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.

How many judgments cite State Bank of Travancore v. CIT?

222 judgments on BharatTax cite State Bank of Travancore v. CIT (158 ITR 102), spanning 1999 to 2026.

Which sections of the Income Tax Act does State Bank of Travancore v. CIT come up under?

It is most often cited in judgments turning on Section 143(3), Section 14A, Section 37(1), Section 115JB, Section 36(1)(vii), Section 147.

State Bank of Travancore v. CIT (158 ITR 102)

M/S. Global Infrastructure & Technologies Ltd., Pune vs. ITO, WD.-3(3), Pune

In the result, the appeal of Revenue in ITA

ITA 722/PUN/2004[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru

Section 143(3)Section 271(1)(c)

…ssor, taken on merits, for A.Y. 1995-96. 4. On the facts and in the circumstances of the case and in law the CIT(A) has erred in relying on the following decision which are factually distinguishable, i) Dhun Kapadia 63 ITR 651(SC) ii) State Bank of Travancore 158 ITR 102(SC) iii) Birla Gawlior Pvt. Ltd. 89 ITR 266 (SC) iv) Shoorji Vallabhadas & Co. 46 ITR 144(SC) All these decisions were distinguishable by the CIT(A) in A.Y. 95-96 and not applicable to the facts of case of the assessee. He has erred in not appreciating the principle laid down by the Supreme Court in the case of Shiv Prakash Janak Raj & Co. report…

DCIT, Cir.-1(1), Pune vs. Global Infrastructure & Technologies Ltd., Mumbai

In the result, the appeal of Revenue in ITA

ITA 624/PUN/2004[1996-97]Status: DisposedITAT Pune28 Feb 2018AY 1996-97

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru

Section 143(3)Section 271(1)(c)

…ssor, taken on merits, for A.Y. 1995-96. 4. On the facts and in the circumstances of the case and in law the CIT(A) has erred in relying on the following decision which are factually distinguishable, i) Dhun Kapadia 63 ITR 651(SC) ii) State Bank of Travancore 158 ITR 102(SC) iii) Birla Gawlior Pvt. Ltd. 89 ITR 266 (SC) iv) Shoorji Vallabhadas & Co. 46 ITR 144(SC) All these decisions were distinguishable by the CIT(A) in A.Y. 95-96 and not applicable to the facts of case of the assessee. He has erred in not appreciating the principle laid down by the Supreme Court in the case of Shiv Prakash Janak Raj & Co. report…

DCIT, Cir.-1(1), Pune vs. Mantri Housing & Constructions Ltd., Pune

In the result, the appeal of Revenue in ITA

ITA 1027/PUN/2004[1998-99]Status: DisposedITAT Pune28 Feb 2018AY 1998-99

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am

For Appellant: NoneFor Respondent: Mrs. Nirupama Kotru

Section 143(3)Section 271(1)(c)

…ssor, taken on merits, for A.Y. 1995-96. 4. On the facts and in the circumstances of the case and in law the CIT(A) has erred in relying on the following decision which are factually distinguishable, i) Dhun Kapadia 63 ITR 651(SC) ii) State Bank of Travancore 158 ITR 102(SC) iii) Birla Gawlior Pvt. Ltd. 89 ITR 266 (SC) iv) Shoorji Vallabhadas & Co. 46 ITR 144(SC) All these decisions were distinguishable by the CIT(A) in A.Y. 95-96 and not applicable to the facts of case of the assessee. He has erred in not appreciating the principle laid down by the Supreme Court in the case of Shiv Prakash Janak Raj & Co. report…

The Pr.Commissioner of vs. M/S the Davanagere Urban

ITA/781/2017HC Karnataka28 Feb 2018

Bench: ABHAY SHREENIWAS OKA (CJ),S SUNIL DUTT YADAV

Section 145Section 260

…NPA should be assessed on cash basis and not on mercantile basis, despite the assessee following mercantile system of accounting. This Court has, with reference to the decisions of the Hon’ble Supreme Court in STATE BANK OF TRAVANCORE v. C.I.T.: [1986] 158 ITR 102 (SC) and UCO BANK v. C.I.T.: [1999] 237 ITR 889 (SC), held as under: “8. Therefore, it is clear, if an assessee adopts the mercantile system of accounting and in his accounts he shows a particular income as accruing, whether that amount is really accrued or not is liable to bring the said income to tax. His accounts should reflect true…

State Bank of India, Mumbai vs. ACIT Cir 2(2)

In the result, appeal of the revenue is dismissed

ITA 4736/MUM/2010[1999-2000]Status: DisposedITAT Mumbai31 Jan 2018AY 1999-2000

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

For Respondent: Shri R.P. Meena (CIT-DR)

Section 14ASection 195Section 253Section 254(1)Section 36(1)(viia)Section 40Section 43D

…wed by the appellant unless a portion of this amount is written off as bad debt. It is a real income and hence has to be taxed as such under the mercantile system followed by the appellant. Reliance in this regard is placed on State Bank of Travancore vs. CIT 158 ITR 102, 155 (SC) which was followed in Western India Oil Distributing Co. Ltd. Vs. CIT 206 ITR 359 (Bom). It was held in this decision that the concept of real income should not be so read as to defeat the provisions of the Act. Extension of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary…

