CIT v. Mother India Refrigeration Industries (P.) Ltd.

155 ITR 711Supreme Court of India1985#2473 most cited

What is CIT v. Mother India Refrigeration Industries (P.) Ltd. authority for?

Legal fictions and deeming provisions are created for definite purposes and must be limited strictly to that purpose, not extended beyond their legitimate field or the explicit mandate of the section. This principle requires strict interpretation of such provisions.

47

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2000 to 2025.

Also referred to as

CIT v. Mother India Refrigeration Industries · 155 ITR 711 · Supreme Court · legal fiction · deeming provision · strict interpretation · Section 50C · leasehold rights · scope of section · capital gains · full value of consideration

Sections most often in play

Section 143(3)Section 50CSection 132Section 143(1)Section 143(2)Section 115BBESection 131Section 132A

Issues it is cited on

section 32(2)section 50c(1)interest on refundsection 115jasection 80hsection 35dsection 145acompulsory acquisitionsection 80hhcfull value of considerationsection 80hhinterest on securities

Judgments citing CIT v. Mother India Refrigeration Industries (P.) Ltd.

NUTRELA MARKETING P. LTD,MUMBAI vs. ITO 7(1)(1), MUMBAI

In the result the appeal filed by the assessee dismissed

ITA 3910/MUM/2010[2006-07]Status: DisposedITAT Mumbai30 Sept 2025AY 2006-07

Bench: Smt. Beena Pillai () & Shri Omkareshwar Chidara ()

Section 143(1)Section 143(2)Section 50Section 50C

…ered the scope of a deeming provision and came to hold that it cannot be extended beyond the object for which it is enacted. Similar view has been reiterated by Hon'ble Supreme Court in CIT v. Mother India Refrigeration Industries (P.) Ltd. reported in (1985) 155 ITR 711 by laying down that, "legal fictions are created only for some definite purple and these must be limited to that purpose and should not be extended beyond their legitimate field". 6.4. Before us, the case sought to be made out by the assessee is that section 50C, being a deeming provision, has to be strictly interpreted, and, that, section 50C(1…

TECKMEN SYSTEMS ,MUMBAI vs. ITO WARD 27(3)(1), MUMBAI

In the result, the appeal filed by the assessee is allowed as per the above terms

ITA 28/MUM/2025[2019-20]Status: DisposedITAT Mumbai30 Jun 2025AY 2019-20

Bench: MS. KAVITHA RAJAGOPAL (Judicial Member), SMT. RENU JAUHRI (Accountant Member)

For Appellant: Shri G. P. Mehta, CAFor Respondent: Shri Ajit Pal Singh, SR. DR
Section 143Section 143(1)Section 143(1)(a)Section 250Section 50CSection 55A

…uranik vs. Income-tax Officer, 12(1)(1) [2011] 11 taxmann.com 92 (Mumbai). d. Ritz Suppliers (P.) Ltd. vs. Income-tax Officer, Ward - 12(3), Kolkata [2020] 113 taxmann.com 349 (Kolkata - Trib.) e. CIT vs. Mother India Refrigeration Industries (P.) Ltd. (1985) 155 ITR 711 (SC) 8. The learned Departmental Representative ('ld. DR' for short) for the revenue on the other hand controverted the said fact and relied on the order of lower authorities. 9. In the above factual matrix of the case, the moot issue that requires adjudication is whether Section 50C is applicable in case of transfer of leasehold rights of a prop…

TAJSHREE AUTOWHEELS PRIVATE LIMITED,NAGPUR vs. ACIT CIRCLE-4, NAGPUR

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

ITA 400/NAG/2024[2014-15]Status: DisposedITAT Nagpur04 Mar 2025AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Madhav VichoreFor Respondent: Shri Abhay Y. Marathe
Section 56(2)Section 56(2)(viib)

…tory fiction could be carried to its logical conclusion but the fiction cannot be extended beyond the language of the section by which it is created or by importing another fiction. Same is the view of Apex court in Mother India Refrigeration Industries (SC) (155 ITR 711) (para 10 & 11). 10/ On the facts and circumstances in the law, the Learned CIT(A) erred in not consider that the said scrutiny assessment was limited scrutiny assessment and hence issue of addition to income is beyond scope of such limited assessment proceedings in light of binding circulars of CBDT and judicial pronouncements.” 3 Tajshree Auto…

