What is the leading case on Section 55(2)(b) of the Income Tax Act?

DCIT v. Mahindra Holiday and Resorts (Ind) Ltd. (39 SOT 438) is the decision most relied on for Section 55(2)(b), cited in 15 judgments. The Special Bench of the ITAT held that membership fees received by the assessee were not entirely taxable in the year of receipt.

Which cases are most cited on Section 55(2)(b)?

DCIT v. Mahindra Holiday and Resorts (Ind) Ltd. (39 SOT 438) — 15 citing judgments.

How many judgments are there on Section 55(2)(b)?

BharatTax indexes 35 ITAT, High Court and Supreme Court judgments that turn on Section 55(2)(b) of the Income Tax Act, 1961.

Section 55(2)(b) of the Income Tax Act

Income-tax Act, 2025: s.90

Section 55(2)(b) falls under section 55 of the Income-tax Act, 1961, which corresponds to section 90 (Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”) of the Income-tax Act, 2025.

Read section 90 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 55(2)(b) is DCIT v. Mahindra Holiday and Resorts (Ind) Ltd. (39 SOT 438), cited in 15 of the 35 judgments on BharatTax that turn on this section.

Leading authorities on Section 55(2)(b)

DCIT v. Mahindra Holiday and Resorts (Ind) Ltd.

39 SOT 438 · 2010 · ITAT

citing judgments

The Special Bench of the ITAT held that membership fees received by the assessee were not entirely taxable in the year of receipt.

Judgments on Section 55(2)(b)

ACIT, Circle(It)-1(2)(1), Delhi vs. Satinder Pal Singh Chaddha, Delhi

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

ITITA 5147/DEL/2025[2019-20]Status: DisposedITAT Delhi03 Jun 2026AY 2019-20

Bench: Shri Vikas Awasthy & Smt. Renu Jauhriit(It)A No.- 5147/Del/2025 [Assessment Year: 2019-20] Acit, Satinder Pal Singh Chaddha, Circle (It)-1(2)(1), C-32, Kailash Apartment, Lala Room No. 410, E-2, Block, Civic Vs Lajpat Rai Road, New Delhi- Centre, Delhi, New Delhi-110002. 110048. Pan-Aahpc3790N Revenue Assessee Assessee By Ms. Ananya Kapoor, Ms. Sakshi Rustagi, Advs Revenue By Shri Vikram Singh Sharma, Sr. Dr Date Of Hearing 25.03.2026 Date Of Pronouncement 03.06.2026 Order Per Renu Jauhri:

Section 143(3)Section 54ESection 55(2)(b)

Padma Plastic, Mumbai vs. Commissioner of Income Tax Circle 22(1), Mumbai

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

ITA 8866/MUM/2025[2017-2018]Status: DisposedITAT Mumbai02 Jun 2026AY 2017-2018

Section 147Section 148Section 194ISection 55(2)(b)

Suresh Anant Patil, Mumbai vs. Income Tax Officer Ward 35(3)(4), Mumbai

In the result, the appeal of the assessee bearing ITA No

ITA 1850/MUM/2026[2014-15]Status: DisposedITAT Mumbai25 May 2026AY 2014-15

Bench: Shri Anikesh Banerjee & Shri Arun Khodpiasuresh Anant Patil Vs Ito Ward 35(3)(4), Mumbai 289, 8/9, Sai Sarshan, Kadam Kautilya Bhavan, Bandra East, Wadi, Hanuman Nagar, Akruli Mumbai-400051 Road, Kandivali (East), Mumbai-400101 Pan:Ainpp2882L Appellant Respondent Assessee By : Shri Jagdish T. Punjabi/Ms. Ritu Punjabi Revenue By : Shri Pasale Naganath Bhimrao-(Sr.Dr) Date Of Hearing : 20/05/2026 Date Of Pronouncement : 25/05/2026 O R D E R Per:Anikesh Banerjee (Jm): The Instant Appeal Of The Assessee Filed Against The Order Of The Ld. Commissioner Of Income Tax(Appeals) Addl/Jcit-(A)-1, Vadodara [For Brevity The “Ld. Cit(A)”], Order Passed Under Section 250 Of The Income Tax Act 1961 (For Brevity ‘The Act’) For Assessment Year 2014-15, Date Of Order 12.01.2026. The Impugned Order Emanated From The Order Of The Ld. Income Tax Officer-35(3)(4)

