Karanpura Development Co. Ltd. v. CIT

44 ITR 362Supreme Court of India1962#625 most cited

What is Karanpura Development Co. Ltd. v. CIT authority for?

The income derived from letting out assets, such as coal mining leases, constitutes "profits and gains of business or profession" if the primary object and activity of the assessee company are to acquire, develop, and sub-lease such assets. This classification holds even if the income arises from letting, provided the letting itself constitutes the assessee's business.

157

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2009 to 2025.

Also referred to as

Karanpura Development Co. Ltd. v. CIT · income classification · business income · letting out assets as business · profits and gains of business · coal mining leases · Section 22 · Section 24 · income from business or profession · heads of income

Sections most often in play

Section 143(3)Section 143(2)Section 115BBESection 133ASection 143(1)Section 68Section 69ASection 139
Read the full judgment

Issues it is cited on

section 24(a)annual valueannual letting valuehouse property incomesection 22profits and gains of business or professionrule of consistencysection 69bsection 24income from other sourcesaddition u/s 68liable to tax

Judgments citing Karanpura Development Co. Ltd. v. CIT

Tulsidas V. Patel Pvt Ltd, Mumbai vs. Dy. Commissioner of Income Tax 5(3)(2), Mumbai

ITA 556/MUM/2023[2012-2013]Status: DisposedITAT Mumbai11 Aug 2023AY 2012-2013
For Appellant: Shri Prakash K. JotwaniFor Respondent: Ms. Richa Gulati
Section 143(3)(ii)Section 234B

…ion 9. The character of that income is not altered because it is received by a company formed with the object of developing and setting up markets." (Emphasis Supplied) 6.3. In the case of Karanpura Development Co. Ltd. Vs. Commissioner of Income Tax: [1962] 44 ITR 362 (SC) the issue before the Hon‟ble Supreme Court was whether on the facts and in the circumstances of the case, the sums received as salami by the assessee for granting sub-leases were trading receipts in its hands. The contention of the assessee was that the assessee- company was holding its capital asset, namely, the mining leases, through its su…

Dristi Textiles Pvt. Ltd., Ghaziabad vs. ITO, Ward- 1(2), Ghaziabad

Appeal of the assessee is allowed

ITA 912/DEL/2019[2014-15]Status: DisposedITAT Delhi03 Aug 2023AY 2014-15

Bench: Shri Narendra Kumar Billaiya & Shri Anubhav Sharma

Section 143(3)Section 145Section 68

…n remove the ways to find the real nature of transaction and colorable devices cannot be permitted to be a part of tax planning. The substance of transaction should prevail over its form, has been held in the case of Karanpura Development Co. Ltd. vs. CIT(SC) 44 ITR 362.” 4. Heard and perused the record. 5. Learned AR submitted that addition on the basis of net profit is beyond the provisions of Section 68 of the Act. It was submitted that without invoking the provisions of Section 145(3) or 144 of the Act no addition on the basis of net profit could be made. It was specifically pointed out that case of M/s Sybl…

DCIT Central Circle-2(4), Mumbai vs. Rustomjee Evershine Joint Venture, Mumbai

In the result, the appeals filed by the revenue for AY 2013-14 &

ITA 1825/MUM/2022[2014-15]Status: DisposedITAT Mumbai31 Jul 2023AY 2014-15

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. Cross Objection No. 27/Mum/2023 Arising Out Of I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Rustomjee Evershine Joint बिधम/ Dcit, Central Circle-2(4) Room No. 802, 8Th Floor, Venture Vs. Global City, Narangi Prathishtha Bhavan, M. K. Bypass Road, Close To Viva Road, Churchgate, College, Virar (W), Virar- Mumbai-400020. 401303. आयकर अपील सं/ I.T.A. Nos.1824 & 1825/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2016-17 & 2014-15) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar7687M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Naresh Kumar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 25/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/07/2023

For Appellant: Shri Naresh KumarFor Respondent: Shri P. D. Chougule (Addl. CIT)

…be treated as “business income” because the assessee is having a business of renting his property and the rent which he receives is in the nature of business income. It is noted that the Hon’ble Supreme Court in the case of Karanpura Development Ltd Vs. CIT (44 ITR 362) also emphasized this ratio and held that in order to ascertain the nature of the income (whether rent received from house property is to be assessed under the head “income from house property or business”) it has to be seen whether letting or sub-letting is part of a trading operation. The Hon’ble Supreme Court in the case of M/s. Rayala Corporat…

