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

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

In the results the appeal filed by the

ITA 67/JODH/2023[2019-20]Status: DisposedITAT Jodhpur07 Aug 2023AY 2019-20

Bench: Its Hearing Before Your Honours.”

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

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

In the results the appeal filed by the

ITA 66/JODH/2023[2018-19]Status: DisposedITAT Jodhpur07 Aug 2023AY 2018-19

Bench: Its Hearing Before Your Honours.”

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

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

In the results the appeal filed by the

ITA 65/JODH/2023[2017-18]Status: DisposedITAT Jodhpur07 Aug 2023AY 2017-18

Bench: Its Hearing Before Your Honours.”

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

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

…lectricity 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 income but it only represents an imaginary and hypothetica…

Assistant Commissioner of Income Tax Central Circle-1, Jalandhar vs. M/S the Citizen Urban Co- Operative Bank Limited, Jalandhar

In the result, the appeal is allowed

ITA 62/ASR/2023[2017-18]Status: DisposedITAT Amritsar15 Jun 2023AY 2017-18

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 145Section 45Q

…has not accrued in view of the precarious financial position of the borrower, even though I.T.A. No. 62/Asr/2023 Assessment Year: 2017-18 the tax payer was following the mercantile system of accounting. In this decision, “State Bank of Travancore vs. CIT”, 158 ITR 102 (SC) has been distinguished alongwith “M/s Southern Technologies Ltd. vs. JCIT”, 230 ITR 577 (SC). 7. The above position has duly been taken into consideration by the ld. CIT(A) while correctly deleting the addition made. Therefore, the ld. CIT(A)’s order on this ground no. 1 is upheld. 11. In this regard, the AO, while making the addition, place…

Assistant Commissioner of Income Tax Circle-1, Jammu vs. Gravita Metal Inc, Kathua

ITA 594/ASR/2019[2016-17]Status: DisposedITAT Amritsar15 Jun 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: Shri. P.C. Parwal, CAFor Respondent: Shri Rohit Mehra, CIT DR
Section 10Section 2(24)Section 2(24)(xviii)

…by him cannot, therefore, be regarded as conclusive one way or the other. What is necessary to be considered is the true nature of the transaction and whether in fact it has resulted in profit or loss to the assessee. State Bank of Travencore Vs. CIT (1986) 158 ITR 102 (SC) Some of the propositions laid by the Supreme Court which are relevant for the case are as under:- (1) It is the income which has really accrued or arisen to the assessee that is taxable. Whether the income has really accrued or arisen to the assessee must be judged in the light of the reality of the situation. (2) The concept of real incom…

Measage Gravita Metal Inc, Kathua vs. Income Tax Officer Ward- 1(4), Kathua

ITA 587/ASR/2019[2016-17]Status: DisposedITAT Amritsar15 Jun 2023AY 2016-17

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

For Appellant: Shri. P.C. Parwal, CAFor Respondent: Shri Rohit Mehra, CIT DR
Section 10Section 2(24)Section 2(24)(xviii)

…by him cannot, therefore, be regarded as conclusive one way or the other. What is necessary to be considered is the true nature of the transaction and whether in fact it has resulted in profit or loss to the assessee. State Bank of Travencore Vs. CIT (1986) 158 ITR 102 (SC) Some of the propositions laid by the Supreme Court which are relevant for the case are as under:- (1) It is the income which has really accrued or arisen to the assessee that is taxable. Whether the income has really accrued or arisen to the assessee must be judged in the light of the reality of the situation. (2) The concept of real incom…

Asst CIT Cir 2(2)(1), Mumbai vs. State Bank of India, Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 4564/MUM/2016[2009-10]Status: DisposedITAT Mumbai06 Jun 2023AY 2009-10

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: S/Shri P.J. Pardiwala a/w Ninad PatadeFor Respondent: Ms. Surabhi Sharma
Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.3645/Mum./2016 (Assessment Year : 2009–10) State Bank of India Finance Reporting & Taxation Department 3rd Floor, Corporate Centre ……………. Appellant Madam Cama Road, Nariman Point Mumbai 400 021 PAN – AAACS8577K v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2)(1), Mumbai ITA no.4564/Mum./2016 (Assessment Year : 2009–10) Asstt. Commissioner of Income Tax ……………. Appellant Circle–2(2)(1), Mumbai v/s State Bank of India Finance Reporting & Taxat…

