CIT v. Shan Finance

231 ITR 308Supreme Court of India1998#1236 most cited

What is CIT v. Shan Finance authority for?

A financier owning machinery is entitled to investment allowance even if the machinery is used by its lessee for production purposes.

91

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2025.

Also referred to as

CIT v. Shan Finance · 231 ITR 308 · Supreme Court · investment allowance · machinery · lessee · financier · production

Sections most often in play

Section 142(1)Section 143(3)Section 250Section 32Section 37(1)Section 92CA(3)

Issues it is cited on

section 28(va)section 41(4)depreciation on softwaresection 2(42a)section 43(6)(c)section 32anon-compete feesection 43(6)put to useblock of assetsopening wdvsection 41(1)

Judgments citing CIT v. Shan Finance

Sbi Capital Market Limited, Mumbai vs. Addl. C.I.T. Ltu, Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 1839/MUM/2011[2007-08]Status: DisposedITAT Mumbai13 Jan 2023AY 2007-08

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

Sbi Capital Markets Ltd, Mumbai vs. ACIT Ltu, Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 5144/MUM/2009[2006-07]Status: DisposedITAT Mumbai13 Jan 2023AY 2006-07

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd, Mumbai vs. The ACIT Cir 4(2), Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 7268/MUM/2008[2003-2004]Status: DisposedITAT Mumbai13 Jan 2023AY 2003-2004

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd., Mumbai vs. DCIT Cir. 4(2), Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 2345/MUM/2007[2003-2004]Status: DisposedITAT Mumbai13 Jan 2023AY 2003-2004

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd., Mumbai vs. DCIT Cir. 4(2), Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 1088/MUM/2007[2001-2002]Status: DisposedITAT Mumbai13 Jan 2023AY 2001-2002

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd., Mumbai vs. DCIT Cir. 4(2), Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 7538/MUM/2005[1996-1997]Status: DisposedITAT Mumbai13 Jan 2023AY 1996-1997

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd., Mumbai vs. CIT (A)-IV, Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 7264/MUM/2005[2002-2003]Status: DisposedITAT Mumbai13 Jan 2023AY 2002-2003

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

DCIT Cir. 4(2), Mumbai vs. M/S. S.B.I Capital Markets Ltd., Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 6729/MUM/2004[2001-2002]Status: DisposedITAT Mumbai13 Jan 2023AY 2001-2002

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

Sbi Capital Markets Ltd., Mumbai vs. DCIT Range 4(2), Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 4248/MUM/2004[2000-01]Status: DisposedITAT Mumbai13 Jan 2023AY 2000-01

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

Sbi Capital Markets Ltd., Mumbai vs. JCIT Special Range, Mumbai

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 4246/MUM/2004[98-99]Status: DisposedITAT Mumbai13 Jan 2023

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd vs. The Jt CIT Sr-27

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 3791/MUM/2004[1997-1998]Status: DisposedITAT Mumbai13 Jan 2023AY 1997-1998

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

M/S. Sbi Capital Markets Ltd vs. The ACIT RG-4(3)(3)

In the result the, all the appeals of the assesse are partly allowed and the appeal of the revenue is dismissed

ITA 3790/MUM/2004[1996-1997]Status: DisposedITAT Mumbai13 Jan 2023AY 1996-1997

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singh, Accountant, Member Ita No.3790 /Mum/2004 (A.Y.1996-97)

…SBI Capital Market Ltd. Vs. ACIT,Range 4(3)(3) ld. Counsel has also placed reliance on the decision of Hon’ble Supreme Court in the case of I.C.D.S Vs. CIT (2013) 29 taxman.com 129 (SC) and decision of Hon’ble Supreme Court in the case of CIT Vs. Shan Finance 231 ITR 308 (SC). The ld. Counsel has also referred various other judicial pronouncements as placed in the paper book. On the other hand, the ld. D.R referred the various pages of agreement. He also referred the clause 3.1 of the agreement stating that the Lessor at its discretion on the request of the lessee, make advance payment to the manufacturer/supplie…

Deputy Commissioner of Income Tax, Circle -Tinsukia, Tinsukia vs. Krishna Borthakur, L/R of Late Kamakhya Borthakur, Tinsukia

