How many judgments cite CIT v. National Storage (P.) Ltd.?

23 judgments on BharatTax cite CIT v. National Storage (P.) Ltd. (66 ITR 596), spanning 2015 to 2025.

Which sections of the Income Tax Act does CIT v. National Storage (P.) Ltd. come up under?

It is most often cited in judgments turning on Section 143(3), Section 14A, Section 194-I, Section 2(13), Section 24, Section 37(1).

CIT v. National Storage (P.) Ltd.

66 ITR 596Supreme Court of India1967#5087 most cited

What is CIT v. National Storage (P.) Ltd. authority for?

Income from letting property is not business income if the letting is merely a means of realizing the annual value of the property. However, if the assessee undertakes an adventure or concern in the nature of trade by providing additional services beyond mere letting, the income can be taxed under the head 'Profits and gains of business or profession'.

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v National Storage · business income · house property income · adventure in nature of trade · letting property · ancillary services · section 22 · section 24 · profits and gains of business

Sections most often in play

Section 143(3)Section 14A Section 194-I Section 2(13)Section 24 Section 37(1)Section 119 Section 143(1)

Issues it is cited on

annual value section 22 profits and gains of business or profession section 24 section 19 salary income from other sources assistant commissioner section 143(1)transfer company india

Judgments citing CIT v. National Storage (P.) Ltd.

DCIT, CIRCLE -3(1), VISAKHAPATNAM vs. NORD ANGLIA EDUCATION INFRASTRUCTURE PRIVATE LIMITED, VISAKHAPATNAM

In the result, all the appeals filed by the revenue, viz

ITA 314/VIZ/2025[2014-15]Status: DisposedITAT Visakhapatnam26 Nov 2025AY 2014-15

Bench: Shri Ravish Sood & Shri Balakrishnan S.

For Appellant: 1.Shri Karnjot Singh KhuranaFor Respondent: Shri Badicala Yadagiri, CIT-DR

Section 143(3)

…ut back into business to acquire more properties for further profitable exploitation then the said income should be taxed under the Head "Profits and gains of business or profession". Hon’ble Supreme Court decision in case of CIT vs National Storage (P.) Ltd (66 ITR 596) wherein Hon’ble Court held that assessee not only constructed vaults of special designs and special doors and electrical fittings but also rendered other services to vault holder – Fire alarm was installed and expenditure incurred for its maintenance was paid to municipality - Two railway booking offices were opened for dispatch and receipt of fi…

DCIT, CIRCLE - 3(1), VISAKHAPATNAM vs. NORD ANGLIA EDUCATION INFRASTRUCTURE PRIVATE LIMITED, VISAKHAPATNAM

In the result, all the appeals filed by the revenue, viz

ITA 206/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam26 Nov 2025AY 2018-19

Bench: Shri Ravish Sood & Shri Balakrishnan S.

For Appellant: 1.Shri Karnjot Singh KhuranaFor Respondent: Shri Badicala Yadagiri, CIT-DR

Section 143(3)

The Commissioner of Income Tax-IV vs. M/s Pokarna Limited

The appeals are dismissed

ITTA/273/2012HC Telangana18 Feb 2025

Bench: P.SAM KOSHY,NARSING RAO NANDIKONDA

Section 260A

…onsisted of only in owning property and collecting of rent. The re was no exploitation of the property for commercial or business purposes in these cases. The Supreme Court considered the question in the case of CIT v. National Storage Pvt. Ltd. (1967) 66 ITR 596. In that case the assessee after purchasing a plot of land constructed 13 units thereon, 12 units meant for the members of the Indian Motion Picture Distributors’ Association, who had floated the company, and one unit for Foreign Film Distributors in Bombay, who were not members of the Association. Each unit was divided into four vaults,…

THE ACIT, CORP CIRCLE-1(2), KOCHI vs. M/S.KNOWELL REALTORS INDIA P. LTD, KOCHI

In the result, the Revenue’s appeals are allowed

ITA 193/COCH/2019[2015-16]Status: DisposedITAT Cochin25 Sept 2023AY 2015-16

Bench: Shri Sanjay Arora, Am &Shri Manomohan Das, Jm

For Appellant: Sri. Santosh P. Abraham, AdvFor Respondent: Smt.J.M.Jamuna Devi, Sr.DR

