Section 23(1) of the Income Tax Act

Income-tax Act, 2025: s.21

Section 23(1) falls under section 23 of the Income-tax Act, 1961, which corresponds to section 21 (Determination of annual value) of the Income-tax Act, 2025.

Read section 21 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 23(1) is Central India Electric Supply Co. v. CIT* (232 ITR 2), cited in 16 of the 114 judgments on BharatTax that turn on this section.

Leading authorities on Section 23(1)

Central India Electric Supply Co. v. CIT*
232 ITR 2 · 1998 · Supreme Court
16
citing judgments

Mesne profits decreed by a court are taxable income in the hands of the decree holder in the relevant assessment year they are charged to income-tax.

Kumar Properties and Real Estate (P.) Ltd. v. DCIT
128 Taxmann.com 364 · 2021 · ITAT
14
citing judgments

No disallowance can be made under section 14A if the assessee has not earned any exempt income in the relevant assessment year.

CIT v. Smt. Lila Ghosh
205 ITR 9 · High Court
12
citing judgments

Mesne profits received by an assessee for unauthorized occupation of property constitute a capital receipt and are not chargeable to income tax. This receipt is characterized as damages for dispossession or loss of a right to use the property.

Bipin Vadilal Family Trust v. CIT
208 ITR 1005 · 1994 · High Court
12
citing judgments

Unsold properties can be assessed for deemed rental income under Section 23(1)(a) based on a reasonable letting value, often calculated as a percentage of the property's cost or value.

Pegasus Properties (P.) Ltd. v. DCIT
135 Taxmann.com 294 · 2022 · ITAT
9
citing judgments
CIT v. Wackhardt International Ltd.
314 ITR 11 · 2009 · High Court
9
citing judgments
Sachin R. Tendulkar v. DCIT
96 Taxmann.com 253 · 2018 · Reported
8
citing judgments
CIT v. Mrs. Annamma Alexander
191 ITR 551 · High Court
6
citing judgments
Pvt. Ltd. v. ACIT, Pune
147 Taxmann.com 333 · 2023 · ITAT
5
citing judgments

Judgments on Section 23(1)

Dy. Commissioner of Income Tax, Central Circle-1(2), Mumbai vs. M/S Capacit'E Infraprojects Ltd, Mumbai

In the result, the appeal by the Revenue for the assessment year 2016-

ITA 905/MUM/2023[2015-2016]Status: DisposedITAT Mumbai27 Jun 2023AY 2015-2016

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Viraj MehtaFor Respondent: Shri Manish Sareen a/w
Section 132ASection 139(1)Section 143(3)Section 153ASection 250Section 37(1)

Dy. Commissioner of Income Tax, Central Circle-1(2), Mumbai vs. M/S Capacit'E Infraprojects Ltd, Mumbai

In the result, the appeal by the Revenue for the assessment year 2016-

ITA 904/MUM/2023[2014-2015]Status: DisposedITAT Mumbai27 Jun 2023AY 2014-2015

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

For Appellant: Shri Viraj MehtaFor Respondent: Shri Manish Sareen a/w
Section 132ASection 139(1)Section 143(3)Section 153ASection 250Section 37(1)

Modern Abodes Pvt Ltd, Mumbai vs. ITO Ward 12(3)(4), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 2735/MUM/2022[2014-15]Status: DisposedITAT Mumbai03 Apr 2023AY 2014-15

Bench: Shri Kuldip Singh, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blemodern Abodes Pvt. Ltd., V. Income Tax Officer – 12(3)(4) C/O. Gulabani & Co. Room No. 148, Aayakar Bhavan M.K. Road, Mumbai - 400020 506, 5Th Floor Shree Prasad House 35Th Road, Off. Linking Road Bandra (W), Mumbai - 400050 Pan: Aagcm1595B (Appellant) (Respondent) Assessee Represented By : Ms. Neelam Jadhav Shri Ashish Kumar Deharia Department Represented By :

Section 142(1)Section 143(1)Section 143(2)Section 23(1)Section 32Section 37(1)

Mr. Karuppasamy Pillai Vadivel Murugan, Chennai vs. ITO, Non Corporate Ward 10(5), Chennai

The appeal stand partly allowed for statistical purposes

ITA 771/CHNY/2022[2011-12]Status: DisposedITAT Chennai21 Feb 2023AY 2011-12

Bench: Shri Manoj Kumar Aggarwal, Am

For Appellant: Smt. G. Vardhini Karthick (Advocate)-Ld. ARFor Respondent: Shri Sanat Kumar Raha (Addl. CIT)-Ld. DR
Section 142(1)Section 143(3)Section 147Section 148Section 23(1)Section 56(2)Section 69A