For Appellant: Shri Jagdish T. Punjabi/Ms. Ritu PunjabiFor Respondent: Shri Pasale Naganath Bhimrao-(Sr.DR)

Section 143(1)Section 143(3)Section 250Section 50D

Income Tax Officer, Mumbai vs. Neelam Shamsher Kashyap, Mumbai

In the result, the appeal of the revenue is dismissed

ITA 2053/MUM/2025[2021-22]Status: DisposedITAT Mumbai27 Oct 2025AY 2021-22

Bench: Shri Amit Shukla, Jm& Ms Padmavathy S, Am

For Appellant: Shri Ajay R. Singh, & Shri Akshay PawarFor Respondent: Shri. Leyaqat Ali Aafaqui, Sr. AR

Section 250Section 54

Jaswin Kaur Sethi, Gurgaon vs. DCIT, International Taxation, Gurgaon

The appeal of the assessee is allowed

ITA 2349/DEL/2023[2020-21]Status: DisposedITAT Delhi30 Jul 2025AY 2020-21

Bench: Shri Anubhav Sharma & Shri Avdhesh Kumar Mishraassessment Year: 2020-21 Jaswin Kaur Sethi, Vs Dcit, 218, Regency Park, International Taxation, Dlf Phase Gurgaon. Gurgaon, Haryana – 122 009. Pan: Enmps7327R

For Appellant: Ms Meenal Goyal CAFor Respondent: Shri Om Prakash, Sr. DR

Section 143(3)Section 50CSection 55(2)(b)

The Asst. CIT., Circle-1(1), Baroda vs. Ambalal Sarabhai Enterprises Limited, Baroda

In the result, the appeal is allowed for statistical purposes

ITA 2033/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad08 Jul 2025AY 2012-13

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, A.RFor Respondent: Shri Alpesh Parmar, CIT DR &

Section 115JSection 14ASection 50

Ambalal Sarabhai Enterprises Limited, Baroda vs. The Dy.CIT., Circle-1(1), Baroda

In the result, the appeal is allowed for statistical purposes

ITA 1807/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad08 Jul 2025AY 2012-13

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, A.RFor Respondent: Shri Alpesh Parmar, CIT DR &

Section 115JSection 14ASection 50

Ambalal Sarabhai Enterprises Ltd., Baroda vs. The Dy. Commissioner of Income Tax-1(1)(1), Baroda

In the result, the appeal is allowed for statistical purposes

ITA 954/AHD/2016[2011-12]Status: FixedITAT Ahmedabad08 Jul 2025AY 2011-12

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Respondent byFor Respondent: Shri Bandish Soparkar, A.R

Section 115JSection 144Section 50

The Dy.Commissioner of Income Tax, Circle-1(1)(1), Vadodara vs. Ambalal Sarabhi Enterprises Limited, Vadodara

In the result, the appeal is allowed for statistical purposes

ITA 1315/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad08 Jul 2025AY 2011-12

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Bandish Soparkar, A.RFor Respondent: Shri Alpesh Parmar, CIT DR &

Section 115JSection 144Section 50

Daraius Homi Bilimoria, Mumbai vs. Commissioner of Income Tax (Appeal)-55, Mumbai

In the result, the various grounds of appeal raised by the

ITA 2593/MUM/2025[2019-20]Status: HeardITAT Mumbai17 Jun 2025AY 2019-20

Bench: Shri Pawan Singh & Shri Prabhash Shankar(Physical Hearing) Daraius Homi Bilimoria Commissioner Of Income Tax C/O Hfk Madan, 308, Apeejay House, Vs (Appeals) -55, Mumbai. 130, Shahid Bhagatsingh Marg, Mumbai – 400001. [Pan No. Aacpb4087E] Appellant / Assessee Respondent / Revenue