Section 143(3)Section 268A

…ssue as to the head of income qua house property or business income would thus have in each case to be decided on the basis of this framework. Letting, per se, as explained in CIT v. National Storage (P.) Ltd. [1963] 48 ITR 577 (Bom) (since affirmed in [1967] 66 ITR 596 (SC)), which thus becomes a means of realizing the annual value of a house property and, thus, is integral to it’s ownership, is not ‘business’ under the Act. The proposition remains undiluted to date. Even if therefore the exploitation of property is one of the objects for which a company is formed, it may not, as clarified in East India Housing…

THE ACIT, CORP CIRCLE-1(2), KOCHI vs. M/S.KNOWELL REALTORS INDIA P. LTD, KOCHI

In the result, the Revenue’s appeals are allowed

ITA 192/COCH/2019[2012-13]Status: DisposedITAT Cochin25 Sept 2023AY 2012-13

Bench: Shri Sanjay Arora, Am &Shri Manomohan Das, Jm

For Appellant: Sri. Santosh P. Abraham, AdvFor Respondent: Smt.J.M.Jamuna Devi, Sr.DR

Section 143(3)Section 268A

ACIT, CIRCLE-26(1), NEW DELHI vs. VARIETY SERVICES NOIDA P.LTD, NEW DELHI

In the result, appeal of the revenue is dismissed

ITA 6461/DEL/2018[2014-15]Status: DisposedITAT Delhi18 Oct 2022AY 2014-15

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. M. P. Rastogi, CAFor Respondent: Sh. Atiq Ahmed, Sr. DR

…xpenses, repair and maintenances charges, site security expenses and 3 Variety Services Noida P. Ltd. other electricity charges against these receipts. We have gone through the judgment of Hon’ble Supreme Court in the case of CIT Vs. National Storage Pvt. Ltd 66 ITR 596 with relevance to taxation of income under Chapter IV-D of the IT Act and also the judgment of the Hon’ble Apex Court in the case of Chennai Properties and Investment Ltd 231 Taxmann 336. Keeping in view the ratio laid down by the Hon’ble Apex Court in these two judgments, we have no hesitation to hold that the income received by the Assessee by t…

SHRI PREMKUMAR MENON,,CHENNAI vs. ACIT, NCC-17(1),, CHENNAI

In the result, the appeal of the assessee is allowed

ITA 3070/CHNY/2019[2016-17]Status: DisposedITAT Chennai21 Sept 2022AY 2016-17

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकर अपील सं./Ita No.3070/Chny/2019 िनधा"रण वष" /Assessment Year: 2016-17 Shri Premkumar Menon, The Asst. Commissioner Of “Menon Eternity Building” Vs. Income Tax, (10Th Floor), No.165, Non Corporate Circle-17(1), St. Mary’S Road, Alwarpet, Chennai. Chennai – 600 018. [Pan: Aiapp-7309-R] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : Shri R. Vijayaraghavan, Advocate ""यथ" क" ओर से /Respondent By : Shri P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 05.09.2022 घोषणा क" तारीख /Date Of Pronouncement : 21.09.2022

For Appellant: Shri R. Vijayaraghavan, AdvocateFor Respondent: Shri P. Sajit Kumar, JCIT

Section 143(3)Section 24

…mary activity of the assessee was to let out the premises and the services rendered were merely incidental. In support of his contention he relied on the ratio of the decision of this court in Commissioner of Income-tax v. National Storage Private Ltd. [1967] 66 ITR 596 (SC): TC13R.914. He alternatively contended that the income said to have been realised as a result of rendering the services by the assessee should have been brought to tax under section 12(4). For that contention he relied on the decision of this court in Sultan Brothers Private Ltd. v. Commissioner of Income-tax [1964] 51 ITR 353 (SC) : TC13R. 7…

TRAVANCORE SUGARS AND CHEMICALS LTD. vs. COMMISSIONER OF INCOME TAX

ITA/12/2008HC Kerala31 Mar 2022

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS,HONOURABLE MR.JUSTICE BASANT BALAJI

…see in the subject Assessment Year has shown the rental income as income from the business. The assessee's case is that regarding operational advantages the assessee derives by letting out the godown to 4 (1961) 42 ITR 49 5 (1962) 44 ITR 362 6 (1967) 66 ITR 596 ITA Nos.11/2008, 12/2008, 279/2010, 282/2010, 292/2010 -16- KSBC, the rental income earned from such activity be reckoned as income from the business. According to him, the said argument is without merit. That, the mere fact the assessee derives operational advantage is not the criteria for classifying the rental income as incom…

