Mahabir Cold Storage v. CIT

188 ITR 91Supreme Court of India1991#8830 most cited

What is Mahabir Cold Storage v. CIT authority for?

Entries in an assessee's books of accounts constitute an acknowledgement of liability under Section 18 of the Limitation Act, 1963, thereby extending the period for discharging the debt.

12

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2011 to 2025.

Also referred to as

Mahabir Cold Storage v CIT · Section 18 Limitation Act · acknowledgement of liability · entries in books of accounts · extension of limitation period · debt discharge · sundry creditors · section 41(1) · section 68

Sections most often in play

Section 143(3)Section 41(1)Section 133(6)Section 133ASection 142(1)Section 144BSection 147Section 148
Read the full judgment

Issues it is cited on

section 41(1)section 18section 41sundry creditorssection 36(1)(va)income-tax officersection 28section 19commissioner (appeals)transfersection 68section 148

Judgments citing Mahabir Cold Storage v. CIT

M/S. Devisha Infrastructure Pvt Ltd, Mumbai vs. ITO Ward 6(2)(2), Mumbai

In the result, appeal of the assessee ITA No

ITA 5782/MUM/2025[2017-18]Status: DisposedITAT Mumbai17 Dec 2025AY 2017-18

Bench: Shri Anikesh Banerjee & Shri Prabhash Shankar

For Appellant: Shri Nishit GandhiFor Respondent: Shri Umashankar Prasad (SR DR)
Section 143(3)Section 147Section 148Section 148ASection 151Section 250Section 282ASection 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER I.T.A No.5781/Mum/2025 - A.Y. 2019-20 I.T.A No.5782/Mum/2025 - A.Y. 2017-18 M/s Devisha Infrastructure vs ITO Ward 6(2)(2), Mumbai Room no.510, 5th Floor, Aaykar Pvt Ltd, 5th Floor, Militia Apartment, Bhavan, M.K.Road, Mumbai. M.P. Road, Mazgaon, Mumbai-400 010 PAN : AACCD5192R APPELLANT RESPONDENT Assessee by : Shri Nishit Gandhi Respondent by : Shri Umashankar Prasad (SR DR) Date of hearing : 03/12/2025 Date of pronouncement : 17/12/2025 O R D E R Per: An…

M/S. Devisha Infrastructure Pvt Ltd, Mumbai vs. ITO Ward 6(2)(2), Mumbai

In the result, appeal of the assessee ITA No

ITA 5781/MUM/2025[2019-20]Status: DisposedITAT Mumbai17 Dec 2025AY 2019-20

Bench: Shri Anikesh Banerjee & Shri Prabhash Shankar

For Appellant: Shri Nishit GandhiFor Respondent: Shri Umashankar Prasad (SR DR)
Section 143(3)Section 147Section 148Section 148ASection 151Section 250Section 282ASection 41(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER I.T.A No.5781/Mum/2025 - A.Y. 2019-20 I.T.A No.5782/Mum/2025 - A.Y. 2017-18 M/s Devisha Infrastructure vs ITO Ward 6(2)(2), Mumbai Room no.510, 5th Floor, Aaykar Pvt Ltd, 5th Floor, Militia Apartment, Bhavan, M.K.Road, Mumbai. M.P. Road, Mazgaon, Mumbai-400 010 PAN : AACCD5192R APPELLANT RESPONDENT Assessee by : Shri Nishit Gandhi Respondent by : Shri Umashankar Prasad (SR DR) Date of hearing : 03/12/2025 Date of pronouncement : 17/12/2025 O R D E R Per: An…

Dy.Commissioner of Income Tax, CC-2, Kanpur vs. Shri.Mohammad Asfand Akhtar, Kanpur

In the result, the appeal of Revenue in ITA

ITA 144/LKW/2022[2018-19]Status: DisposedITAT Lucknow26 Sept 2025AY 2018-19

Bench: Shri Sudhanshu Srivastava & Shri Anadee Nath Misshraassessment Year: 2018-19 Dcit, Cc-2 V. Shri Mohammad Asfand Laxmi Niwas, 10/503, Akhtar Allenganj, Kanpur-208001. Plot No.02, Block-B, Scheme-39, Ram Rai Ki Sarai, Jajmau, Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Assessment Year: 2018-19 Shri Mohammad Asfand Akhtar V. Dcit, Central Circle-Ii Plot No.02, Block-B, Scheme-39, 10/503, Allenganj, Kanpur- Ram Rai Ki Sarai, Jajmau, 208001. Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Appellant By: Shri Ashish Jaiswal, Advocate Respondent By: Shri R. K. Agarwal, Cit(Dr) O R D E R

For Appellant: Shri Ashish Jaiswal, AdvocateFor Respondent: Shri R. K. Agarwal, CIT(DR)
Section 143(3)Section 36(1)(va)Section 37Section 41Section 41(1)Section 68Section 69C