DCIT, Central Circle-1(2), Ahmedabad vs. Smt. Giraben Atulbhai Shah, Ahmedabad

ITSSA 243/AHD/2018[2010-11]Status: DisposedITAT Ahmedabad31 Jan 2023AY 2010-11

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

Sh. Harjeet Singh Arora, Delhi vs. DCIT, New Delhi

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

ITA 2236/DEL/2015[2007-08]Status: DisposedITAT Delhi20 Oct 2022AY 2007-08

Bench: Shri Shamim Yahya & Shri N. K. Choudhry[Assessment Year: 2007-08]

Section 153ASection 2(22)(e)Section 23(1)

Nitin Raj Marwah, Mumbai vs. DCIT Cir 8(20), Mumbai

ITA 19/MUM/2022[2013-14]Status: DisposedITAT Mumbai22 Aug 2022AY 2013-14

Bench: Shri Prashant Maharshi () & Smt. Kavitha Rajagopal () Nitin Raj Marwah Vs Dcit-10(2)(2), Ayakar Bhavan 8Th Floor, Marwah Centre Maharshi Karve Road Krishanlal Marwah Marg Mumbai-400 020 Andheri (East) Mumbai-400 072 Pan : Aabpm2959 Appellant Respondent

Section 143(3)Section 23(1)Section 24Section 250

Nitin Raj Marwah, Mumbai vs. DCIT Cir 8(20, Mumbai

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

ITA 18/MUM/2022[2012-13]Status: DisposedITAT Mumbai29 Jul 2022AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.18/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2012-13) Nitin Raj Marwah बिधम/ Dcit-8(2) 8Th Floor, Marwah Centre, Aayakar Bhavan, Vs. Krishanlal Marwah Marg, Maharishi Karve Road, Andheri (E), Mumbai- Mumbai-400020. 400072. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabpm2959F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri M. Subramanian Revenue By: Shri Chetan M. Kacha (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 25/07/2022 घोषणा की तारीख /Date Of Pronouncement: 29/07/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi Dated 26.10.2021 For Assessment Year 2012-13. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A)/Nfac Confirming The Action Of Ao Determining A Sum Of Uk Pounds 21,180 As The Annual Letting Value (Alv) Of A Residential House Property Owned By The Assessee In London, [United Kingdom (Uk)] & Making Addition Of The Same. 3. The Brief Facts As Noted By The Ao Is That The Assessee Had Filed Return Of Income Declaring Total Income At Rs.64,87,033/-. The Ao Noted That The Assessee Had Six (6) Residential House/Flats. According To The Ao, The Assessee Has Not Offered Any Income In Respect Of One Of These Properties As Deemed To Be Let Out Under The Head ‘Income From House Property’. The Ao Further Noted That The Assessee Is A Resident

For Appellant: Shri M. SubramanianFor Respondent: Shri Chetan M. Kacha (Sr. AR)
Section 23(1)

Homeland Constructions Private Limited, Pune vs. Assistant Commissioner of Income-Tax, Circle - 11, Pune

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

ITA 17/PUN/2019[2015-16]Status: DisposedITAT Pune19 Jul 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.17/Pun/2019 निर्धारण वषा / Assessment Year : 2015-16 M/S. Homeland Construction Pvt. Ltd., 5, 100/4, The Retreat Salisbury Park, Near Poonawala Bunglow, Pune – 411037 Pan: Aabch8510Q .......अऩीऱाथी / Appellant बिधम / V/S. The Asst. Commissioner Of Income Tax, Circle 11, Pune ……प्रत्यथी / Respondent

For Appellant: Shri Vinay ChordiaFor Respondent: Shri Deepak Garg
Section 143(3)Section 23Section 23(1)

Umesh Dhondiram Shinde, Kolhapur vs. Assistant Commissioner of Income-Tax, Circle - 2, Kolhapur

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

ITA 1351/PUN/2019[2013-14]Status: DisposedITAT Pune30 Jun 2022AY 2013-14
For Appellant: NoneFor Respondent: Shri M. G. Jasnani
Section 143(3)Section 2Section 23(1)Section 234ASection 271(1)Section 40

Mahagun India Pvt Ltd, New Delhi vs. DCIT Central Circle-3, New Delhi

ITA 8145/DEL/2019[2012-13]Status: DisposedITAT Delhi27 Jun 2022AY 2012-13

Bench: Shri Saktijit Dey & Shri Anadee Nath Misshraassessment Year: 2012-13 Mahagun India Pvt. Ltd., Vs. Dcit, Central Circle- 3, B-66, Ff, Vivek Vihar, New Delhi. Delhi.