TRAVANCORE SUGARS AND CHEMICALS LTD vs. DEPUTY COMMSSR;INCOME TAX,C-I,THIRUVALLA

ITA/279/2010HC Kerala31 Mar 2022

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS,HONOURABLE MR.JUSTICE BASANT BALAJI

M/S. NEEL METAL PRODUCTS LTD.,NEW DELHI vs. ACIT, NEW DELHI

In the result, both the appeals are allowed for statistical purposes

ITA 3960/DEL/2011[2008-09]Status: DisposedITAT Delhi23 Sept 2021AY 2008-09

Bench: Shri O.P. Kant & Shri Amarjit Singh[Through Video Conferencing] Assessment Year: 2007-08

…nd marine engineers incurring capital expenditure was a plant for the purpose of the trade. 13. Mr. Rohit Arya, learned senior counsel appearing for the revenue, has drawn our attention to certain decisions reported in CIT v. National Storage (P) Ltd. (1967) 66 ITR 596 (SC) and CIT v. Kanaiyalal Nimani (1979) 120 ITR 892 (Cal). On a careful perusal of the same, we are of the considered view that it is the functional test which becomes the real criteria for treating a particular tool as plant or not. As has been indicated by their Lordships of the Apex Court, the definition of the term "plant" is of a wide magnit…

M/S NEEL METAL PRODUCTS LTD.,NEW DELHI vs. ADDL. CIT, NEW DELHI

In the result, both the appeals are allowed for statistical purposes

ITA 1368/DEL/2011[2007-08]Status: DisposedITAT Delhi23 Sept 2021AY 2007-08

Bench: Shri O.P. Kant & Shri Amarjit Singh[Through Video Conferencing] Assessment Year: 2007-08

ACIT 4(3)(1), MUMBAI vs. THE NEW PIECE GOODS BAZAR CO. LTD, MUMBAI

In the result, the Revenues’s appeal is partly allowed for statistical purposes

ITA 6496/MUM/2017[2014-15]Status: DisposedITAT Mumbai25 Sept 2020AY 2014-15

For Appellant: Ms. Kavita P. Kaushik (DR)For Respondent: Sh. B.V. Jhaveri (Adv.)

Section 143(3)Section 22Section 24

…o tax as income from house property, i.e., irrespective of the mode and manner of its realization. Ownership of house property, howsoever profitable, it was clarified in CIT vs. National Storage (P.) Ltd. [1963] 48 ITR 577, 594 (Bom) (since affirmed in [1967] 66 ITR 596 (SC)), cannot be business or trade under the Act. The amount realized by the assessee-owner is only in his capacity as the owner of the property. There is thus scope for arguing of the premium as liable for assessment as income from house property u/s. 25AA, brought on statute-book by Finance Act, 2001 w.e.f. 01.4.2002. We are conscious that this…

DCIT CEN CIR 1(2), MUMBAI vs. HIRANANDNANI PALACE GARDENS P.LTD, MUMBAI

In the result, this appeal of Revenue is dismissed

ITA 4392/MUM/2016[2008-09]Status: DisposedITAT Mumbai03 Oct 2019AY 2008-09

Bench: Shri Rajesh Kumar & Shri Ram Lal Negi

For Appellant: Shri B. Srinivas, CIT-DRFor Respondent: Shri Chetan Karia &

Section 145A

…of the assessee, business is to develop and to sell or to lease and therefore facts are clearly distinguishable. ii. In the said judgment reported in 354 ITR 180, the rejection of alternative plea by the Hon'ble Supreme Court in the case of National Storage [66 ITR 596] (SC) has not been considered. The said part of the judgment, extracted earlier shows that income cannot be partly assessed under the head ‘income from house property’ and partly under the head ‘business’. In the present case, the treatment given that if stock is sold it is assessed under the head ‘business income’ and if it is unsold it is assess…

M/S JOKHIRAM DURGADUTT,RANCHI vs. DCIT CIRCLE-1 , RNC

In the result, appeal of the assessee is dismissed

ITA 47/RAN/2018[14-15]Status: DisposedITAT Ranchi30 Aug 2019

Bench: Shri Chandra Mohan Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita No.47/Ran/2018 (नििाारण वषा / Assessment Year :2014-2015) M/S Jokhiram Durgadutt, Vs. Dcit, Circle-1, Ranchi Sarawgi House, J.J.Road, Upper Bazar, Ranchi-834001 स्थायी ऱेखा सं./ जीआइआर सं./ Pan/Gir No. : Aabfj 2200 Q (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. निर्धाऩिती की ओर से /Assessee By : Shri P.S.Paul, Ca राजस्व की ओर से /Revenue By : Shri P.K.Mondal, Addl.Cit(Dr)