State Bank of India, Mumbai vs. Addl CIT RG 2(2), Mumbai

In the result, the appeal by the Revenue is partly allowed for statistical purposes

ITA 3645/MUM/2016[2009-10]Status: DisposedITAT Mumbai06 Jun 2023AY 2009-10

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: S/Shri P.J. Pardiwala a/w Ninad PatadeFor Respondent: Ms. Surabhi Sharma
Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 36(1)Section 36(1)(vii)Section 36(1)(viia)

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA no.3645/Mum./2016 (Assessment Year : 2009–10) State Bank of India Finance Reporting & Taxation Department 3rd Floor, Corporate Centre ……………. Appellant Madam Cama Road, Nariman Point Mumbai 400 021 PAN – AAACS8577K v/s Dy. Commissioner of Income Tax ……………. Respondent Circle–2(2)(1), Mumbai ITA no.4564/Mum./2016 (Assessment Year : 2009–10) Asstt. Commissioner of Income Tax ……………. Appellant Circle–2(2)(1), Mumbai v/s State Bank of India Finance Reporting & Taxat…

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)

…nce is made to the decision of Hon'ble Allahabad High Court in the case of Bhumi Sudhar Nigam vs CIT 2005 144 TAXMAN 94 All, in which the Hon'ble court has discussed the various decisions of Supreme Court in the cases of State Bank of Travancore v. CIT (1986) 158 ITR 102, State of Maharashtra v. Ramdas Shrinivas Nayak AIR 1982 SC 1249, Shiv Prakash Janak Raj & Co. (P) Ltd., etc. and has held as under. “20. In the case .....” 6.4.3 In the present case, as per the terms of CA, the appellant was under an obligation to construct the project and to utilize the toll receipts deposited in the Escrow account during const…

DCIT, Hisar vs. M/S. the Hisar Distt. Primary Coop, Hisar

ITA 1313/DEL/2017[2013-14]Status: DisposedITAT Delhi19 Apr 2023AY 2013-14

Bench: Sh. N. K. Billaiya & Sh. C.N. Prasadassessment Year: 2013-14 Dy. Cit, M/S. The Hisar Distt. Hisar Vs Primary Coop. Agri. & Rural Development Bank Ltd.,Lajpat Nagar, Hisar-125001 Pan No.Aaeft2419C (Appellant) (Respondent) Cross Objection No.111/Del/2017 ( In Ita No.1313/Del/2017) Assessment Year: 2013-14 M/S. The Hisar Distt. Coop. Dy. Cit, Agrl. & Rural Dev. Bank Vs Hisar Ltd., Lajpat Nagar, Hisar-125001 Pan No.Aaeft2419C (Appellant) (Respondent)

Section 36

…in P&L account or in its total income. On the facts and in the circumstances of the case, learned 2. CIT(A) has erred in not appreciating the fact that the ratio of decision of the Hon'ble Supreme Court in the case of State Bank of Travancore Vs. CIT (1986) 158 ITR 102 (Supreme Court) is applicable to the case of the assessee and facts of the case of Keshav Ji Ravji & Co. Vs. CIT (1990) 183 ITR 1 (Supreme Court) relied upon by the learned CIT(A) are distinguishable. The appellant craves leave to add, or amend the grounds 3. before the appeal is heard and disposed off." 13. And the Coordinate Bench inter alia…

M/S the State Bank of Patiala, Patiala vs. ACIT, Patiala

In the result, the appeals of the assessee are partly allowed for In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 510/CHANDI/2017[2013-14]Status: DisposedITAT Mumbai31 Mar 2023AY 2013-14

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant () Assessment Year: 2013-14 & Assessment Year: 2014-15 & Assessment Year: 2015-16 The State Bank Of India Asst. Cit Circle-Patiala, (Successor To State Bank Of Aayakar Bhavan, Vs. Patiala), Patiala-147001 Dgm & Cfo, Sbi, Local Head Office – Chandigarh, 2Nd Floor, Sector 17A, Chandigarh- 160017. Pan No. Aaccs 0143 D Appellant Respondent Assessee By : Mr. Ketan Ved & Mr. Ninadpatade, Ars Revenue By : Dr. Kishor Dhule, Cit-Dr : Date Of Hearing 09/03/2023 Date Of Pronouncement : 31/03/2023