DCIT Central Circle-2(4), Mumbai vs. Rustomjee Evershine Joint Venture, Mumbai

In the result, the appeals filed by the revenue for AY 2013-14 &

ITA 1824/MUM/2022[2016-17]Status: DisposedITAT Mumbai31 Jul 2023AY 2016-17

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. Cross Objection No. 27/Mum/2023 Arising Out Of I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Rustomjee Evershine Joint बिधम/ Dcit, Central Circle-2(4) Room No. 802, 8Th Floor, Venture Vs. Global City, Narangi Prathishtha Bhavan, M. K. Bypass Road, Close To Viva Road, Churchgate, College, Virar (W), Virar- Mumbai-400020. 401303. आयकर अपील सं/ I.T.A. Nos.1824 & 1825/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2016-17 & 2014-15) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar7687M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Naresh Kumar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 25/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/07/2023

For Appellant: Shri Naresh KumarFor Respondent: Shri P. D. Chougule (Addl. CIT)

…be treated as “business income” because the assessee is having a business of renting his property and the rent which he receives is in the nature of business income. It is noted that the Hon’ble Supreme Court in the case of Karanpura Development Ltd Vs. CIT (44 ITR 362) also emphasized this ratio and held that in order to ascertain the nature of the income (whether rent received from house property is to be assessed under the head “income from house property or business”) it has to be seen whether letting or sub-letting is part of a trading operation. The Hon’ble Supreme Court in the case of M/s. Rayala Corporat…

DCIT Central Circel-2(4), Mumbai vs. Rustomji Evershine Joint Venture, Mumbai

In the result, the appeals filed by the revenue for AY 2013-14 &

ITA 1349/MUM/2022[2013-2014]Status: DisposedITAT Mumbai31 Jul 2023AY 2013-2014

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. Cross Objection No. 27/Mum/2023 Arising Out Of I.T.A. No.1349/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2013-14) Rustomjee Evershine Joint बिधम/ Dcit, Central Circle-2(4) Room No. 802, 8Th Floor, Venture Vs. Global City, Narangi Prathishtha Bhavan, M. K. Bypass Road, Close To Viva Road, Churchgate, College, Virar (W), Virar- Mumbai-400020. 401303. आयकर अपील सं/ I.T.A. Nos.1824 & 1825/Mum/2022 (निर्धारण वर्ा / Assessment Years: 2016-17 & 2014-15) Dcit, Central Circle-2(4) बिधम/ Rustomjee Evershine Room No. 802, 8Th Floor, Joint Venture Vs. Prathishtha Bhavan, M. K. Global City, Narangi Road, Churchgate, Mumbai- Bypass Road, Close To 400020. Viva College, Virar (W), Virar-401303. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaaar7687M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Naresh Kumar Revenue By: Shri P. D. Chougule (Addl. Cit) सुनवाई की तारीख / Date Of Hearing: 25/05/2023 घोषणा की तारीख /Date Of Pronouncement: 31/07/2023

For Appellant: Shri Naresh KumarFor Respondent: Shri P. D. Chougule (Addl. CIT)

…be treated as “business income” because the assessee is having a business of renting his property and the rent which he receives is in the nature of business income. It is noted that the Hon’ble Supreme Court in the case of Karanpura Development Ltd Vs. CIT (44 ITR 362) also emphasized this ratio and held that in order to ascertain the nature of the income (whether rent received from house property is to be assessed under the head “income from house property or business”) it has to be seen whether letting or sub-letting is part of a trading operation. The Hon’ble Supreme Court in the case of M/s. Rayala Corporat…

The Asstt. Commissioner of Income Tax, Circle -3, Srinagar vs. M/S Jyoti Limited, Srinagar

In the result, the appeal of the revenue bearing ITA No

ITA 612/ASR/2017[2014-15]Status: DisposedITAT Amritsar24 Feb 2023AY 2014-15

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 143(3)Section 24Section 250

…as from the house property, had not altered, because itwas received by the company formed with the object of developing and setting up of properties. Discussing the decision of the Hon’ble Supreme Court in the case of ‘Karanpura Development Co. Ltd. vs. CIT’, 44 ITR 362 (SC), their Lordships observed that that was also a case where theassessee company was formed with the object, inter-alia of acquiringand disposing of the underground coal mining rights in coal fields and ithad restricted its I.T.A. No.612/Asr/2017 10 Assessment Year: 2014-15 activities to acquiring coal mining leases over hugeareas, developing…

The Income Tax Officer, Ward-1 (1) (3), Rajkot vs. M/S. Tirupati Agencies, Rajkot