ACIT, MUMBAI vs. ASHOK NARENDRA MEHTA, MUMBAI

In the result, the appeal is allowed for statistical purposes

ITA 3373/MUM/2024[2018-19]Status: DisposedITAT Mumbai28 Aug 2024AY 2018-19

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjeeassessment Year 2018-19 Acit, Circle – 19(1) Ashok Narendra Mehta, 5Th Floor, Piramal Chambers, 132, 13Th Floor, Lalbaug, Vs. Siddhesh Darshan, Mumbai. 10Th Khetwadi Main Road, Khetwadi, Mumbai Pan : Aivpm9318A (Appellant) (Respondent) For Assessee : Shri Vimal Punmiya, C.A. For Revenue : Shri Manoj Kumar Sinha, Sr.Dr Date Of Hearing : 13-08-2024 Date Of Pronouncement : 28-08-2024 Order Per B.R. Baskaran, A.M :

For Appellant: Shri Vimal Punmiya, C.AFor Respondent: Shri Manoj Kumar Sinha, Sr.DR
Section 50CSection 56(2)(vii)Section 56(2)(x)

…s considered the scope of a deeming provision and came to hold that it cannot be extended beyond the object for which it is enacted. Similar view has been reiterated by the Hon'ble Supreme Court in CIT v. Mother India Refrigeration Industries (P.) Ltd. [1985] 155 ITR 711/ 23 Taxman 8 by laying down that "legal fictions are created only for some definite purpose and these must be limited to that purpose and should not be extended beyond their legitimate field". In CIT v. ACE Builders (P.) Ltd. [2006] 281 ITR 210 /[2005] 144 Taxman 855 (Bom), the Hon'ble jurisdictional High Court considered the facts of a case in w…

SRI. HARIS KALANDAN MOHAMMED ,MANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1,, MANGALORE

In the result, appeal of the assessee is allowed

ITA 878/BANG/2024[2018-19]Status: DisposedITAT Bangalore09 Aug 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Prakash Chand Yadavassessment Year: 2018-19

For Appellant: Sri V. Srinivasan, A.RFor Respondent: Ms. Neha Sahay, D.R
Section 132Section 143(2)Section 143(3)Section 2Section 234

…)(e) of the Act is the deeming provision. Against this deeming provision, one more deeming fiction cannot be allowed. 4.2 For this purpose, he relied on the judgement of Hon’ble Supreme Court in the case of ; (1) CIT Vs. Mother India Refrigeration Industries (155 ITR 711) (2) CIT Vs. Amar Chand Sharaf and (3) Bengal Immunity Community Ltd. Vs. State of Bihar wherein held that section 2(22)(e) of the Act is a charging section and should be strictly interpreted. Ingredients of legal fiction created by section 2(22)(e) of the Act has not been made in the assessee’s case. The deeming fiction created for a specific pu…

SHIVDEEEP TYAGI,GHAZIABAD vs. ITO,WARD-2(3), GHAZIABAD

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

ITA 484/DEL/2024[2011-12]Status: DisposedITAT Delhi18 Jun 2024AY 2011-12

Bench: Shri Kul Bharat & Shri Avdhesh Kumar Mishra

Section 143(1)Section 147Section 50C

…the case of Amarchand N. Shroff 48 ITR 59 has held that a deeming provision cannot be extended beyond the purpose for which it is enacted. Similar view was reiterated by the Hon'ble Supreme Court in the case of Mother India Refrigeration Industries (P.) Ltd. 155 ITR 711 by laying down that "legal fictions are created only for some definite purpose and these must be limited to that purpose and should not be extended beyond their legitimate field". In view of the above decisions of the Hon'ble Supreme Court, it is clear that a deeming provision can be applied 5 only in the scope of the law and not beyond the expli…

