Mahindra & Mahindra Ltd. v. CIT

261 ITR 501High Court2003#685 most cited

What is Mahindra & Mahindra Ltd. v. CIT authority for?

Section 41(1) of the Income-tax Act cannot be invoked if the assessee has not been granted a deduction for the relevant liability in earlier years.

147

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2026.

Also referred to as

Mahindra & Mahindra Ltd. v. CIT · 261 ITR 501 · Section 41(1) · invocation · no prior deduction · remission of liability · cessation of liability · trading liability · capital goods liability · business income

Also reported as

128 Taxmann 394

Sections most often in play

Section 28(iv)Section 14ASection 143(3)Section 147Section 40(a)(ia)Section 56(2)(x)Section 143(2)Section 148

Issues it is cited on

waiver of loansection 35abbsection 28(iv)section 35ddright to receivesection 41section 41(1)section 80ia(4)section 194hamalgamationsection 32(1)profits and gains of business or profession

Judgments citing Mahindra & Mahindra Ltd. v. CIT

Rollatainers Ltd vs. Commissioner of Income Tax

ITA/127/2011HC Delhi30 Aug 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 139

…utilized to acquire capital assets, decision of the Tribunal as upheld by this Court would apply to the cases where the loan obtained is utilized for acquiring capital assets. (b) In the case of Mahindra & Mahindra Ltd. Vs. Commissioner of Income Tax [261 ITR 501(Bom.)], loan was to purchase plant and machinery – dies, tools, etc., i.e., capital assets. It was on these facts that waiver of principal amount of loan was held to be neither covered by Section 28(iv) nor Section 41 (1) of the Act. (c) In the case of Tosha International Ltd. (supra), neither the Tribunal nor this Court considered the…

Rollatainers Ltd vs. Commissioner of Income Tax

ITA-127/2011HC Delhi30 Aug 2011
Section 139

…utilized to acquire capital assets, decision of the Tribunal as upheld by this Court would apply to the cases where the loan obtained is utilized for acquiring capital assets. (b) In the case of Mahindra & Mahindra Ltd. Vs. Commissioner of Income Tax [261 ITR 501(Bom.)], loan was to purchase plant and machinery – dies, tools, etc., i.e., capital assets. It was on these facts that waiver of principal amount of loan was held to be neither covered by Section 28(iv) nor Section 41 (1) of the Act. (c) In the case of Tosha International Ltd. (supra), neither the Tribunal nor this Court considered the…

Commissioner of Income Tax vs. Agriculturel Market Committee

ITTA/219/2011HC Telangana27 Jun 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

Logitronics Pvt Ltd vs. Commissioner of Income Tax & Anr

ITA/1623/2010HC Delhi18 Feb 2011

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA

Section 2(24)Section 41(1)

…ed to acquire capital assets, decision of the Tribunal as upheld by this Court would apply to the cases where the loan obtained is utilized for acquiring capital assets. (b) In the case of Mahindra & Mahindra Ltd. Vs. Commissioner of Income Tax [261 ITR 501(Bom.)], loan was to purchase plant and machinery – dies, tools, etc., i.e., capital assets. It was on these facts that waiver of principal amount of loan was held to be neither covered by Section 28(iv) nor Section 41 (1) of the Act. ITA No. 1623 of 2010 & ITA No.503 of 2010 Page 6 of 24 (c) In the case of Tosha Intern…

Commissioner of Income Tax vs. Goyal M G Gases Ltd

The appeal is dismissed

ITA/829/2008HC Delhi18 Jan 2010
For Appellant: Ms P.L. Bansal with Ms Anshul SharmaFor Respondent: Mr C.S. Aggarwal, Sr. Advocate with Mr Prakash Kumar
Section 115JSection 143(3)Section 263Section 41(1)

…ssation of liability is in respect of such liability which is allowed as deduction in any of the preceding Assessment years. Thus, section 41(1) has no application in the present case.” 5. In Mahindra and Mahindra Ltd. vs. Commissioner of Income Tax, 261 ITR 501, the High Court of Judicature at Bombay had held that no allowance or deduction having been allowed in respect of loan taken by assessee for purchase of capital assets, Section 41(1) was not attracted to remission of principal amount of loan. 6. In the present case, the assessee did not claim nor was allowed any deduction or benefit of allo…

The Commissioner of Income Tax ¿¿¿ II vs. Jindal Equipments Leasing & Consultancy Services Ltd

ITA-51/2009HC Delhi23 Dec 2009
Section 260ASection 28Section 41Section 41(1)

…* IN THE HIGH COURT OF DELHI AT NEW DELHI ITA No. 51 of 2009 & CM No.15419 Reserved on: 06th November, 2009 % Pronounced on : 23rd December, 2009 The Commissioner of Income Tax – II . . . Appellant through : Mr. Sanjeev Sabharwal, Advocate. VERSUS Jindal Equipments Leasing & Consultancy Services Ltd. . . .Respondent through: Mr. Ajay Vohra with Ms. Kavita Jha and Mr. Sriram Krishna, Advocates. CORAM :- THE HON’BLE MR. JUSTICE A.K. SIKRI THE HON’BLE MR. JUSTICE SIDDHARTH MRIDUL 1. Whether Reporters of Local newspapers may be…

Commissioner of Income Tax vs. Tosha International Ltd

The appeal is dismissed

ITA - 1143 / 2008HC Delhi23 Sept 2008
For Appellant: Mr R. D. Jolly
Section 2(24)Section 28Section 41

…trading liability by way of remission or cessation thereof. The remission would become income only if the assessee has claimed deduction in respect of expenditure or trading liability. In Mahindra & Mahindra Ltd. Vs. CIT, Hon‟ble High Court of Bombay 261 ITR 501, held that no allowance or deduction having been allowed in respect of loan taken by assessee for purchase of capital assets, Section 41 (1) was not attracted to remission of principal amount of loan. In the instant case, the assessee has not got any deduction on account of acquisition of capital assets as the same has been reflected in t…