Appeals are dismissed

ITA 365/RJT/2018[2011-12]Status: DisposedITAT Rajkot22 Feb 2023AY 2011-12

Bench: Smt.Annapurna Gupta & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 362 To 365/Rjt/2018 ("नधा"रण वष" / Assessment Years : 2008-09 To 2011-12) Income-Tax Officer M/S. Tirupati Agencies बनाम/ Ward-1(1)(3), Rajkot Prasang Commercial Vs. Complex, Nr. Chitralekha Apartment, 150 Ft. Ring Road, Rajkot "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacft0834H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से /Appellant By : Shri Shramdeep Sinha, Cit. D.R. ""यथ" क" ओर से / Shri Mehul Ranpura, A.R. Respondent By : सुनवाई क" तार"ख / Date Of 12/12/2022 Hearing घोषणा क" तार"ख /Date Of 22/02/2023 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: All Four Appeals At The Instance Of The Revenue Are Directed Against The Orders All Dated 05.07.2018 Passed By The Passed By The Commissioner Of Income Tax (Appeals) – 1, Rajkot (The Cit(A)), Arising Out Of The Assessment Orders All Dated 29.03.2016 Passed By The Learned Ito, Ward 1(1)(3), Rajkot Under Section

For Appellant: Shri Shramdeep Sinha, CIT. D.R
Section 132Section 143(1)Section 147Section 153Section 153A

…efer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' [44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal ITA Nos. 362 to 365/Rjt/2018 ITO vs. M/s. Tirupati Agencies - 6- mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leases over large area…

The Income Tax Officer, Ward-1 (1) (3), Rajkot vs. M/S. Tirupati Agencies, Rajkot

Appeals are dismissed

ITA 364/RJT/2018[2010-11]Status: DisposedITAT Rajkot22 Feb 2023AY 2010-11

Bench: Smt.Annapurna Gupta & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 362 To 365/Rjt/2018 ("नधा"रण वष" / Assessment Years : 2008-09 To 2011-12) Income-Tax Officer M/S. Tirupati Agencies बनाम/ Ward-1(1)(3), Rajkot Prasang Commercial Vs. Complex, Nr. Chitralekha Apartment, 150 Ft. Ring Road, Rajkot "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacft0834H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से /Appellant By : Shri Shramdeep Sinha, Cit. D.R. ""यथ" क" ओर से / Shri Mehul Ranpura, A.R. Respondent By : सुनवाई क" तार"ख / Date Of 12/12/2022 Hearing घोषणा क" तार"ख /Date Of 22/02/2023 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: All Four Appeals At The Instance Of The Revenue Are Directed Against The Orders All Dated 05.07.2018 Passed By The Passed By The Commissioner Of Income Tax (Appeals) – 1, Rajkot (The Cit(A)), Arising Out Of The Assessment Orders All Dated 29.03.2016 Passed By The Learned Ito, Ward 1(1)(3), Rajkot Under Section

For Appellant: Shri Shramdeep Sinha, CIT. D.R
Section 132Section 143(1)Section 147Section 153Section 153A

…efer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' [44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal ITA Nos. 362 to 365/Rjt/2018 ITO vs. M/s. Tirupati Agencies - 6- mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leases over large area…

The Income Tax Officer, Ward-1 (1) (3), Rajkot vs. M/S. Tirupati Agencies, Rajkot

Appeals are dismissed

ITA 363/RJT/2018[2009-10]Status: DisposedITAT Rajkot22 Feb 2023AY 2009-10

Bench: Smt.Annapurna Gupta & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 362 To 365/Rjt/2018 ("नधा"रण वष" / Assessment Years : 2008-09 To 2011-12) Income-Tax Officer M/S. Tirupati Agencies बनाम/ Ward-1(1)(3), Rajkot Prasang Commercial Vs. Complex, Nr. Chitralekha Apartment, 150 Ft. Ring Road, Rajkot "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacft0834H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से /Appellant By : Shri Shramdeep Sinha, Cit. D.R. ""यथ" क" ओर से / Shri Mehul Ranpura, A.R. Respondent By : सुनवाई क" तार"ख / Date Of 12/12/2022 Hearing घोषणा क" तार"ख /Date Of 22/02/2023 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: All Four Appeals At The Instance Of The Revenue Are Directed Against The Orders All Dated 05.07.2018 Passed By The Passed By The Commissioner Of Income Tax (Appeals) – 1, Rajkot (The Cit(A)), Arising Out Of The Assessment Orders All Dated 29.03.2016 Passed By The Learned Ito, Ward 1(1)(3), Rajkot Under Section

For Appellant: Shri Shramdeep Sinha, CIT. D.R
Section 132Section 143(1)Section 147Section 153Section 153A

…efer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' [44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal ITA Nos. 362 to 365/Rjt/2018 ITO vs. M/s. Tirupati Agencies - 6- mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leases over large area…

The Income Tax Officer, Ward-1 (1) (3), Rajkot vs. M/S. Tirupati Agencies, Rajkot