ANIL DHAKAD,INDORE vs. AASST. COMMISSIONER OF INCOME TAX, CENTRAL-I, INDORE, INDORE

In the result, all four appeals of the assessee are allowed

ITA 454/IND/2023[2021-22]Status: DisposedITAT Indore29 May 2024AY 2021-22

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 115BSection 132Section 132(4)Section 69A

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.451 to 454/Ind/2023 (Assessment Years: 201-19 to 2021-22, ) Shri Anil Dhakad DCIT 227, Saket Nagar Central-I Vs. Indore Indore (Appellant / Assessee) (Respondent/ Revenue) PAN: ABHPD1501B Assessee by Shri P.D. Nagar, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 23.04.2024 Date of Pronouncement 29.04.2024 O R D E R Per Bench : These four appeals by assessee are directed against the composite order of the Commissi…

ANIL DHAKAD,INDORE vs. ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL-I, INDORE, INDORE

In the result, all four appeals of the assessee are allowed

ITA 453/IND/2023[2020-21]Status: DisposedITAT Indore29 May 2024AY 2020-21

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 115BSection 132Section 132(4)Section 69A

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.451 to 454/Ind/2023 (Assessment Years: 201-19 to 2021-22, ) Shri Anil Dhakad DCIT 227, Saket Nagar Central-I Vs. Indore Indore (Appellant / Assessee) (Respondent/ Revenue) PAN: ABHPD1501B Assessee by Shri P.D. Nagar, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 23.04.2024 Date of Pronouncement 29.04.2024 O R D E R Per Bench : These four appeals by assessee are directed against the composite order of the Commissi…

ANIL DHAKAD,INDORE vs. ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL-I, LOCATION

In the result, all four appeals of the assessee are allowed

ITA 452/IND/2023[2019-20]Status: DisposedITAT Indore29 May 2024AY 2019-20

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 115BSection 132Section 132(4)Section 69A

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.451 to 454/Ind/2023 (Assessment Years: 201-19 to 2021-22, ) Shri Anil Dhakad DCIT 227, Saket Nagar Central-I Vs. Indore Indore (Appellant / Assessee) (Respondent/ Revenue) PAN: ABHPD1501B Assessee by Shri P.D. Nagar, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 23.04.2024 Date of Pronouncement 29.04.2024 O R D E R Per Bench : These four appeals by assessee are directed against the composite order of the Commissi…

ANIL DHAKAD,INDORE vs. ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL-I, INDORE, INDORE

In the result, all four appeals of the assessee are allowed

ITA 451/IND/2023[2018-19]Status: DisposedITAT Indore29 May 2024AY 2018-19

Bench: Shri Vijay Pal Rao & Shri B.M. Biyani

Section 115BSection 132Section 132(4)Section 69A

…आयकर अपील"य अ"धकरण, इंदौर "यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.451 to 454/Ind/2023 (Assessment Years: 201-19 to 2021-22, ) Shri Anil Dhakad DCIT 227, Saket Nagar Central-I Vs. Indore Indore (Appellant / Assessee) (Respondent/ Revenue) PAN: ABHPD1501B Assessee by Shri P.D. Nagar, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 23.04.2024 Date of Pronouncement 29.04.2024 O R D E R Per Bench : These four appeals by assessee are directed against the composite order of the Commissi…

DCIT, CC-1(3), KOLKATA, KOLKATA vs. M/S. A R SULPHONATES PVT. LTD., KOLKATA

In the result, appeal of the revenue is dismissed

ITA 570/KOL/2022[2017-2018]Status: DisposedITAT Kolkata22 Mar 2024AY 2017-2018

Bench: Shri Sonjoy Sarma & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Rajeeva Kumar, Advocate & ShriFor Respondent: Shri B. K. Singh, JCIT, Sr. DR
Section 143(3)Section 50C

…only to capital asset, being land or building or both. To buttress his contention on this proposition, he placed reliance on judicial precedence of Hon’ble Supreme Court in the case of Amarchand N. Shroff 48 ITR 59, Mother India Refrigeration India Pvt. Ltd. 155 ITR 711 wherein, inter alia, it was held that legal fictions are only for a definite purpose. They are limited to the purpose for which they are created and should not be extended beyond their legitimate field. 7.5. On the second leg of his contention, ld. Counsel referred to the first and second proviso to section 50C to submit that assessee had entere…

