CIT v. Motor General Finance Ltd.

254 ITR 449High Court2002#1810 most cited

What is CIT v. Motor General Finance Ltd. authority for?

When an assessee fails to comply with statutory notices or produce relevant documents despite opportunities, the Assessing Officer is justified in drawing an adverse inference under Section 114 of the Evidence Act and making a best judgment assessment under Section 144.

63

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Motor General Finance Ltd. · 254 ITR 449 · Section 144 best judgment assessment · Section 142(1) non-compliance · adverse inference · Section 114 Evidence Act · failure to produce documents · justification for best judgment · reassessment Section 147.

Sections most often in play

Section 144Section 147Section 148Section 142(1)Section 250Section 144BSection 132Section 133A

Issues it is cited on

section 226section 80hhc(3)section 115jasection 14a(1)section 28(iv)section 211mat creditsection 114section 80hsection 244asection 36(2)retrospective amendment

Judgments citing CIT v. Motor General Finance Ltd.

Royal Cushion Vinyl Products Ltd, Mumbai vs. ACIT 9(3), Mumbai

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

ITA 6594/MUM/2010[2006-07]Status: DisposedITAT Mumbai30 Sept 2016AY 2006-07

Bench: Shri Saktijit Dey() & Shri N.K. Pradhan () Assessment Year:2006-07

For Appellant: Shri Mayur A ShahFor Respondent: Smt. Amrita Singh
Section 143(3)Section 43B

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “D”, MUMBAI BEFORE SHRI SAKTIJIT DEY(JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year:2006-07 M/s Royal Cushion Vinyl Products Ltd. Vs. ACIT 9 (3), Aayakar Bhavan Plot 60 CD, Shlok Building, 1st Floor, Mumbai-400020 Govt. Ind. Estate, Charkop, Kandivli (W), Mumbai-400067. PAN No. AAACR5308P (Appellant) (Respondent) Appellant by : Shri Mayur A Shah, Respondent By : Smt. Amrita Singh, Date of Hearing : 17/08/2016 Date of pronouncement : 30/09/2016 ORDER PER N.K. PRADHAN, A.M This is an appeal filed by the assessee. The relevant asses…

Rajendra H Salot, Mumbai vs. ITO 15(1)(4), Mumbai

The appeal of the assessee is partly allowed

ITA 4050/MUM/2013[2009-10]Status: DisposedITAT Mumbai05 Jul 2016AY 2009-10

Bench: Shri Joginder Singh & Shri Ashwani Tanejaassessment Year: 2009-10 Mr. Rajendra H. Salot, Ito-15(1)(4), 18, Maheswar Prakash, Mumbai बनाम/ Building No.1, Jain Derasar Vs. Lane, Santacruz (West), Mumbai-400054 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aalps6170L

Section 36(1)(iii)Section 37(1)Section 40

…d by the subsidiary for business purposes, the holding company was held to be entitled to deduction of interest on its borrowed loans. The only condition is that it should be used for business purposes. The ratio laid down in CIT vs Motor General Finance Ltd. 272 ITR 550 (Del.) supports the case of the assessee. Even otherwise, section 40A(2)(a) cannot have any application unless it is first held that expenditure was excessive and unreasonable as was held by Hon’ble Apex Court in Upper India Publishing House Pvt. Ltd. vs CIT (1979) 117 ITR 569 (SC) and Corronation Flour Mills vs ACIT (2009) 314 ITR (Guj.). Consid…

P.Sundararajan, Avanashi vs. DCIT, Tiruppur

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

ITA 1666/CHNY/2013[2006-07]Status: DisposedITAT Chennai25 Jun 2015AY 2006-07

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. No.1666/Mds/2013 ("नधा"रण वष" / Assessment Year : 2006-2007)

For Appellant: Shri. G. Baskar, AdvocateFor Respondent: Shri. N. Madhavan, IRS, JCIT
Section 143(3)Section 147Section 148Section 36

…s and the sister concerns, and so long as the advances are interest free, the Assessing Officer is perfectly justified in disallowing the interest in proportion to the advances made.’’ 14.4 We may notice that in the case of CIT v. Motor General Finance Ltd. 254 ITR 449, Delhi High Court held as under (page 460): ‘’From the conspectus of the decisions as noticed hereinbefore, there cannot be any doubt whatsoever I.T.A.No.1666/Mds/2013. :- 23 -: that the nexus between the amount paid by way of advance to a sister concern and the fund available at the relevant time in the assessee's hands must be found out fro…