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)

Wipro Limited vs. The State of Karnataka

In the result, the revisions are allowed

STRP/70/2014HC Karnataka07 Dec 2020

Bench: ALOK ARADHE,H.T. NARENDRA PRASAD

Section 22(1)Section 23(1)

DCIT, New Delhi vs. M/S. Dlf Ltd., New Delhi

ITA 4436/DEL/2013[2009-10]Status: DisposedITAT Delhi10 Sept 2020AY 2009-10

Bench: Sh. Prashant Maharishi & Sh. K. Narashimha Chary(Through Video Conferencing) Assessment Year: 2009-10 Dlf Limited Addl. Cit Dlf Centre, (9Th Floor) Vs Range-10 Sansad Marg, 404, C. R. Building New Delhi-110001 New Delhi Pan No.Aaacd3494N (Appellant) (Respondent) Dcit Vs. Dlf Ltd. Circle –7 (1) Sansad Marg New Delhi New Delhi Pan No. Aaacd3494N (Appellant) (Respondent)

Section 14ASection 23(1)

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

ITA 4061/DEL/2013[2009-10]Status: DisposedITAT Delhi10 Sept 2020AY 2009-10

Bench: Sh. Prashant Maharishi & Sh. K. Narashimha Chary(Through Video Conferencing) Assessment Year: 2009-10 Dlf Limited Addl. Cit Dlf Centre, (9Th Floor) Vs Range-10 Sansad Marg, 404, C. R. Building New Delhi-110001 New Delhi Pan No.Aaacd3494N (Appellant) (Respondent) Dcit Vs. Dlf Ltd. Circle –7 (1) Sansad Marg New Delhi New Delhi Pan No. Aaacd3494N (Appellant) (Respondent)

Section 14ASection 23(1)

DCIT 2(2)(2), Mumbai vs. Nrb Bearing Ltd, Mumbai

ITA 7008/MUM/2017[2013-14]Status: DisposedITAT Mumbai22 Jul 2020AY 2013-14

Bench: Sri Mahavir Singh, Vp & Sri Rajesh Kumar, Am आयकर अपील िं./ Ita No. 7008/Mum/2017 (निर्ाारण वर्ा / Assessment Years 2013-14) The Dy. Commissioner Of Income M/S Nrb Bearings Ltd. Tax, Circle 2(2)(2), 15, Dhanpur Building, बिाम/ Room No.545, 5Th Floor, Aayakar Sir P.M. Road Fort, Bhavan, M.K. Road, Churchgate, Mumbai-400 001 Vs. Mumbai-400 020 (अपीलार्थी / Appellant) (प्रत्यर्थी/ Respondent) स्र्थायी लेखा िं./Pan No. Aaacn3479P अपीलार्थी की ओर े/ Appellant By : Shri Dharmesh Shah, Ar प्रत्यर्थी की ओर े/ Respondent By : Ms. Kavita Kaushik, Dr ुिवाई की तारीख / Date Of Hearing: 22.07.2020 घोर्णा की तारीख / Date Of Pronouncement: 22.07.2020

For Appellant: Shri Dharmesh Shah, ARFor Respondent: Ms. Kavita Kaushik, DR
Section 143(3)Section 23(1)

M/S. Record Investments and Leasing Pvt. Ltd., Mumbai vs. ITO, Ward-3(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 67/MUM/2019[2013-14]Status: DisposedITAT Mumbai21 Jan 2020AY 2013-14

Bench: Shri R.C.Sharmam/S Record Investments & Vs. I.T.O. Leasing Pvt. Ltd., Ward 3(3)(1), 92, Maker Chambers Vi, 220, Mumbai. Nariman Point, Mumbai- 400021. Pan/Gir No.Aaacr 7607 M (Appellant) .. (Respondent)

Section 143(3)Section 23Section 23(1)Section 23(2)Section 23(4)

The Commissioner of Income-Tax vs. M/S Endeka Ceramics Pvt. Ltd

In the result, the revisions are allowed

ITA/69/2014HC Karnataka09 Jan 2020

Bench: ALOK ARADHE,RAVI V HOSMANI

Section 22(1)Section 23(1)

