Section 23(2) of the Income Tax Act

Income-tax Act, 2025: s.21

Section 23(2) 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(2) is Ujjain General Trading Society (P.) Ltd. v. CIT (67 ITR 315), cited in 8 of the 58 judgments on BharatTax that turn on this section.

Leading authorities on Section 23(2)

Ujjain General Trading Society (P.) Ltd. v. CIT
67 ITR 315 · 1968 · ITAT
8
citing judgments
Rajesh Keshav Pillai v. ITO
44 SOT 617 · 2011 · ITAT
6
citing judgments
DCIT v. Ranjit Vithaldas
23 Taxmann.com 226 · 2012 · Reported
3
citing judgments

Judgments on Section 23(2)

Maharao Bhim Singh Thr.Maharao B.R.Singh vs. C.I.T., Jaipur

C.A. No.-002812-002812 - 2015Supreme Court05 Dec 2016

Bench: RANJAN GOGOI ABHAY MANOHAR SAPRE

Section 10Section 256(1)Section 60A

Sh. Rajiv Mahajan, New Delhi vs. ACIT, New Delhi

In the result, appeals of the assessees are allowed

ITA 5347/DEL/2014[2005-06]Status: DisposedITAT Delhi14 Oct 2016AY 2005-06

Bench: Sh. N. K. Sainiita No. 5347/Del/2014 : Asstt. Year : 2005-06 Sh. Rajiv Mahajan, Vs Asstt. Commissioner Of Income 20, Double Story Market, New Tax, Circle-33(1), Rajinder Nagar, New Delhi New Delhi-110060 (Appellant) (Respondent) Pan No. Aaapm3108P

For Appellant: Sh. R.S. Singhvi & Satyajit Goel, CAsFor Respondent: Sh. A. Sreenivasa Rao, Sr. DR
Section 143(1)Section 143(3)Section 148Section 24

Arava Subba Rao, Chennai vs. ACIT, Chennai

In the result, the appeal of the assessee is partly allowed

ITA 2064/CHNY/2015[2011-2012]Status: DisposedITAT Chennai01 Apr 2016AY 2011-2012

Bench: Shri A.Mohan Alankamony & Shri. G. Pavan Kumar

For Respondent: Shri. A.V.Sreekanth, IRS, JCIT
Section 131Section 142(1)Section 143(1)(a)Section 143(2)Section 143(3)Section 22Section 23(1)Section 23(2)Section 24

Vijaya Mallya, Mumbai vs. ITO 15(2)(4)

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

ITA 6192/MUM/2013[2009-10]Status: DisposedITAT Mumbai15 Jan 2016AY 2009-10

Bench: Shri B.R.Baskaran & Shri Pawan Singhassessment Year: 2009-10 Mrs. Vijaya Mallya, Ito-15(2)(4), 4/C-1504 Whispering Palms Chs Matru Mandir, Tardeo Road, Mumbai-400007 Ltd., Akurli Road, Lokhandwala Vs. Township, Kandivli (East), Mumbai-400101. Pan: Alqpk6037J (Appellant) (Respondent)

For Appellant: Shri Anish ThackerFor Respondent: Shri A.K. Dhondial (DR)
Section 23Section 23(4)Section 234BSection 234CSection 24

Commissioner of Income Tax vs. Ravjibhai Chhanabhai Pathar

The appeals are allowed

TAXAP/1883/2006HC Gujarat04 Dec 2014
Section 18Section 23Section 23(2)Section 260ASection 28Section 34Section 45(5)

Commissioner of Income-Tax, Faridabad vs. Ghanshyam (HUF)

CIVIL APPEAL No. 4401/2009Supreme Court16 Jul 2009

Bench: 2 Judges

Section 260ASection 45(1)Section 45(5)

Estate of Ambalal Sarabhai vs. Commissioner of Income Tax

ITR/299/1984HC Gujarat04 Jul 2000
Section 147Section 23(2)Section 256(1)

Nagarmal Baijnath vs. Commissioner of Income Tax

CIVIL APPEAL No. 156/1979Supreme Court26 Mar 1993

Bench: 2 Judges

Section 21Section 44Section 66(1)

R. K. Malhotra, I.T.O. Group Circle II(L), Ahmedabad vs. Kastur Bhai Lalbhai (H.U.F.)

The appeal is allowed with costs

CIVIL APPEAL No. 1977/1971Supreme Court11 Aug 1977

Bench: 2 Judges

Section 147Section 148Section 23

Tara Devi Aggarwal vs. Commissioner of Income-Tax, West Bengal, Calcutta

CIVIL APPEAL No. 2387/1969Supreme Court27 Nov 1972

Bench: 3 Judges

Section 33B

Mahabir Commercial Co. Ltd vs. C.I.T. West Bengal, Calcutta

The appeal is allowed with costs

CIVIL APPEAL No. 450/1969Supreme Court08 Sept 1972

Bench: 2 Judges

Daffadar Bhagat Singh & Sons vs. The Income-Tax Officer, A-Ward, Ferozepore

CIVIL APPEAL No. 962/1966Supreme Court22 Aug 1968

Bench: 2 Judges

M. M. Ipoh & Ors vs. Commissioner of Income·Tax, Madras

CIVIL APPEAL No. 1060/1965Supreme Court26 Jul 1967

Bench: 3 Judges

Commissioner of Income-Tax, Calcutta vs. Bidhu Bhushan Sarkar (Dead) Through His Legal Representative Mihir Kumar Sarkar

CIVIL APPEAL No. 401/1965Supreme Court03 Oct 1966

Bench: 3 Judges

C. A. Abraham, Uppoottil, Kottayam vs. The Income-Tax Officer, Kottayam and Another

CIVIL APPEAL No. 517/1958Supreme Court29 Nov 1960

Bench: 3 Judges

The Commissioner of Income-Tax, Bombay vs. Ranchhoddas Karsondas, Bombay

CIVIL APPEAL No. 281/1955Supreme Court08 May 1959

Bench: 3 Judges

Rai Bahadur Seth Teomal vs. The Commissioner of Income Tax and the Commissioner of Excess Profits Tax

CIVIL APPEAL No. 384/1957Supreme Court02 Mar 1959

Bench: 3 Judges

Dhakeswari Cotton Mills Ltd vs. Commissioner of Income Tax, West Bengal

In the result we allow this appeal, set aside the order

CIVIL APPEAL No. 217/1953Supreme Court29 Oct 1954

Bench: 5 Judges

Section 22(2)Section 28(3)