In the result, the appeal of the Revenue is partly allowed

ITA 456/GTY/2013[2010-11]Status: DisposedITAT Guwahati21 Dec 2022AY 2010-11

Bench: Shri Rajpal Yadav, Vice-(Kz) & Dr. Manish Borad

Section 143(2)Section 271(1)(c)Section 68

…ng of Cranes and consequently, I have no hesitation in holding that the higher rate of depreciation @ 30% is admissible in respect of Cranes in the instant case. My above view finds support from the decision in the case of CIT v. Shaan Finance (P) Ltd. (1998) 231 ITR 308 (SC) and CIT v. M.G.F. (India) Ltd. (2006) 285 ITR 142 (Delhi). The Hon'ble Delhi High Court has in the case of MGF (India) Ltd. (supra) has held, "the vehicles which were subject matter of the lease agreement were in fact given by the 10 Assessment Year: 2010-2011 Sri Kamakhya Borthakur, Tinsukia assessee to third parties. To this extent, the…

Alta Leasing & Finance Limited, Mumbai vs. Dy CIT Circle 6 (1), Mumbai

In the result the appeal of the revenue stand dismissed

ITA 801/MUM/2003[1996-97]Status: DisposedITAT Mumbai27 Sept 2022AY 1996-97

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

…sion of jurisdictional High Court of Bombay in the case of Prakash Industries Ltd. held that the lessor bank was the owner of the leased assets. The asessee has also placed reliance on the decision of the Supreme Court in the case of Shaan Finance Pvt. Ltd. ( 231 ITR 308) where the Hon’ble Supreme Court held that a leasing company whose business consists of hiring out machinery was entitled to investment allowance u/s 32A of the Income Tax Act. The ld. CIT(A) has also given reference of other decision relied upon by the assessee i.e in the case of United Technologies Ltd. ( 73 ITD 150) Micro Land Ltd. (61 ITD 446…

DCIT, Cir 6(1), Mumbai vs. Alta Leasing & Finance Ltd, Mumbai

In the result the appeal of the revenue stand dismissed

ITA 1806/MUM/2003[1996-97]Status: DisposedITAT Mumbai27 Sept 2022AY 1996-97

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

…sion of jurisdictional High Court of Bombay in the case of Prakash Industries Ltd. held that the lessor bank was the owner of the leased assets. The asessee has also placed reliance on the decision of the Supreme Court in the case of Shaan Finance Pvt. Ltd. ( 231 ITR 308) where the Hon’ble Supreme Court held that a leasing company whose business consists of hiring out machinery was entitled to investment allowance u/s 32A of the Income Tax Act. The ld. CIT(A) has also given reference of other decision relied upon by the assessee i.e in the case of United Technologies Ltd. ( 73 ITD 150) Micro Land Ltd. (61 ITD 446…

DCIT.Cir.6 (1), Mumbai vs. M/S Alta Leasing & Finance Ltd, Mumbai

In the result the appeal of the revenue stand dismissed

ITA 3686/MUM/2002[1997-98]Status: DisposedITAT Mumbai27 Sept 2022AY 1997-98

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

…sion of jurisdictional High Court of Bombay in the case of Prakash Industries Ltd. held that the lessor bank was the owner of the leased assets. The asessee has also placed reliance on the decision of the Supreme Court in the case of Shaan Finance Pvt. Ltd. ( 231 ITR 308) where the Hon’ble Supreme Court held that a leasing company whose business consists of hiring out machinery was entitled to investment allowance u/s 32A of the Income Tax Act. The ld. CIT(A) has also given reference of other decision relied upon by the assessee i.e in the case of United Technologies Ltd. ( 73 ITD 150) Micro Land Ltd. (61 ITD 446…

Alta Leasing & Finance Ltd, Mumbai vs. Addl, CIT Cent. Cir 6(1), Mumbai

In the result the appeal of the revenue stand dismissed

ITA 3634/MUM/2002[1998-99]Status: DisposedITAT Mumbai27 Sept 2022AY 1998-99

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

…sion of jurisdictional High Court of Bombay in the case of Prakash Industries Ltd. held that the lessor bank was the owner of the leased assets. The asessee has also placed reliance on the decision of the Supreme Court in the case of Shaan Finance Pvt. Ltd. ( 231 ITR 308) where the Hon’ble Supreme Court held that a leasing company whose business consists of hiring out machinery was entitled to investment allowance u/s 32A of the Income Tax Act. The ld. CIT(A) has also given reference of other decision relied upon by the assessee i.e in the case of United Technologies Ltd. ( 73 ITD 150) Micro Land Ltd. (61 ITD 446…