…limitation prescribed under the Limitation Act cannot extinguish the debt but it will only prevent the creditor from enforcing the debt is well-settled. Reliance in this regard, is placed upon the decision in the case of Mahabir Cold Storage -vs.- CIT (1991) 188 ITR 91 (SC), wherein the Hon’ble Supreme Court held that the entries in the books of accounts of the assessee would amount to an acknowledgement of the liability as debt. To the same effect, in the case of Ambica Mills Ltd. -vs.- CIT (1964) 54 ITR 167 (Guj.), wherein it was further held that a debt shown in a balance sheet of a company amounts to an ackn…

Mohd. Asfand Akhtar, Kanpur vs. Deputi Commissioner of Income Tax CC-2, Kanpur

In the result, the appeal of Revenue in ITA

ITA 139/LKW/2022[2018-19]Status: DisposedITAT Lucknow26 Sept 2025AY 2018-19

Bench: Shri Sudhanshu Srivastava & Shri Anadee Nath Misshraassessment Year: 2018-19 Dcit, Cc-2 V. Shri Mohammad Asfand Laxmi Niwas, 10/503, Akhtar Allenganj, Kanpur-208001. Plot No.02, Block-B, Scheme-39, Ram Rai Ki Sarai, Jajmau, Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Assessment Year: 2018-19 Shri Mohammad Asfand Akhtar V. Dcit, Central Circle-Ii Plot No.02, Block-B, Scheme-39, 10/503, Allenganj, Kanpur- Ram Rai Ki Sarai, Jajmau, 208001. Kanpur Nagar-208010. Tan/Pan: Aempa0823R (Appellant) (Respondent) Appellant By: Shri Ashish Jaiswal, Advocate Respondent By: Shri R. K. Agarwal, Cit(Dr) O R D E R

For Appellant: Shri Ashish Jaiswal, AdvocateFor Respondent: Shri R. K. Agarwal, CIT(DR)
Section 143(3)Section 36(1)(va)Section 37Section 41Section 41(1)Section 68Section 69C

…limitation prescribed under the Limitation Act cannot extinguish the debt but it will only prevent the creditor from enforcing the debt is well-settled. Reliance in this regard, is placed upon the decision in the case of Mahabir Cold Storage -vs.- CIT (1991) 188 ITR 91 (SC), wherein the Hon’ble Supreme Court held that the entries in the books of accounts of the assessee would amount to an acknowledgement of the liability as debt. To the same effect, in the case of Ambica Mills Ltd. -vs.- CIT (1964) 54 ITR 167 (Guj.), wherein it was further held that a debt shown in a balance sheet of a company amounts to an ackn…

DCIT Circle 27(1), New Delhi vs. United Drilling Tools Ltd., New Delhi

In the result, the Appeal filed by the Revenue is dismissed

ITA 5913/DEL/2019[2015-16]Status: DisposedITAT Delhi06 Dec 2024AY 2015-16

Bench: Before Shri Shamim Yahya & Shri Yogesh Kumar U.S.

Section 143(1)Section 143(2)Section 36(1)(va)

…ove Properties [1949] 2KB 700, it was held that a statement in a balance sheet of a company presented to a creditor- share holder of the company and duly signed by the directors constitutes an acknowledgement of the debt. In Mahabir Cold Storage v. CIT [1991] 188 ITR 91/56 Taxman 4ZF, the Supreme Court held: "The entries in the books of accounts of the appellant would amount to an acknowledgement of the liability to Messrs. Prayagchand Hanumanmal within the meaning of Section 18 of the Limitation Act, 1963, and extend the period of limitation for the discharge of the liability as debt." In several judgments of t…

Mackinnon Mackenzie & Co.Ltd, Mumbai vs. ITO 2(2)(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2392/MUM/2012[2007-08]Status: DisposedITAT Mumbai11 May 2017AY 2007-08

Bench: Shri D.T.Garasia, Jm & Shri Rajesh Kumar, Am

For Appellant: Shri Hariom TulsyanFor Respondent: Shri Suman Kumar
Section 143(1)Section 143(2)Section 28Section 41(1)

…ove Properties [1949] 2KB 700, it was held that a statement in a balance sheet of a company presented to a creditor- share holder of the company and duly signed by the directors constitutes an acknowledgement of the debt. In Mahabir Cold Storage v. CIT [1991] 188 ITR 91/56 Taxman 4ZF , the Supreme Court held: "The entries in the books of accounts of the appellant would amount to an acknowledgement of the liability to Messrs. Prayagchand Hanumanmal within the meaning of Section 18 of the Limitation Act, 1963, and extend the period of limitation for the discharge of the liability as debt." 13 10. Upon perusal of t…

Bilt Industrial Packaging Co. Ltd., New Delhi vs. ACIT, Coimbatore

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

ITA 1934/CHNY/2015[2011-12]Status: DisposedITAT Chennai26 May 2016AY 2011-12

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Prakash Chand Yadav, AdvocateFor Respondent: Smt. Vijayalakshmi, IRS, CIT
Section 142(1)Section 143(2)Section 143(3)Section 271(1)(c)Section 41Section 41(1)Section 5