ACIT, CIRCLE CC 15, NEW DELHI vs. ALKA MENDIRATTA , DELHI

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessees are also dismissed

ITA 1864/DEL/2021[2016-17]Status: DisposedITAT Delhi08 Mar 2024AY 2016-17

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Amit Goel, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 153ASection 69

…e to show that there was in fact such a transfer of money. Both the Commissioner as well as the Tribunal have come to the conclusion that there was no such material on record.” (xxiii) In the case of CIT vs. Mother India Refrigeration Industries (P.) Ltd -SC-155 ITR 711, the Hon'ble Supreme Court observed that- "10. It is true that proviso (b)to section 10(2)(vi) (Corresponding to section 32(2) of Income Tax Act 1961) creates a legal fiction and under that fiction unabsorbed depreciation either with or without current year's depreciation is deemed to be the current year's depreciation but it is well settled, as…

ACIT, CC-15, NEW DELHI vs. YASH PAL MENDIRATTA, DELHI

In the result, the appeals of the Revenue are dismissed and the Cross Objections of the assessees are also dismissed

ITA 1863/DEL/2021[2016-17]Status: DisposedITAT Delhi08 Mar 2024AY 2016-17

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Amit Goel, CA &For Respondent: Ms. Sapna Bhatia, CIT-DR
Section 153ASection 69

…e to show that there was in fact such a transfer of money. Both the Commissioner as well as the Tribunal have come to the conclusion that there was no such material on record.” (xxiii) In the case of CIT vs. Mother India Refrigeration Industries (P.) Ltd -SC-155 ITR 711, the Hon'ble Supreme Court observed that- "10. It is true that proviso (b)to section 10(2)(vi) (Corresponding to section 32(2) of Income Tax Act 1961) creates a legal fiction and under that fiction unabsorbed depreciation either with or without current year's depreciation is deemed to be the current year's depreciation but it is well settled, as…

DCIT CIR - 3(1), MUMBAI vs. M/S. BAJAJ AUTO LTD., MUMBAI

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 573/MUM/2007[2000-2001]Status: DisposedITAT Mumbai28 Nov 2023AY 2000-2001

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…eciation was of the nature of expense therefore same required to be considered for arriving at the correct income. Therefore, after placing reliance on the ratio laid down by the Hon’ble Supreme Court in Mother India Refrigeration Industries Pvt. Ltd. Vs CIT [155 ITR 711] the eligible profit was worked out after considering the depreciation allowable as per Income Tax Act. 21. After hearing both the sides and perusal of all the material on record, we find that identical issue on similar fact in the cases of the assessee itself has been decided against the assessee by the co-ordinate benches of ITAT the A.Y. 1993-…

M/S. BAJAJ AUTO LTD.,MUMBAI vs. THE DY CIT CIR 3(1), MUMBAI

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 3055/MUM/2005[2000-2001]Status: DisposedITAT Mumbai28 Nov 2023AY 2000-2001

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…eciation was of the nature of expense therefore same required to be considered for arriving at the correct income. Therefore, after placing reliance on the ratio laid down by the Hon’ble Supreme Court in Mother India Refrigeration Industries Pvt. Ltd. Vs CIT [155 ITR 711] the eligible profit was worked out after considering the depreciation allowable as per Income Tax Act. 21. After hearing both the sides and perusal of all the material on record, we find that identical issue on similar fact in the cases of the assessee itself has been decided against the assessee by the co-ordinate benches of ITAT the A.Y. 1993-…

THE DCIT 3(1), MUMBAI vs. M/S. BAJAJAJ AUTO LTD., MUMBAI

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 2655/MUM/2005[2000-2001]Status: DisposedITAT Mumbai28 Nov 2023AY 2000-2001