Sailesh Mahimtura, Mumbai vs. Deputy Commissioner of Income Tax-12(2) (Now Assessed With Assistant Commissioner of Income Tax-17(3), Mumbai

The appeal of the assessee is dismissed

ITA 6340/MUM/2017[2010-11]Status: DisposedITAT Mumbai18 Dec 2019AY 2010-11

Bench: Shri Rajesh Kumar & Shri Ravish Soodshri Sailesh Mahimtura Dcit-12(2) Unique House, 25, S.A. (Now Assessed With Acit-17(3) Brelvi Road, Fort, Vs. Mumbai Mumbai- 400001

For Appellant: NoneFor Respondent: Shri Amit Pratap Singh, D.R
Section 143(1)Section 143(2)Section 143(3)Section 24

ITO, Ward - 10(2), Kolkata vs. Pratap Properties Limited, Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 742/KOL/2018[2012-13]Status: DisposedITAT Kolkata16 Oct 2019AY 2012-13

Bench: Shri A. T. Varkey, Jm & Shri A.L.Saini, Am]

Section 133(6)Section 142(1)Section 68

DCIT, Cir-6, Kolkata vs. M/S Avantha Realty Ltd., Kolkata

In the result, the appeal of Revenue is dismissed

ITA 895/KOL/2014[2009-2010]Status: DisposedITAT Kolkata30 Sept 2019AY 2009-2010

Bench: The Hon’Ble High Court Of Delhi & On Considering The Facts & Circumstances, The Hon’Ble High Court Of Delhi Was Pleased To Hold That The Delay Of 19 Days Is Not Extraordinary & Explanation Offered By The Appellant-Revenue To Be Plausible & On Merits. The Hon’Ble High Court Was Pleased To Set Aside The Order Passed By This Tribunal & Restored The Appeal To The File Of This Tribunal For Disposal In Accordance With Law. Therefore The Delay Of 19 Days Are Condoned.

For Appellant: Shri C. J. Singh, JCIT- Sr. DRFor Respondent: Shri Sanjay Bhattacharya, AR
Section 143(3)Section 23(1)Section 40

ITO (It) 2(3)(1), Mumbai vs. Nikhil S. Goklaney, Mumbai

In the result, the appeal of the revenue is dismissed and Cross Objection of the assessee are allowed for statistical purposes

ITA 2542/MUM/2017[2013-14]Status: DisposedITAT Mumbai06 Sept 2019AY 2013-14

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am

For Appellant: Ms. Jothi Lakshmi Nayak, DRFor Respondent: S/ Shri Hiro Rai
Section 143(3)Section 2(24)Section 23Section 23(1)

Asha Burman, New Delhi vs. ACIT Circle- 46(1), New Delhi

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

ITA 3414/DEL/2019[2015-16]Status: DisposedITAT Delhi14 Aug 2019AY 2015-16

Bench: Shri T.S. Kapoor & Shri Amit Shukla, [Assessment Year: 2015-16] Smt. Asha Burman, Acit, 4Th Floor, Punjabi Bhawan, Circle-46(1), 10, Rouse Avenue, New Delhi New Delhi Pan-Aaepb0966C Appellant Respondent

Section 23(1)

M/S. Ideal Hitech Engineering Equipment (P) Ltd., New Delhi vs. ITO, New Delhi

In the result, appeal of the assessee is allowed

ITA 3316/DEL/2017[2012-13]Status: DisposedITAT Delhi13 Aug 2019AY 2012-13

Bench: Shri H.S. Sidhu & Dr. B.R.R. Kumar

Section 143(2)Section 22Section 23Section 23(1)(a)Section 23(1)(c)Section 24Section 251(2)

Asst CIT 16(2), Mumbai vs. Janak Dilip Dwarkadas, Mumbai

In the result, appeal of the revenue is dismissed

ITA 6575/MUM/2017[2014-15]Status: DisposedITAT Mumbai17 Jul 2019AY 2014-15

Bench: Shri Pawan Singh () & Shri G Manjunatha () Acit-16(2), Mumbai Vs Shri Janak Dilip Dwarkadas 3Rd Floor, Mulla House 51, M.G. Road, Fort, Mumbai-400 001 Pan : Aaepd8303R Appellant Respondednt