…rised Representative submitted and relid on the decisions: (1) CIT vs. Shri. Vardhman Overseas 343 ITR 408 (Del) (2) POABS Rocks Products (P) ltd vs. DICT 19 ITR 0546 (3) CIT vs. Sugauli Sugar Works (P) Ltd 236 ITR 518 (SC) (4) Mahabir Cold Storage vs. CIT 188 ITR 91 (SC) (5) Glen Williams vs. ACIT in ITA No.1078/Bang/2014 (Bangalore) (6) M/s. Perfect Paradise Emporium vs. ITO in ITA No. 159/Del/2011. ITA No.1934/Mds/2015. :- 11 -: One crucial aspect on sundry creditors were the assessee company for the first time filed before Tribunal the list of Creditors to the extent of available address. The ld. Depart…

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

ITA 3061/DEL/2011[2006-07]Status: DisposedITAT Delhi11 Mar 2016AY 2006-07

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

Section 133ASection 142Section 143(2)Section 144Section 146Section 250

…Page 1 of 144 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘B’: NEW DELHI) BEFORE SHRI A.T. VARKEY, JUDICIAL MEMBER and SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No.2677/Del./2011 (ASSESSMENT YEAR: 2006-07) M/s. DLF Limited vs. Addl.CIT, DLF Centre, 9th Floor, Sansad Range 10, New Delhi Marg, New Delhi – 110 001. (PAN AAACD3494N) Appellant Respondent ITA No.3061/Del./2011 (ASSESSMENT YEAR: 2006-07) Addl.CIT, vs. M/s. DLF Limited Range 10, DLF Centre, 9th Floor, New Delhi Sansad Marg, New Delhi – 110 001. (PAN AACD3494N Appellant Respondent Assesse by Shri R.S. Singhvi, Advocate Page 2 of 144 Revenue b…

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

ITA 2677/DEL/2011[2006-07]Status: DisposedITAT Delhi11 Mar 2016AY 2006-07

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

Section 133ASection 142Section 143(2)Section 144Section 146Section 250

…Page 1 of 144 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘B’: NEW DELHI) BEFORE SHRI A.T. VARKEY, JUDICIAL MEMBER and SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA No.2677/Del./2011 (ASSESSMENT YEAR: 2006-07) M/s. DLF Limited vs. Addl.CIT, DLF Centre, 9th Floor, Sansad Range 10, New Delhi Marg, New Delhi – 110 001. (PAN AAACD3494N) Appellant Respondent ITA No.3061/Del./2011 (ASSESSMENT YEAR: 2006-07) Addl.CIT, vs. M/s. DLF Limited Range 10, DLF Centre, 9th Floor, New Delhi Sansad Marg, New Delhi – 110 001. (PAN AACD3494N Appellant Respondent Assesse by Shri R.S. Singhvi, Advocate Page 2 of 144 Revenue b…

The Commissioner of Income Tax-III vs. Shri Vardhman Overseas Ltd

ITA/774/2009HC Delhi23 Dec 2011

Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE R.V.EASWAR

Section 260ASection 41(1)Section 68

…roperties, (1949) 2KB 700, it was held that a statement in a balance sheet of a company presented to a creditor- share holder of the company and duly signed by the directors constitutes an acknowledgement of the debt. In Mahabir Cold Storage v.CIT (1991) 188 ITR 91, the Supreme Court held: ―The entries in the books of accounts of the appellant would amount to an acknowledgement of the liability to Messrs. Prayagchand Hanumanmal within the meaning of Section 18 of the Limitation Act, 1963, and extend the period of limitation for the discharge of the liability as debt.‖ ITA No.774/2009…

The Commissioner of Income Tax-III vs. Shri Vardhman Overseas Ltd

ITA-774/2009HC Delhi23 Dec 2011
Section 260ASection 41(1)Section 68

…roperties, (1949) 2KB 700, it was held that a statement in a balance sheet of a company presented to a creditor- share holder of the company and duly signed by the directors constitutes an acknowledgement of the debt. In Mahabir Cold Storage v.CIT (1991) 188 ITR 91, the Supreme Court held: ―The entries in the books of accounts of the appellant would amount to an acknowledgement of the liability to Messrs. Prayagchand Hanumanmal within the meaning of Section 18 of the Limitation Act, 1963, and extend the period of limitation for the discharge of the liability as debt.‖ 2011:DHC:6638-DB ITA No.774/200…

The Commissioner of Income Tax-III vs. Shri Vardhman Overseas Ltd

ITA - 774 / 2009HC Delhi23 Dec 2011
Section 260ASection 41(1)Section 68

…roperties, (1949) 2KB 700, it was held that a statement in a balance sheet of a company presented to a creditor- share holder of the company and duly signed by the directors constitutes an acknowledgement of the debt. In Mahabir Cold Storage v.CIT (1991) 188 ITR 91, the Supreme Court held: ―The entries in the books of accounts of the appellant would amount to an acknowledgement of the liability to Messrs. Prayagchand Hanumanmal within the meaning of Section 18 of the Limitation Act, 1963, and extend the period of limitation for the discharge of the liability as debt.‖ 2011:DHC:6638-DB ITA No.774/200…

Mahabir Cold Storage v. CIT (188 ITR 91) — Cited in 12 Judgments | BharatTax