M/S. MAHINDRA and MAHINDRA LTD vs THE COMMISSIONER OF INCOME-TAX, CITY-II, MUMBAI.

Judgment text excerpt

416.03-itxa.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 416 OF 2003 BASAVRAJ M/s. Mahindra & Mahindra Ltd. GURAPPA PATIL Gateway Building, Digitally signed by BASAVRAJ GURAPPA Apollo Bunder, PATIL Date: 2025.05.02 Mumbai – 400 039 .. Appellant 20:30:08 +0530 Versus Commissioner of Income-tax, City -II, Aayakar Bhavan, M. K. Road, Mumbai 400 020. .. Respondent Mr. J. D. Mistri, Senior Advocate a/w Mr. B. V. Jhaveri and Ms. Bhargavi Raval for the appellant. Mr. N. C. Mohanty a/w Sanaita Choure for respondent. CORAM: ALOK ARADHE, CJ. & M. S. KARNIK, J. RESERVED ON : APRIL 24, 2025 PRONOUNCED ON : MAY 2, 2025 JUDGMENT (PER : CHIEF JUSTICE) 1. This appeal under Section 260A of the Income Tax Act, 1961 (1961 Act) has been filed by the assessee. The subject matter of the appeal pertains to Assessment Year 1990-91. The appeal was admitted on the following substantial questions of law: “(i) Whether, on the facts and in circumstances of the case as well as in law, the Tribunal was right in disallowing write-off of the deposits and interest thereon as the business loss of Rs.200.47 lakhs incurred by the appellant company u/s.28 of the Act in the course of its business? Basavraj Page|1 416.03-itxa.docx (ii) Whether the Assessing Officer, while determining the book profit under section 115J of the Act, can question the correctness of the profit and loss account prepared and certified by the statutory auditors of the appellant company as having been prepared in accordance with the requirements of Parts II and III of Schedule VI to the Companies Act, 1956?” 2. Thereafter, during the course of hearing, following additional substantial question of law was framed: Additional substantial question of law: Whether the Tribunal co