Section 132(1)Section 143(3)Section 153ASection 23Section 23(1)

Sri. Venkateswara Developers, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 7(2)(1), Bengaluru

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 2474/BANG/2019[2014-15]Status: DisposedITAT Bangalore16 Jun 2022AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri S.V. Ravishankar, A.RFor Respondent: Shri Narayana K.R., DR
Section 143(3)Section 24Section 251(2)Section 271(1)(C)Section 271(1)(c)

Sri Venkateswara Developers, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 7(2)(1), Bangalore

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

ITA 1910/BANG/2019[2014-15]Status: DisposedITAT Bangalore16 Jun 2022AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri S.V. Ravishankar, A.RFor Respondent: Shri Narayana K.R., DR
Section 143(3)Section 24Section 251(2)Section 271(1)(C)Section 271(1)(c)

Amar Chand Garg, New Delhi vs. ACIT, Circle- 35(1), New Delhi

Appeal is dismissed, consequently, the appeal is dismissed

ITA 7417/DEL/2017[2014-15]Status: DisposedITAT Delhi24 Feb 2022AY 2014-15

Bench: Shri N. K. Billaiya & Sh. Yogesh Kumar Us

Section 2(1)(e)Section 23Section 23(1)Section 24

Bennett Coleman & Company Limited, Mumbai vs. Asst. CIT 1(1)(1), Mumbai

In the result assessee appeal is allowed and revenue appeal is dismissed

ITA 2433/MUM/2019[2013-14]Status: DisposedITAT Mumbai09 Nov 2021AY 2013-14

Bench: Shri Shamim Yahya & Shri Pavan Kumar Gadalem/S. Bennett Coleman Vs. Acit – 1(1)(1) & Company Ltd., 5Th Floor, Aaykar The Times Of India Bhavan, Churchgate, Bldg, Dn Road, Fort, Mumbai – 400020. Mumbai – 400001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb4373Q Appellant .. Respondent Dcit – 1(1)(1) Vs. M/S. Bennett Coleman 5Th Floor, Aaykar & Company Ltd., Bhavan, Churchgate, The Times Of India Mumbai – 400020. Bldg, Dn Road, Fort, Mumbai – 400001. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb4373Q Appellant/Respondent .. Respondent/Appellant Appellant/Respondent Shri Srinivasan By : Venkataraman.Ar Respondent/Appellant Shri. K.C. Selvamani. Dr By : Date Of Hearing 23.08.2021 Date Of Pronouncement 15.11.2021 आदेश / O R D E R Per Pavan Kumar Gadale Jm:

Section 143(1)Section 143(2)Section 143(3)Section 14A(1)Section 23(1)

M/S Prashanti Affiliates vs. State of Karnataka

In the result, the revision petition is dismissed

STRP/9/2020HC Karnataka17 Sept 2021

Bench: S.SUJATHA,RAVI V HOSMANI

Section 12(3)Section 21(2)Section 23(1)Section 5

Manju Lalit Singhvi, Mumbai vs. ACIT, Circle- 19 (2), Mumbai

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

ITA 1056/MUM/2019[2014-15]Status: DisposedITAT Mumbai17 Mar 2021AY 2014-15

Bench: Shri M. Balaganesh & Shri Pavan Kumar Gadalemanju Lalit Singhvi, Acit, Circle 19(2), बनाम/ 52/5, Purnima Room No. 207, Ii Vs. Building, Walkeshwar, Floor, Matru Mandir, Mumbai - 400006 Tardeo Road, Mumbai - 400007

For Appellant: Shri Subodh Ratna Parkhi, ARFor Respondent: Shri Bharat Andhle, DR
Section 143Section 143(3)Section 23Section 23(1)

Official Liquidator

In the result, the revision petition is dismissed

OLR/9/2020HC Karnataka04 Feb 2021

Bench: S SUNIL DUTT YADAV

Section 12(3)Section 21(2)Section 23(1)Section 5

DCIT, Circle-21(1), New Delhi vs. Religare Support Services Ltd(Formerly Known As Rel Infra Facilities Ltd), Noida

ITA 6740/DEL/2017[2013-14]Status: DisposedITAT Delhi12 Jan 2021AY 2013-14

Bench: Shri N.K. Billaiya & Shri Kuldip Singh

For Appellant: Shri Rohit Jain, AdvocateFor Respondent: Shri M. Barnwal, Senior DR
Section 22Section 23Section 23(1)Section 23(1)(a)Section 24

Wipro Limited vs. The State of Karnataka

In the result, the revisions are allowed

STRP/68/2014HC Karnataka07 Dec 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 22(1)Section 23(1)