Motor and General Sales Pvt. Ltd. v. CIT

ACIT, New Delhi vs. M/S. Ge Capital Transportation Financial Services Ltd., New Delhi

In the result, appeal filed by Revenue is dismissed and that of the assessee is partly allowed

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

…ssee as the same is not an ascertained expenditure. 6 I.T.A.No.763,514/Del/2011 Ld. D.R. submitted that the view taken by the Ld. A.O. is supported by the decision of Allahabad High Court in case of Motor and General Sales (P) Ltd. Vs CIT reported in (1997) 226 ITR 137. He submitted that unless the assessee elaborated on how the realizable value was estimated, the loss was a notional loss and cannot be allowed as a revenue expenditure. 7. On the contrary the Ld. A.R. submitted that the assessee company is a non-banking finance company engaged in business of providing finance to industry and as per directions is…

Ge Capital Services India, New Delhi vs. DCIT, New Delhi

In the result, appeal filed by Revenue is dismissed and that of the assessee is partly allowed

Bench: Shri G. D. Agrawal, Hon’Ble & Smt. Beena A. Pillai

…ssee as the same is not an ascertained expenditure. 6 I.T.A.No.763,514/Del/2011 Ld. D.R. submitted that the view taken by the Ld. A.O. is supported by the decision of Allahabad High Court in case of Motor and General Sales (P) Ltd. Vs CIT reported in (1997) 226 ITR 137. He submitted that unless the assessee elaborated on how the realizable value was estimated, the loss was a notional loss and cannot be allowed as a revenue expenditure. 7. On the contrary the Ld. A.R. submitted that the assessee company is a non-banking finance company engaged in business of providing finance to industry and as per directions is…

DCIT, New Delhi vs. M/S. Escorts Finance Ltd., Faridabad

In the result, the appeal of the appellant is allowed

Bench: Shri H.S. Sidhu & Shri O.P. Kant

…The Assessing Officer, however, refused to allow the said claim on the ground that these repossessed vehicles cannot be construed as stock-in-trade. He relied upon the judgment of Allahabad High Court in the case of Motor & General Sales Pvt. Ltd Vs. CIT, 226 ITR 137 in taking the aforesaid view. The CIT(A), however, reversed this order of the Assessing Officer holding that the claim was covered by Section 36 (1) (vii) read with Section 36 (2) of the Act. He was also of the view that it was not a case of trading loss under Section 28 of the Act. According to him, on the facts of this case, judgment of 21…

Ge Money Financial Services Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result ground, no

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

…ng the year, the ld. AO has disallowed this loss holding that this loss has not been actually incurred by the assessee. For disallowing this AO relied on the decision of the Hon‟ble Allahabad High Court in the case of Motor and General Sales Pvt. Ltd. vs. CIT 226 ITR 137. 20. The ld. AR submitted that this is real loss incurred by the assessee and not a hypothetical loss. It is just like writing off the bad debts in the books of the company. The ld. AR further submitted that this issue is squarely covered in the case of the assessee by the decision in the case of CIT Vs.Citicorps Maruti finance Limited In ITA No…

Ge Money Financial Services Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the result ground, no

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

…ng the year, the ld. AO has disallowed this loss holding that this loss has not been actually incurred by the assessee. For disallowing this AO relied on the decision of the Hon‟ble Allahabad High Court in the case of Motor and General Sales Pvt. Ltd. vs. CIT 226 ITR 137. 20. The ld. AR submitted that this is real loss incurred by the assessee and not a hypothetical loss. It is just like writing off the bad debts in the books of the company. The ld. AR further submitted that this issue is squarely covered in the case of the assessee by the decision in the case of CIT Vs.Citicorps Maruti finance Limited In ITA No…

Ge Money Financial Services Limited, Delhi vs. DCIT, New Delhi

In the result the appeal of the assessee is dismissed for the A

Bench: Shri I.C. Sudhir & Shri J.Sudhakar Reddya.Y. 2002-03 A.Y. 2003-04

…is placed on the judgement of Hon’ble Delhi High Court in the case of M/s Sun Beam Auto Ltd. in ITA no.1399/2006 dt. 11.9.2009. (h) Reliance was placed on the judgement of Hon’ble Allahabad High Court in the case of Motor and General Sales P.Ltd. reported in 226 ITR 137 (All), by the Ld.CIT, is bad in law as, in fact this case law supports the claims made by the assessee. (i) The Ld.CIT has in principle, for the A.Y. 2002-03, came to a conclusion that the loss in question is a business loss. Under the circumstances, setting aside for the limited purpose of verification of quantification of the loss is uncalled…

Ge Money Financial Services Ltd vs. CIT

In the result the appeal of the assessee is dismissed for the A

Bench: Shri I.C. Sudhir & Shri J.Sudhakar Reddya.Y. 2002-03 A.Y. 2003-04

…is placed on the judgement of Hon’ble Delhi High Court in the case of M/s Sun Beam Auto Ltd. in ITA no.1399/2006 dt. 11.9.2009. (h) Reliance was placed on the judgement of Hon’ble Allahabad High Court in the case of Motor and General Sales P.Ltd. reported in 226 ITR 137 (All), by the Ld.CIT, is bad in law as, in fact this case law supports the claims made by the assessee. (i) The Ld.CIT has in principle, for the A.Y. 2002-03, came to a conclusion that the loss in question is a business loss. Under the circumstances, setting aside for the limited purpose of verification of quantification of the loss is uncalled…

