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June 2025

Section 37 : Disallowing write-off of the deposits and interest – the business loss incurred by the appellant company u/s 28 of the Act in the course of its business – commercial expediency: Section 115J : The provision does not contain any reference to concept of ‘above the line’ or ‘below the line’:

By Ajay R. Singh, Advocate
Reading Time 8 mins

5. M/s. Mahindra & Mahindra Ltd. vs. CIT

City – II, Mumbai

[ITXA No. 416 OF 2003, Dated: 2nd May, 2025 (Bom)(HC)][AY 1990-91]

Section 37 : Disallowing write-off of the deposits and interest - the business loss incurred by the appellant company u/s 28 of the Act in the course of its business - commercial expediency:

Section 115J : The provision does not contain any reference to concept of ‘above the line’ or ‘below the line’:

The appeal pertains to Assessment Year 1990-91. Facts are that the assessee is a public limited company and is engaged in the manufacture of Jeeps, Tractors, Implements and other products. The assessee filed the return of income for the period from 1st April, 1989 to 31st March, 1990 (Assessment Year 1990-91). The Assessing Officer, by an order of assessment dated 26th March, 1993, inter alia; held that the assessee had placed deposits with certain concerns, who have declined to pay the deposits and interest on the ground that the deposits are linked to the amounts provided to M/s. Machinery Manufacturers Corporation Ltd. (MMC) by them, which have now become irrecoverable as MMC was directed to be woun

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