Section 112Section 254(1)Section 48Section 55(2)(b)Section 55A

ACIT-2(3)(1), Mumbai vs. Sterling Holiday Resorts Limited, Mumbai

In the result the appeal filed by the assessee stands partly allowed for statistical purposes and appeal filed by the revenue stands dismissed

ITA 940/MUM/2024[2018-19]Status: DisposedITAT Mumbai04 Apr 2025AY 2018-19

Bench: Shri Sandeep Gosain & Smt. Renu Jauhristerling Holiday Resorts Ltd Vs. Dcit – Circle 2(3)(1) 236, 4Th Floor, Purva Room No. 552, 5Th Primus, Okkiyampettai, Old Floor, Aayakar Bhavan, Mahabalipuram Road, Mk Road, New Marine Thoraipakkam, Chennai, Lines, Mumbai – 400 Tamil Nadu – 600 097. 020 Pan/Gir No. Aabct7079G (Applicant) (Respondent) Acit – Circle 2(3)(1) Vs. Sterling Holiday Resorts Room No. 552, 5Th Floor, Ltd Aayakar Bhavan, Mk 236, 4Th Floor, Purva Road, New Marine Lines, Primus, Okkiyampettai, Mumbai – 400 020 Old Mahabalipuram Road, Thoraipakkam, Chennai, Tamil Nadu – 600 097. Pan/Gir No. Aabct7079G (Applicant) (Respondent)

Section 250Section 48Section 55(2)(b)

Sterling Holiday Resorts Limited, Tamil Nadu vs. Deputy Commissioner of Income Tax 2(3)(1), Mumbai

In the result the appeal filed by the assessee stands partly allowed for statistical purposes and appeal filed by the revenue stands dismissed

ITA 844/MUM/2024[2018-19]Status: DisposedITAT Mumbai04 Apr 2025AY 2018-19

Section 250Section 48Section 55(2)(b)

Prithviraj Lekkad Mallikarjun, Bengaluru vs. Income Tax Officer, Ward - 1(2)(1), Bengaluru

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

ITA 1050/BANG/2024[2020-21]Status: DisposedITAT Bangalore19 Jul 2024AY 2020-21

Bench: Shri Laxmi Prasad Sahu & Shri Prakash Chand Yadavassessment Year : 2020-21

For Appellant: Shri G.S. Prashanth, CAFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru

Section 226(3)Section 50CSection 54Section 55(2)(b)Section 55A

ACIT, New Delhi vs. Smt. Saraswati Dalmia, New Delhi

In the result, the appeal is dismissed

ITA 4268/DEL/2010[2006-07]Status: DisposedITAT Delhi31 Jul 2023AY 2006-07

Bench: Shri Saktijit Dey & Shri M. Balaganeshassessment Year: 2006-07 Dy. Commissioner Of Income- Vs. Mr. Gun Nidhi Dalmia, Tax, Circle-31(1), 27, Akbar Road, New Delhi New Delhi Pan :Aacpd8352N (Appellant) (Respondent) With Assessment Year: 2006-07 Acit, Vs. Smt. Saraswati Dalmia, Circle-31(1), 27, Akbar Road, New Delhi New Delhi Pan :Aahpd8884E (Appellant) (Respondent)

Section 48Section 48(1)

ACIT, New Delhi vs. Mr. Gun Nidhi Dalmia, New Delhi

In the result, the appeal is dismissed

ITA 3776/DEL/2009[2006-07]Status: DisposedITAT Delhi31 Jul 2023AY 2006-07

Section 48Section 48(1)