Ge Money Financial Services Ltd vs. CIT Delhi IV

In the result the appeal of the assessee is dismissed for the A

Bench: Shri I.C. Sudhir & Shri J.Sudhakar Reddya.Y. 2002-03 A.Y. 2003-04

…is placed on the judgement of Hon’ble Delhi High Court in the case of M/s Sun Beam Auto Ltd. in ITA no.1399/2006 dt. 11.9.2009. (h) Reliance was placed on the judgement of Hon’ble Allahabad High Court in the case of Motor and General Sales P.Ltd. reported in 226 ITR 137 (All), by the Ld.CIT, is bad in law as, in fact this case law supports the claims made by the assessee. (i) The Ld.CIT has in principle, for the A.Y. 2002-03, came to a conclusion that the loss in question is a business loss. Under the circumstances, setting aside for the limited purpose of verification of quantification of the loss is uncalled…

Ge Capital Transportation Financial Sevices Ltd vs. DCIT, Circle-12(1)

Appeal is allowed

Bench: Shri N. K. Saini & Smt Suchitra Kamblei.T.A .No.-2190/Del/2006 (Assessment Year-2001-02)

…en on hire purchase, but was repossessed by the assessee because the borrowers defaulted on the installments. The Assessing Officer took the view that in light of the decision of Allahabad High Court in case of Motor and General Sales Pvt. Ltd. Vs. CIT (1997) 226 ITR 137 and for the reasons given in the assessment order of Assessment Year 95-96, the loss on repossessed hire-purchase assets is not allowable as deduction because it is basically of the nature of capital loss/business loss. 6. The CIT(A) held that the real business of the company is not one simply of giving loans or money lending. In the business of…

DCIT, Circle-12(1) vs. G.E. Capital Transportation Financial Services Ltd

Appeal is allowed

Bench: Shri N. K. Saini & Smt Suchitra Kamblei.T.A .No.-2190/Del/2006 (Assessment Year-2001-02)

…en on hire purchase, but was repossessed by the assessee because the borrowers defaulted on the installments. The Assessing Officer took the view that in light of the decision of Allahabad High Court in case of Motor and General Sales Pvt. Ltd. Vs. CIT (1997) 226 ITR 137 and for the reasons given in the assessment order of Assessment Year 95-96, the loss on repossessed hire-purchase assets is not allowable as deduction because it is basically of the nature of capital loss/business loss. 6. The CIT(A) held that the real business of the company is not one simply of giving loans or money lending. In the business of…

CIT vs. Citicorp Maruti Finance Limited

Appeal is dismissed accordingly

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE SURESH KUMAR KAIT

…e Assessing Officer, however, refused to allow the said claim on the ground that these repossessed vehicles cannot be construed as stock-in- trade. He relied upon the judgment of Allahabad High Court in the case of Motor & General Sales Pvt. Ltd Vs. CIT, 226 ITR 137 in taking the aforesaid view. The CIT (A), however, reversed this order of the Assessing Officer holding that the claim was covered by Section 36 (1) (vii) read with Section 36 (2) of the Act. He was also of the view that it was not a case of trading loss under Section 28 of the Act. According to him, on the facts of this case, judgment…

CIT vs. Citicorp Maruti Finance Limited

Appeal is dismissed accordingly

…e Assessing Officer, however, refused to allow the said claim on the ground that these repossessed vehicles cannot be construed as stock-in- trade. He relied upon the judgment of Allahabad High Court in the case of Motor & General Sales Pvt. Ltd Vs. CIT, 226 ITR 137 in taking the aforesaid view. The CIT (A), however, reversed this order of the Assessing Officer holding that the claim was covered by Section 36 (1) (vii) read with Section 36 (2) of the Act. He was also of the 2010:DHC:5425-DB A.W.Figgies & Co. Pvt. Ltd. 254 ITR 63 was directly applicable. The ITAT has affirmed the aforesaid view. (…

Commissioner of Income Tax vs. Front Line Securities Limited

Appeal is dismissed accordingly

Bench: The Assessing Officer As To Whether This Loss Was A Business Loss Or Speculative Loss. According To The Ao, The Case Of The Assessee Falls Within The Provisions Of Explanation To Section 73 Of The Income Tax Act (Hereinafter Referred To As ‘The Act’) & Treating The Said Loss To

…ion to Section 73 is applicable or not, the interest income well as lease rental income has to be taken into consideration. Further reliance was placed on the decision of Hon‟ble Allahabad High Court in the case of Motor & General Sales Pvt. Ltd. Vs. CIT 226 ITR 137 wherein financing of vehicles was held as business of money lending. Reliance was also placed on the decision of Hon‟ble Supreme Court reported in 196 ITR 149/156. 7. We have heard rival submissions and considered them carefully. After considering the relevant material and case laws and the details on which our attentions were drawn by…