/2014 Assessment Year: 2008-09

For Appellant: Shri Miraj D. Shah, AdvocateFor Respondent: Shri Abhijit Kundu, CIT, DR
Section 143(3)Section 153ASection 234ASection 292CSection 40A(3)

…hypothetical income or whether real income has materialized or not, the correct set of facts have to be taken into account. For this assertion, he placed reliance on the decision of Hon’ble Supreme Court in the case of State Bank of Travancore Vs. CIT (1986) 158 ITR 102 (SC). He further placed reliance on the decision of Hon’ble jurisdictional High Court of Calcutta in the case of CIT Vs. Bhaskar Mitter (1994) 73 Taxman 437 (Cal), according to which, “there is no estopple by conduct against law nor is there any waiver of the legal right as much as the legal liability to be assessed otherwise than according to th…