Development Consultants Pvt. Ltd., Kolkata vs. PCIT-2, Kolkata

In the result, appeal of the assessee is allowed

ITA 166/KOL/2021[2016-17]Status: DisposedITAT Kolkata31 Oct 2022AY 2016-17

Bench: Shri Sonjoy Sharma & Shri Girish Agrawalassessment Year: 2016-17 Development Consultants Pr. Commissioner Of Income- Pvt. Ltd., Development Tax-2, Kolkata. House, 24 Park Street, Vs. Kolkata-700016. (Pan: Aaacd8900F) (Appellant) (Respondent) Present For: Appellant By : Shri Anup Biswas, Ca Respondent By : Shr D. K. Sonawal, Cit, Dr Date Of Hearing : 29.09.2022 Date Of Pronouncement : 31.10.2022

For Appellant: Shri Anup Biswas, CAFor Respondent: Shr D. K. Sonawal, CIT, DR

Section 143(3)Section 263

The Assistant Commissioner of Income Tax(International Taxation), Visakhapatnam vs. Kanchumarthivenkata Sita Ramachandra Rao, Rajahmundry

In the result, appeal filed by the Revenue is dismissed

ITA 246/VIZ/2020[2016-17]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2016-17

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

Section 142(1)Section 143(2)Section 143(3)Section 148Section 45Section 55(2)(b)

The Assistant Commissioner of Income Tax(International Taxation), Visakhapatnam vs. Kanchumarthivenkata Sita Ramachandra Rao, Rajahmundry

In the result, appeal filed by the Revenue is dismissed

ITA 245/VIZ/2020[2016-17]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2016-17

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

Section 142(1)Section 143(2)Section 143(3)Section 148Section 45Section 55(2)(b)

Smt. Monica Chattopadhya, Mumbai vs. ACIT Circle-28(2), Mumbai

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

ITA 2369/MUM/2021[2015-16]Status: DisposedITAT Mumbai08 Aug 2022AY 2015-16

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blesmt. Monica Chattopadhya V. Acit – Circle – 28(2) 321, Reena Complex Tower No. 6 R.N. Road, Vidyavihar (W) Vashi Railway Commercial Complex Navi Mumbai-400703 Mumbai – 400086 Pan: Ajipc1975D (Appellant) (Respondent) Assessee By : Malav P. Sheth Department By : Mahita Nair

For Appellant: Malav P. ShethFor Respondent: Mahita Nair

Section 143(3)Section 154Section 54

DCIT 1(1), Mumbai vs. Acc Ltd, Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

ITA 1185/MUM/2009[2003-2004]Status: DisposedITAT Mumbai02 Mar 2022AY 2003-2004

Bench: Shri S. Rifaur Rahman, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.1185/Mum/2009 (निर्धारण वर्ा / Assessment Year: 2003-04) Dcit-1(1) बिधम/ M/S. Acc Ltd. Room No.579, Aayakar Cement House, 121, M. K. Vs. Bhavan, Mumbai-400020. Road, Mumbai-400020. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaact1507C (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Ms.Shailja Rai (Dr) Assessee By: Shri Yogesh Thar सुनवाई की तारीख / Date Of Hearing: 10/01/2022 घोषणा की तारीख /Date Of Pronouncement: 02/03/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 28.11.2008 Passed By The Commissioner Of Income Tax (Appeals) -I Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2003- 04. 2. The Revenue Has Raised The Following Grounds: - " L. “Whether On The Facts & Circumstances Of The Case & In Law, The Cit (A) Is Right In Directing To Delete The Addition Made By The Assessing Officer On Account Of Unutilized Modvat Credit & Further In Directing To Allow The Relief Of Rs. 12,09,86,528/- Instead Of Rs. 3,21,85,825/-.” A.Y.2003-04 2. “Whether On The Facts & Circumstances Of The Case & In Law, The Cit (A) Is Right In Deleting The Addition In Respect Of Corporation Tax Paid At Saudi Arabia Of Rs. 2,05,75,346/-.”

For Appellant: Shri Yogesh TharFor Respondent: Ms.Shailja Rai (DR)

Section 115JSection 154Section 251Section 80H