Which cases are most cited on Section 198?

CIT v. Calcutta Discount Co. Ltd. (39 ITR 706) — 103 citing judgments; COMMISSIONER OF INCOME TAX v. VASISTH CHAY VYAAR LIMITED (90 Taxmann.com 365) — 15 citing judgments; Viswapriya Financial Services and Securities Ltd. v. CIT (258 ITR 496) — 9 citing judgments; Hyderabad Pharma Infrastructure & Technologies Ltd. v. ADIT(Intl. Taxn.) (45 Taxmann.com 339) — 8 citing judgments; 131 ITD 205 (Chennai Trib.) 5. Pardeep Kumar Dhir v. ACIT (98 ITD 147) — 8 citing judgments.

How many judgments are there on Section 198?

BharatTax indexes 91 ITAT, High Court and Supreme Court judgments that turn on Section 198 of the Income Tax Act, 1961.

Section 198 of the Income Tax Act

Q: What is the leading case on Section 198 of the Income Tax Act?

CIT v. Calcutta Discount Co. Ltd. (39 ITR 706) is the decision most relied on for Section 198, cited in 103 judgments. The law does not oblige a trader to make maximum profit out of his trading transactions. Profits charged to tax must be in accordance with law and not amount to taxing notional income.

Income-tax Act, 2025: s.396

Section 198 of the Income-tax Act, 1961 corresponds to section 396 (Tax deducted is income received) of the Income-tax Act, 2025.

Read section 396 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 198 is CIT v. Calcutta Discount Co. Ltd. (39 ITR 706), cited in 103 of the 91 judgments on BharatTax that turn on this section.

Leading authorities on Section 198

CIT v. Calcutta Discount Co. Ltd.

39 ITR 706 · 1960 · High Court

103

citing judgments

The law does not oblige a trader to make maximum profit out of his trading transactions. Profits charged to tax must be in accordance with law and not amount to taxing notional income.

COMMISSIONER OF INCOME TAX v. VASISTH CHAY VYAAR LIMITED

90 Taxmann.com 365 · 2018 · Supreme Court

citing judgments

Interest income on Non-Performing Assets (NPA) need not be recognized on an accrual basis and the provisions of Section 145 of the Income Tax Act do not play a role in such income recognition. Furthermore, if interest does not result in any income, there can be no levy of tax.

Viswapriya Financial Services and Securities Ltd. v. CIT

258 ITR 496 · 2002 · High Court

citing judgments

Hyderabad Pharma Infrastructure & Technologies Ltd. v. ADIT(Intl. Taxn.)

45 Taxmann.com 339 · 2014 · Reported

citing judgments

131 ITD 205 (Chennai Trib.) 5. Pardeep Kumar Dhir v. ACIT

98 ITD 147 · 2006 · ITAT

citing judgments

Commissioner of Income Tax-II v. SAR Infracon P Ltd.

318 ITR 317 · 1996 · Reported

citing judgments

TC Leasing & Finance Ltd. 39 TW 211 (Raj. HC) Brahmaputra Capital & Financial Services Ltd. v. ITO

119 ITD 266 · 2009 · ITAT

citing judgments

Principal Commissioner of Income Tax v. M/s. West Bengal Housing Infrastructure

413 ITR 82 · High Court

citing judgments

Delhi Development Authority v. ITO

53 ITD 19 · 1995 · ITAT

citing judgments

413 ITR 82 (Calcutta) Pr CIT v. West Bengal Housing Infrastructure Development Corpn. Ltd SLP Dismissed

263 Taxmann 237 · Supreme Court

citing judgments

Judgments on Section 198

Commissioner of Income Tax Exemption Delhi vs. Iilm Foundation

The Appeal is allowed

ITA/182/2023HC Delhi21 Apr 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

Section 13

Deepshikha Trading Company Pvt. Ltd., Kolkata vs. I.T.O., Ward - 6(2), Kolkata

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

ITA 1957/KOL/2024[2018-2019]Status: DisposedITAT Kolkata14 Jan 2025AY 2018-2019

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 143Section 143(1)Section 143(2)Section 143(3)Section 250

DCIT, Central Circle - 7(1), Mumbai vs. Rare Enterprises, Mumbai

In the result, appeal of the Revenue is partly allowed

ITA 1442/MUM/2024[2018-19]Status: HeardITAT Mumbai27 Sept 2024AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Girish Agrawal

Section 143(3)

Deepak Ramlal Wadhawan, Mumbai vs. Assistant Commissioner of Income Tax-27(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 1251/MUM/2024[2014-15]Status: DisposedITAT Mumbai27 Sept 2024AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri Girish Agrawalassessment Year: 2014-15

For Appellant: NoneFor Respondent: Smt. Mahita Nair, Sr. DR

Section 143(3)Section 57

Mahadevan Hariharan, New Delhi vs. ACIT, Circle -61(1), New Delhi

In the result, the penalty appeal; ITA No

ITA 1099/DEL/2023[2011-12]Status: DisposedITAT Delhi03 Sept 2024AY 2011-12

Bench: Shri Kul Bharat & Shri Avdhesh Kumar Mishra

Section 143(3)Section 147Section 148Section 198Section 271(1)(c)