For Appellant: Shri P.S.Paul, CAFor Respondent: Shri P.K.Mondal, Addl.CIT(DR)

…granted licence to run a cinema. Apart, the appellant also provided areas for vending food and other items. [8.25 At this juncture it would be relevant to discuss the judgement of the Hon'ble SC rendered in the case of CIT v National Storage (P) Ltd. [ 1967J 66 ITR 596 (SC). The facts in this case were that the assessee was promoted due to promulgation of the Cinematograph film Rules. 1948, by the Government. The rules required the distributor to store films only in godowns constructed strict!) in conformity with the specifications laid down in the Film Rules and in a place to be approved by the Chief Inspector…

M/S.OBERON EDIFICES & ESTATES P. LTD,,KOCHI vs. THE PR.CIT,, TRIVANDRUM

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 361/COCH/2017[2013-14]Status: DisposedITAT Cochin23 Jul 2018AY 2013-14

Bench: S/Shri Chandra Poojari, Am & George George K., Jm I.T.A. No. 361/Coch/2017 Assessment Year : 2013-14 M/S. Oberon Edifices & Estates Vs. The Principal Commissioner Of Pvt. Ltd., Oberon Mall, Income-Tax, Trivandrum. Nh Bye-Pass, Edapally, Kochi-682 024. [Pan:Aaaco 7942E]

Section 263

…opping facilities to customers is also a commercial activity and such activities have been held to be business activity by the Hon'ble Kolkata High Court in the case o/PFH Mall Retail Management Ltd. (supra) and in the case of CIT v. National Storage Pvt. Ltd 66 ITR 596, the Hon 'ble Supreme Court has held various services, services and facilities and other amenities as business activity. In the present case, the assessee has provided all the facilities and therefore the ratio of the decision in the case of PFH Mall Retail Management Ltd. (supra) and the decision of the Hon'ble Supreme Court in the case of CIT v.…

RAJENDRA R. CHATURVEDI,MUMBAI vs. DCIT CC 2(3), MUMBAI

The appeal of the assessee is allowed

ITA 5546/MUM/2015[2011-12]Status: DisposedITAT Mumbai02 Nov 2017AY 2011-12

Bench: Shri Joginder Singh & Shri Rajesh Kumarassessment Year: 2011-12 Shri Rajendra R. Chaturvedi, The Dcit, 4Th Floor, Shreepati Arcade, Central Circle-2(3), बनाम/ Premises No.1 & 2, Room No.803, 8Th Floor, Vs. August Kranti Marg, Old C.G.O. Annx. Bldg. Nana Chowk, Mumbai-400020 Mumbai-400036 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No.Aczpc5041Q

Section 143(2)Section 24

…आयकर अपील"य अ"धकरण, मुंबई "यायपीठ, ‘डी’ ,मुंबई। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘D’ MUMBAI "ी जो"ग"दर "संह, "या"यक सद"य एवं "ी राजेश कुमार, लेखा सद"य, के सम" Before Shri Joginder Singh, Judicial Member, and Shri Rajesh Kumar, Accountant Member Assessment Year: 2011-12 Shri Rajendra R. Chaturvedi, The DCIT, 4th Floor, Shreepati Arcade, Central Circle-2(3), बनाम/ Premises No.1 & 2, Room No.803, 8th Floor, Vs. August Kranti Marg, Old C.G.O. Annx. Bldg. Nana Chowk, Mumbai-400020 Mumbai-400036 ("नधा"रती /Assessee) (राज"व /Revenue) PAN. No.ACZPC5041Q "नधा"रती क" ओर से / Assessee by Ms. Lata Paru…

MEGA VENTURE DEVELOPERS P.LTD,MUMBAI vs. DCIT 5(2), MUMBAI

In the result, the appeal of the assessee stands allowed as indicated above

ITA 2381/MUM/2015[2011-12]Status: DisposedITAT Mumbai31 Jan 2017AY 2011-12

For Respondent: Shri T A Khan

Section 143(2)Section 143(3)