Section 143(3)Section 14ASection 154Section 23(1)Section 24

Modi Govind Bhatia, Mumbai vs. DCIT 12(2), Mumbai

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

ITA 2020/MUM/2016[2011-12]Status: DisposedITAT Mumbai21 Jun 2019AY 2011-12

Bench: Shri Saktijit Dey & Shri Manoj Kumar Aggarwal

For Appellant: Shri Bhupendra ShahFor Respondent: Shri Manoj Kumar Singh (DR)
Section 23(1)Section 23(1)(c)

ACIT-3(1)(1), Mumbai vs. Shri Subrata Mukharji, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 6422/MUM/2017[2012-13]Status: DisposedITAT Mumbai23 Apr 2019AY 2012-13

Bench: Shri Mahavir Singh & Shri Rajesh Kumarassessment Year: 2012-13 Acit-3(1)(1) Subrata Mukharji Room No.607, 6Th Floor 2402, Mahindra Heights Vs. Aaaykar Bhawan Tardeo,Mumbai-400 034 Mumbai-400 020 Pan Aajpm2967R (Revenue) (Assessee)

For Appellant: Shri Devdatta MainkarFor Respondent: Shri Chaudhary Arun Kumar Singh
Section 143(3)Section 54Section 54(1)

ITO, Ward-3(1)(2), Ahmedabad vs. Pasl Windtech Pvt.Ltd., Ahmedabad

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

ITA 3460/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad04 Apr 2019AY 2011-12

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri Bandish S. Soparkar, A.RFor Respondent: Shri S. K. Dev, Sr. D.R
Section 143(1)Section 143(2)Section 143(3)

Pasl Windtech Pvt. Ltd., Ahmedabad vs. The Income Tax Officer, Ward-5(2), Ahmedabad

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

ITA 3212/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad04 Apr 2019AY 2011-12

Bench: Shri Pramod Kumar & Ms. Madhumita Roy

For Appellant: Shri Bandish S. Soparkar, A.RFor Respondent: Shri S. K. Dev, Sr. D.R
Section 143(1)Section 143(2)Section 143(3)

Viren Vini Ahuja, Mumbai vs. Asst CIT Cen Cir 8(4), Mumbai

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

ITA 1855/MUM/2017[2012-13]Status: DisposedITAT Mumbai04 Apr 2019AY 2012-13

Bench: Shri Pawan Singh & Shri G. Manjunathavirenvini Ahuja Assistant Commissioner Of Bunglow No.1 Income Tax, Central, Circle- Neelkanth Teerth, 8(4), Mumbai-400021. Road No.6,Chembur, Vs. Mumbai-400 071. Pan: Aacpa4809M Appellant Respondent Appellant By : Shri J.P.Bairagra (Ar) Respondent By : Shri Rajeev Gubgotra (Dr)

For Appellant: Shri J.P.Bairagra (AR)For Respondent: Shri Rajeev Gubgotra (DR)
Section 143(3)Section 23(1)

ITO 6(2)(1), Mumbai vs. Chawla Brothers .P. Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 5108/MUM/2017[2014-15]Status: DisposedITAT Mumbai30 Jan 2019AY 2014-15

Bench: Shri C.N. Prasad, Hon'Ble & Shri G. Manjunatha, Hon'Ble

For Appellant: Shri Mahesh O. RajoraFor Respondent: Shri Abi Rama Kartikeyan
Section 23(1)Section 80I

Sh. Prince Sharma, Chandigarh vs. ACIT, C-5(1), Chandigarh

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

ITA 65/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh26 Nov 2018AY 2013-14
For Appellant: Shri Anil Batra, AdvFor Respondent: Ms/ Geetinder Mann, Sr.DR
Section 143(3)Section 23(1)Section 250Section 271(1)(c)