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…eciation was of the nature of expense therefore same required to be considered for arriving at the correct income. Therefore, after placing reliance on the ratio laid down by the Hon’ble Supreme Court in Mother India Refrigeration Industries Pvt. Ltd. Vs CIT [155 ITR 711] the eligible profit was worked out after considering the depreciation allowable as per Income Tax Act. 21. After hearing both the sides and perusal of all the material on record, we find that identical issue on similar fact in the cases of the assessee itself has been decided against the assessee by the co-ordinate benches of ITAT the A.Y. 1993-…

M/S. BAJAJ AUTO LTD.,MUMBAI vs. THE DY CIT RG 3(1), MUMBAI

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 2125/MUM/2005[1999-2000]Status: DisposedITAT Mumbai28 Nov 2023AY 1999-2000

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…eciation was of the nature of expense therefore same required to be considered for arriving at the correct income. Therefore, after placing reliance on the ratio laid down by the Hon’ble Supreme Court in Mother India Refrigeration Industries Pvt. Ltd. Vs CIT [155 ITR 711] the eligible profit was worked out after considering the depreciation allowable as per Income Tax Act. 21. After hearing both the sides and perusal of all the material on record, we find that identical issue on similar fact in the cases of the assessee itself has been decided against the assessee by the co-ordinate benches of ITAT the A.Y. 1993-…

THE DY CIT RG 3(1), MUMBAI vs. M/S. BAJAJ AUTO LTD, MUMBAI

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 1933/MUM/2005[1999-2000]Status: DisposedITAT Mumbai28 Nov 2023AY 1999-2000

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…eciation was of the nature of expense therefore same required to be considered for arriving at the correct income. Therefore, after placing reliance on the ratio laid down by the Hon’ble Supreme Court in Mother India Refrigeration Industries Pvt. Ltd. Vs CIT [155 ITR 711] the eligible profit was worked out after considering the depreciation allowable as per Income Tax Act. 21. After hearing both the sides and perusal of all the material on record, we find that identical issue on similar fact in the cases of the assessee itself has been decided against the assessee by the co-ordinate benches of ITAT the A.Y. 1993-…

ACIT, CC-14, DELHI vs. MAYFAIR RESORTS INDIA LTD., NEW DELHI

In the result, the appeal of the revenue is dismissed

ITA 2008/DEL/2021[2010-11]Status: DisposedITAT Delhi17 Aug 2023AY 2010-11
For Appellant: Shri Yudhister Mehtani, CAFor Respondent: Shri Subhra Jyoti Chakraborty, CIT(DR)
Section 292CSection 69Section 69A

…essing Officer is based on surmises and guess work and on this point case of Dhakeswari Cotton Mills Ltd v. Commissioner of Income Tax, (1954) 26 IT 775, may be referred to.. (viii). In the case of CIT vs. Mother India Refrigeration Industries (P.)v Ltd - SC- 155 ITR 711 Hon'ble Supreme Court observed that - "10. It is true that proviso (b)to section 10(2)(vi)( Corresponding to section 32(2) of Income Tax Act 1961) creates a legal fiction and under that fiction unabsorbed depreciation either with or without current year's depreciation is deemed to be the current year's depreciation but it is well settled, as has…

ACIT -893) (1) , MUMBAI vs. M/S. TRIPLE SECURITIES PVT. LTD, MUMBAI

ITA 2270/MUM/2021[2016-17]Status: DisposedITAT Mumbai20 Dec 2022AY 2016-17
For Appellant: Shri Nitesh JoshiFor Respondent: Ms. Samruddhi Hande
Section 143(3)Section 36Section 43C

…s considered the scope of a deeming provision and came to hold that it cannot be extended beyond the object for which it is enacted. Similar view has been reiterated by the Hon'ble Supreme Court in CIT v. Mother India Refrigeration Industries (P.) Ltd. [1985] 155 ITR 711/ 23 Taxman 8 by laying down that "legal fictions are created only for some definite purpose and these must be limited to that purpose and should not be extended beyond their legitimate field". In CIT v. ACE Builders (P.) Ltd. [2006] 281 ITR 210 /[2005] 144 Taxman 855 (Bom), the Hon'ble jurisdictional High Court considered the facts of a case in w…

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