For Appellant: Mr. Ketan Ved &For Respondent: Dr. Kishor Dhule, CIT-DR
Section 2Section 36(1)Section 36(1)(viia)

…arch as per the terms of the said securities. 31st March as per the terms of the said securities. 113. The learned CIT DR referred to se 113. The learned CIT DR referred to several decisions such veral decisions such as State Bank of Travancore Vs. CIT [1986] 158 ITR 102 as State Bank of Travancore Vs. CIT [1986] 158 ITR 102 as State Bank of Travancore Vs. CIT [1986] 158 ITR 102 (SC), U.P Chalchitra Nigam Ltd. Vs. CIT [2015] 370 ITR (SC), U.P Chalchitra Nigam Ltd. Vs. CIT [2015] 370 ITR (SC), U.P Chalchitra Nigam Ltd. Vs. CIT [2015] 370 ITR 379 379 379 (Allahabad) (Allahabad) (Allahabad) and and and Mahindra Mahi…

DCIT, Circle-19(2), New Delhi vs. Pawan Hans Ltd., Noida

In the result, both the appeals of the Revenue are dismissed

ITA 7417/DEL/2019[2016-17]Status: DisposedITAT Delhi03 Mar 2023AY 2016-17

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

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. K. K. Mishra, Sr. DR
Section 115JSection 139(1)Section 37(1)

…e system of accounting. The Hon'ble Court inter-alia held that mere fact that the assessee followed the mercantile system of accounting would not lead to taxation of income on accrual basis. It distinguished the case of State Bank of Travancore vs. CIT (1986) 158 ITR 102 (SC) as in that case the bank debited the amount of interest to the account of the debtor but instead of crediting the P & L Account as interest income, too the same into the balance sheet in suspense account. This conduct of the bank in the said case clearly showed that it had treated the interest income as having accrued to it. In the case befo…

Addl.CIT, Special Range- 7, New Delhi vs. Pawan Hans Ltd., New Delhi

In the result, both the appeals of the Revenue are dismissed

ITA 6441/DEL/2017[2013-14]Status: DisposedITAT Delhi03 Mar 2023AY 2013-14

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

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Sh. K. K. Mishra, Sr. DR
Section 115JSection 139(1)Section 37(1)

…e system of accounting. The Hon'ble Court inter-alia held that mere fact that the assessee followed the mercantile system of accounting would not lead to taxation of income on accrual basis. It distinguished the case of State Bank of Travancore vs. CIT (1986) 158 ITR 102 (SC) as in that case the bank debited the amount of interest to the account of the debtor but instead of crediting the P & L Account as interest income, too the same into the balance sheet in suspense account. This conduct of the bank in the said case clearly showed that it had treated the interest income as having accrued to it. In the case befo…

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

…of Income Tax [1971] 82 ITR 570 (SC)). The Hon’ble Supreme Court took the view that the probability or improbability of realization has to be considered in a realistic manner. 11. In the case of State Bank of Travancore vs. 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, 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 found out and…

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)

…al 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 Travancore V. CIT [1986] 158 ITR 102 (SC), in which both questions, before the court were decided in favour of Revenue. The court inter alia observed - 8. The material provisions in regard to the computation of income of an assessee under the head Profits and gains of business or profession' are to be found in sections 28(i), 29 and 145(1) of the Act but these have to be read subjec…

Pr Commissioner of Income Tax vs. The Kangra Central Cooperative Bank Ltd

The appeals are dismissed

ITA/82/2018HC Himachal Pradesh07 Dec 2022

Bench: HON'BLE MRS. JUSTICE SABINA,HON'BLE MR. JUSTICE SUSHIL KUKREJA

Section 145Section 36Section 43D

…Hon’ble ITAT, Chandigarh is justified in deleting the addition of Rs.27,78,47,640/ made by the AO on account of interest accrued on non performing assests by ignoring the decision of the Hon’ble supreme Court in the case of State Bank of Travancore (158 ITR 102” (2) Whether on the facts and in the circumstances of the case, the Hon’ble ITAT erred in applying Section 43D to a cooperative society even though the same is specifically excluded under Explanation (ii) to clause (vii a) of Section 36 (1) (3) Whether on the fact and in the circumstances of the case, the Hon’ble ITAT has erred in fol…