…property during the year under consideration have come primarily from exploitation of the property of the appellant , which cannot be held as business income of the appellant, in view of the decisions of the Hon’ble Apex Court in the case of National Storage 66 ITR 596 (SC) as well as in the case of M/s Shambhu Investment Pvt Ltd 116 Taxmann 795 (Cal), wherein it was held that when the primary object of the assessee is exploitation of the property by letting it out to others, then income earned will be taxable as income from house property. Income from letting out of the property can only be held as business inc…

ITO WARD-41(1), KOLKATA, KOLKATA vs. SRI SHYAMAL BANERJEE, KOLKATA

In the result, the appeal of the Revenue is dismissed

ITA 1580/KOL/2012[2003-04]Status: DisposedITAT Kolkata14 Sept 2016AY 2003-04

Bench: Shri Waseem Ahmed & Shri K. Narasimha Chary

Section 133ASection 143(3)Section 154Section 251

…uded that the income from Bani Bhawan Puri should be treated as business income. In the impugned order Learned CIT referred to all these facts and circumstances of the case. He also relied upon the decision reported in National Storage Pvt. Ltd. Vs CIT (1967) 66 ITR 596 (SC), for the principle that even rental income from property having limitation in its use is assessable as business income and not income from house property. It is pertinent to note that in this case also the use of property is burdened with conditions as could be found from the license granted by the Magistrate of the Lodging House Fund, Puri,…

ACIT CIR 12(3), MUMBAI vs. LAKE VIEW DEVELOPERS, MUMBAI

In the result, the Revenue’s appeal is allowed

ITA 4495/MUM/2013[2009-10]Status: DisposedITAT Mumbai28 Jul 2016AY 2009-10

Bench: Shri Sanjay Arora, Am & Shri Ram Lal Negi, Jm आयकर अपील सं./I.T.A. No.3409/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10) Lake View Developers Addl. Cit, Range 12(3), बनाम/ 514, Dalamal Towers, Mumbai 211 F.P.J. Marg, Nariman Point, Vs. Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafl 0589 R (Assessee) : (Revenue) & आयकर अपील सं./I.T.A. No. 4495/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10) बनाम/ Addl. Cit, Range 12(3), Lake View Developers Mumbai Mumbai-400 021 Vs. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafl 0589 R (Revenue) (Assessee) : & आयकर अपील सं./I.T.A. No. 4496/Mum/2013 ("नधा"रण वष" / Assessment Year: 2009-10) Addl. Cit, Range 12(3), Omega Associates, बनाम/ Mumbai 514, Dalamal Tower, 211-F.P.J. Marg, Nariman Point, Vs. Mumbai-400 021 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaafl 0589 R (Revenue) : (Assessee) : Shri Chetan Karia Revenue By Assessee By : Shri R. P. Rastogi सुनवाई क" तार"ख / : 03.5.2016 Date Of Hearing घोषणा क" तार"ख / : 28.7.2016 Date Of Pronouncement

For Appellant: Shri R. P. Rastogi

Section 143(3)Section 22

…erty. 6 ITA Nos. 3409, 4495 &4496/Mum/2013 (A.Y. 2009-10) Lake View Developers & Omega Associates Ownership of house property, howsoever profitable, it was clarified in CIT vs. National Storage (P.) Ltd. [1963] 48 ITR 577, 594 (Bom) (since affirmed in [1967] 66 ITR 596 (SC)), cannot be business or trade under the Act. The legal aspect of the matter is thus clear. As regards the factual aspect, the same would normally require verification and determination at the end of the assessing authority and, accordingly, a restoration back to his file for the purpose, with the onus to prove its’ claims being on the assesse…

STAR GOLD P.LTD,MUMBAI vs. DCIT 5(3), MUMBAI

In the result, the appeal filed by the assessee is partly allowed

ITA 349/MUM/2015[2008-09]Status: DisposedITAT Mumbai22 Jun 2016AY 2008-09

Bench: Shri B.R. Baskaran (Am)

…ents. He submitted that the amenities that have been claimed to have been provided is only usual one attached with every building. He submitted that the Ld CIT(A) has followed the decision rendered by the Hon’ble Supreme Court in the case of National Storate (66 ITR 596) and Shambu Investments Pvt Ltd (116 Taxmann 795) to decide this issue against the assessee. He further submitted that the principles of res- judicata shall not be applicable to Income tax proceedings and hence the view taken by the AO in AY 2009-10 to 2011-12 shall not be binding on him, particularly when he is following the decision rendered by…

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