ACIT Cir 2(2), Mumbai vs. State Bank of India, Mumbai

In the result, appeal of the revenue is dismissed

ITA 4598/MUM/2010[1999-00]Status: DisposedITAT Mumbai31 Jan 2018AY 1999-00

Bench: Shri G.S. Pannu & Shri Pawan Singhstate Bank Of India Acit Circle (2)(2), Financial Reporting, Compliance & Mumbai. Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent) Acit Circle (2)(2), State Bank Of India Mumbai. Financial Reporting, Compliance & Taxation Department, 19Th Floor, Vs. Corporate Centre, Madam Cama Road, Mumbai-400021. Pan: Aaacs8577K (Appellant) (Respondent)

For Respondent: Shri R.P. Meena (CIT-DR)

Section 14ASection 195Section 253Section 254(1)Section 36(1)(viia)Section 40Section 43D

…wed by the appellant unless a portion of this amount is written off as bad debt. It is a real income and hence has to be taxed as such under the mercantile system followed by the appellant. Reliance in this regard is placed on State Bank of Travancore vs. CIT 158 ITR 102, 155 (SC) which was followed in Western India Oil Distributing Co. Ltd. Vs. CIT 206 ITR 359 (Bom). It was held in this decision that the concept of real income should not be so read as to defeat the provisions of the Act. Extension of the concept of real income to a field so as to negate accrual after the amount had become receivable is contrary…

The Dy. Commissioner of Income Tax, Jalandhar vs. The Nawanshahr Central Co-Op Bank Ltd, Nawanshahr

ITA 61/ASR/2017[2013-14]Status: DisposedITAT Amritsar03 Jan 2018AY 2013-14

Bench: Sh. T. S. Kapoor & Sh. N. K. Choudhryi.T.A. No. 61/(Asr)/2017 Assessment Year: 2013-14 Pan: Aaaat4125G The Dy. C. I. T. Vs. The Nawanshahr Central Co-Op. Circle-Ii, Jalandhar. Bank Ltd. Nawanshahr, Distt. Doaba. (Appellant) (Respondent)

For Appellant: Sh. S. S. Kanwal (D. R.)For Respondent: Sh. Rakesh Joshi (Adv.)

Section 36

…accordance with accounting practice. In Spicer and Pegler's Practical Auditing the relevant passage occurring at page 186-187 has been reproduced in the minority judgment of this Court in State Bank of Travancore v. Commissioner of Income-tax, Kerala [(1986) 158 ITR 102 at p.i2o]. It is as follows: "Where interest has not been paid, it is sometimes left out of account altogether. This prevents the possibility of irrecoverable interest being credited to revenue, and distributed as profit. On the other hand, this treatment does not record the actual state of the loan account, and in the case of banks and other con…

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)

…own 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 can be considered only during the period ending on 31.03.2013, whereas the assessment year befo…

ACIT, New Delhi vs. M/S Punjab & Sind Bank, New Delhi

In the result ground No. 2 of the appeal is dismissed

ITA 2732/DEL/2016[2006-07]Status: DisposedITAT Delhi21 Nov 2017AY 2006-07

Bench: Shri H.S.Sidhu & Shri Prashant Maharishiacit, Vs. Punjab & Sind Bank, Circle-20(1), Ho Accounts & Audit New Delhi Department, Bank House 21, Rajendra Place, New Delhi Pan:Aaacp1206G (Appellant) (Respondent)

For Appellant: Shri Vivek Gupta, CAFor Respondent: Shri Rajeev Kumar, Sr. DR

Section 143Section 143(3)Section 145ASection 147Section 148

…at the question as regards reopening of the assessment under section 147(a) of the Act would not arise further. The question in the facts of the matter under consideration is thus covered by the judgment of this court in State Bank of Travancore v. CIT [1986] 158 ITR 102. “ [ Extracted from ITR online] The facts of the case are almost similar to the issue before honourable Supreme Court. Therefore as in the present case also the assessee has not failed to disclose fully and truly the material facts we do not find any infirmity in the order of the LD CIT (A) in quashing the reopening made by the LD AO. In the r…

Sedco Forex International Inc. Thr. Its Constituted Attorney Mr. Navin Sarda vs. Commissioner of Income Tax Meerut

C.A. No.-004906-004906 - 2010Supreme Court30 Oct 2017

Bench: HON'BLE MR. JUSTICE A.K. SIKRI

Section 44B

…n the same has to be computed in terms of Sections 4, 5 and 9 read with Section 44BB of the Act. In that situation, only the mobilization fee pertaining to voyage within the territorial waters of India can be subjected to tax. 8 (2007) 7 SCC 422 9 (1986) 158 ITR 102 (SC) 23 (iii) Without prejudice to the aforesaid, it is alternatively submitted that since the appellant only received mobilization fee amounting to Rs.2,76,89,533/- (equivalent to US$ 6,42,300), after deduction of liquidated damages, the AO erred in bringing to tax the gross amount of US$1 million under Section 44BB of the Act. 25) Mr. Laks…