Mahadevan Hariharan, New Delhi vs. ACIT, Circle-61(1), New Delhi

In the result, the penalty appeal; ITA No

ITA 2636/DEL/2018[2011-12]Status: DisposedITAT Delhi03 Sept 2024AY 2011-12

Bench: Shri Kul Bharat & Shri Avdhesh Kumar Mishra

Section 143(3)Section 147Section 148Section 198Section 271(1)(c)

National Commodity and Derivatives Exchange Limited, Mumbai vs. The Assistant Commissioner of Income Tax, Mumbai

In the result, the appeals of the assessee are dismissed

ITA 344/MUM/2024[2017-18]Status: DisposedITAT Mumbai28 May 2024AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Assessment Year: 2017-18 National Commodity & The Asst. Cit-15(2)(1), Derivatives Exchange Ltd., Aayakar Bhavan, Maharshi Vs. First Floor, Ackruti Corporate Karve Road, Churchgate, Park, Lbs Marg, Near Ge Mumbai-400020. Garden, Kanjurmarg (W), Mumbai-400078. Pan No. Aabcn 7696 K Appellant Respondent Assessment Year: 2018-19 National Commodity & The Additional Derivatives Exchange Ltd., /Joint/Deputy/Asst. Cit15(2)(1), First Floor, Ackruti Vs. Aayakar Bhavan, Maharshi Karve Corporate Park, Lbs Marg, Road, Churchgate, Near Ge Garden, Mumbai-400020. Kanurmarg (W), Mumbai-400078. Pan No. Aabcn 7696 K Appellant Respondent

For Appellant: Mr. Abdul Kadir JawadwalaFor Respondent: Mr. Ashok Kumar Ambastha, Sr

National Commodity and Derivatives Exchange Limited, Mumbai vs. The Additional Joint Deputy Assistant Commissioner of Income Tax, Mumbai

In the result, the appeals of the assessee are dismissed

ITA 342/MUM/2024[2018-19]Status: DisposedITAT Mumbai28 May 2024AY 2018-19

For Appellant: Mr. Abdul Kadir JawadwalaFor Respondent: Mr. Ashok Kumar Ambastha, Sr

Zee Marketing (Guj.) Private Limited, Ahmedabad vs. The Dy. Commissioner of Income Tax, Central Circle-1(1), Ahmedabad

In the result, the appeal preferred by the assessee is partly allowed

ITSSA 19/AHD/2023[2016-17]Status: DisposedITAT Ahmedabad08 Mar 2024AY 2016-17

Bench: Smt.Annapurna Gupta & Ms. Madhumita Royi.T(Ss).A. No. 19/Ahd/2023 ("नधा"रण वष" / Assessment Year : 2016-17) Zee Marketing (Guj.) The Dy. Commissioner Of बनाम/ Private Limited Income Tax Vs. 304, Aakansha Building, Central Circle 1(1), Opp. Vadilal House, Ahmedabad Navrangpura, Ahmedabad - 380009 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacz0627K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Shri M. S. Chhajed, Ar अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Shri Akhilendra Pratap Yadaw, Cit. D.R. सुनवाई क" तार"ख / Date Of 29/02/2024 Hearing घोषणा क" तार"ख /Date Of 08/03/2024 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: The Instant Appeal Filed At The Behest Of The Assessee Is Directed Against The Order Dated 23.12.2022 Passed By The Ld. Commissioner Of Income Tax (Appeals)-11, Ahmedabad (In Short ‘Cit(A)’) Arising Out Of The Order Dated 30.12.2018 Passed By The Acit, Central Circle-1(1), Ahmedabad Under Section 143(3) R.W.S. 153A Of The Income Tax Act, 1961, (Hereinafter Referred To As ‘The Act’) For Assessment Year 2016-17. It(Ss)A No. 19/Ahd/2023 (Zee Marketing (Guj.) Pvt. Ltd. Vs. Dcit) A.Y.– 2016-17 - 2 - 2. The Assessee Has Come Up In Appeal With The Following Grounds:

For Respondent: Shri Akhilendra Pratap Yadaw, CIT

Section 143(3)Section 309

Turner Morrison Ltd., Kolkata vs. DCIT, Cir, Kol, Kolkata

In the result, appeal of the assessee is allowed for statistical purposes

ITA 530/KOL/2023[2020-21]Status: DisposedITAT Kolkata07 Feb 2024AY 2020-21

Bench: Shri Sanjay Garg & Shri Girish Agrawalassessment Year: 2020-21

For Appellant: Shri Miraj D. Shah, ARFor Respondent: Shri S. Datta, CIT, DR

Section 143(1)

Dy. Commissioner of Income Tax, Central Cir. -4, Surat vs. Shri Hiteshkumar Laljibhai Patel, Surat

In the result, the ground of appeal raised by revenue is dismissed

ITA 295/SRT/2023[2018-19]Status: DisposedITAT Surat04 Sept 2023AY 2018-19

Bench: Shri Pawan Singh & Dr Arjun Lal Sainiआ.अ.सं./Ita No.295/Srt/2023 (Ay 2018-19) (Hearing In Virtual Court) Deputy Commissioner Of Income- Shri Hiteshkumar Laljibhai Tax, Central Circle-4, Surat, Room Patel, 52, Narayanmuni Nagar Vs No.508, 5Th Floor, Aayakar Society, Nani Ved Road, Surat- Bhawan, Majura Gate, Surat- 395004 Pan Aanpp 3560 B 395001 अपीलाथ"/Appellant ""थ" /Respondent

Section 143(3)Section 194ASection 198Section 254(1)