Alta Leasing & Finance Ltd, Mumbai vs. Jt CIT Spl RG 17, Mumbai

In the result the appeal of the revenue stand dismissed

ITA 3633/MUM/2002[1997-98]Status: DisposedITAT Mumbai27 Sept 2022AY 1997-98

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

…sion of jurisdictional High Court of Bombay in the case of Prakash Industries Ltd. held that the lessor bank was the owner of the leased assets. The asessee has also placed reliance on the decision of the Supreme Court in the case of Shaan Finance Pvt. Ltd. ( 231 ITR 308) where the Hon’ble Supreme Court held that a leasing company whose business consists of hiring out machinery was entitled to investment allowance u/s 32A of the Income Tax Act. The ld. CIT(A) has also given reference of other decision relied upon by the assessee i.e in the case of United Technologies Ltd. ( 73 ITD 150) Micro Land Ltd. (61 ITD 446…

The Jt. Comm of Income Tax (OSD) Cent .Cir-6(4), Mumbai vs. M/S D''Decor Properties LLP, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 1743/MUM/2021[2018-19]Status: DisposedITAT Mumbai27 May 2022AY 2018-19

Bench: This Extended Date, Accordingly, We Hold That There Is No Delay In Filing Of Appeal By The Revenue.

Section 132(1)Section 143(2)Section 143(3)

…has carried out the business activity during the year and for part of the expenses the assessee had not carried out any business activity during the year. 3.7. We find that the Hon‟ble Supreme Court in the case of CIT vs. Shaan Finance Pvt. Ltd., reported in 231 ITR 308 on the allowability of investment allowance u/s 32A(1) of the Act in respect of leaing of machines had held that when the business of the assessee itself is leasing 9 M/s. D’décor Properties LLP of machines, the machines so leased out are being used for the purpose of assessee‟s business and hence, the income by way of hire charges which that a…

Shri Anil Nanda, New Delhi vs. DCIT, New Delhi

In the result, the appeal filed by the assessee is dismissed

ITA 3318/DEL/2017[2007-08]Status: DisposedITAT Delhi18 Aug 2021AY 2007-08

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2007-08 Anil Nanda, Vs Dcit, 12-C, Friends Colony, Circle-68(1), New Delhi. New Delhi. Pan Aafpn4381A (Appellant) (Respondent) Assessee By : Shri Deepak Ostwal, Ca Revenue By : Shri Satpal Gulati, Cit, Dr Date Of Hearing : 02.06.2021 Date Of Pronouncement : 18.08.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 31St March, 2017 Of The Cit(A)-32, New Delhi Relating To Assessment Year 2007-08. 2. Facts Of The Case, In Brief, Are That The Assessee Is An Individual & It Filed Its Return Of Income On 30Th July, 2007 Declaring Total Income At Rs.8,25,64,675/-. The Assessment Was Completed U/S 143(3) Of The Act On 30Th October, 2009 Accepting The Returned Income. Subsequently, The Ao Reopened The Assessment U/S 147 Of The It Act, 1961 After Recording The Following Reasons:-

For Appellant: Shri Deepak Ostwal, CAFor Respondent: Shri Satpal Gulati, CIT, DR
Section 143(3)Section 147Section 148Section 151Section 2(22)(e)Section 246

…1086 treated as loan 4 CIT vs Atul Engineering Allahabad Deposit is different from loan 2nd 43-47 Udyog ITA No.223 of 2011 High Court and advances Las Date of order- 26/09/201.4 . 5 CIT vs Shaan Finance (P) Ltd Supreme Term "Deposit "is different 48-53 (1998) 231 ITR 308(SC) Date Court of of order 20/03/1998 ________ India 6 Nandlal Kanoria vs CIT Calcutta 54-61 Equivalent citationsl980 122 High Court ITR 405 Cal Date of order- 29/03/1979 7 Seamist Properties Pvt. Ltd. vs ITAT, Which material fact were not 62-67 21 Ito (2005) 95 TTJ Mum 201 MUMBAI discussed by assesse 8 CIT vs Gupta Abhushan Pvt. Delhi High Mere…