Appeals are dismissed

ITA 362/RJT/2018[2008-09]Status: DisposedITAT Rajkot22 Feb 2023AY 2008-09

Bench: Smt.Annapurna Gupta & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 362 To 365/Rjt/2018 ("नधा"रण वष" / Assessment Years : 2008-09 To 2011-12) Income-Tax Officer M/S. Tirupati Agencies बनाम/ Ward-1(1)(3), Rajkot Prasang Commercial Vs. Complex, Nr. Chitralekha Apartment, 150 Ft. Ring Road, Rajkot "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aacft0834H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से /Appellant By : Shri Shramdeep Sinha, Cit. D.R. ""यथ" क" ओर से / Shri Mehul Ranpura, A.R. Respondent By : सुनवाई क" तार"ख / Date Of 12/12/2022 Hearing घोषणा क" तार"ख /Date Of 22/02/2023 Pronouncement O R D E R Per Ms. Madhumita Roy - Jm: All Four Appeals At The Instance Of The Revenue Are Directed Against The Orders All Dated 05.07.2018 Passed By The Passed By The Commissioner Of Income Tax (Appeals) – 1, Rajkot (The Cit(A)), Arising Out Of The Assessment Orders All Dated 29.03.2016 Passed By The Learned Ito, Ward 1(1)(3), Rajkot Under Section

For Appellant: Shri Shramdeep Sinha, CIT. D.R
Section 132Section 143(1)Section 147Section 153Section 153A

…efer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' [44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal ITA Nos. 362 to 365/Rjt/2018 ITO vs. M/s. Tirupati Agencies - 6- mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leases over large area…

Rvm Education (P) Ltd, New Delhi vs. ACIT Circle- 20(2), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 6067/DEL/2019[2016-17]Status: DisposedITAT Delhi06 Feb 2023AY 2016-17

Bench: Sh. N. K. Billaiya & Ms. Astha Chandraassessment Year: 2016-17

Section 24

…rved as under :- 8. Before we refer to the Constitution Bench judgment in the case of Sultan Brothers (P.) Ltd., we would be well advised to discuss the law laid down authoritatively and succinctly by this court in Karanpura Development Co. Ltd. v. CIT [1962] 44 ITR 362 (SC). That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leases over large areas, developing them as coal fields and then sub-leasing them to coll…

ACIT Circle-52(1), New Delhi vs. Renkon Partners, New Delhi

In the result, the appeal filed by the Revenue Department

ITA 4964/DEL/2019[2012-13]Status: DisposedITAT Delhi30 Jan 2023AY 2012-13

Bench: Shri N.K. Choudhry & Dr. B.R.R. Kumarassessment Year: 2012-13 Acit, Circle 52(1), Versus Renkon Partners, Dlf Centre, 9Th Floor, Sansad New Delhi. Marg, New Delhi Pan: Aaffr2063P (Appellant) (Respondent)

For Appellant: Sh. S.L. Verma, Ld. Sr. DRFor Respondent: Sh. Satyajit Goyal, Ld. CA
Section 22Section 24Section 250(6)Section 271

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’ NEW DLEHI BEFORE SHRI N.K. CHOUDHRY, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER Assessment Year: 2012-13 ACIT, Circle 52(1), VersuS Renkon Partners, DLF Centre, 9th Floor, Sansad New Delhi. Marg, New Delhi PAN: AAFFR2063P (Appellant) (Respondent) Appellant by : Sh. S.L. Verma, Ld. Sr. DR Respondent by : Sh. Satyajit Goyal, Ld. CA Date of hearing: 18.01.2023 Date of order : 30.01.2023 ORDER PER N.K. CHOUDHRY, J.M. This appeal has been preferred by the Revenue Department against the order dated 01.03.2019, impugned herein, passed by the learned…

ACIT, Circle- 26(2), Delhi vs. Vic Enterprises Pvt. Ltd., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 7103/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Jan 2023AY 2014-15

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2014-15

For Appellant: Shri M.P. Rastogi, CAFor Respondent: Shri Vivek Vardhan, Sr. DR
Section 10(38)Section 143(1)Section 143(3)Section 2(14)

…ed by the special auditor. • Certain Shares are held as investment to get tax exemption u/s. 10(38) . 10.2 The AO relied on the following case laws: • CIT vs. Associated Industrial Development Co . Ltd. 82 ITR 586 (Se) • Karampura Development Co. Ltd. Vs. CIT 44 ITR 362 (Se) • Dalmiya cements Ltd. vs. CIT 12 ITR 50 (Patna) • CIT vs. British Paints 188 ITR 44, 49 (SC) . 11.1 The main contentions o f the AR as gathered from the various submissions made are as under: • Shares of Dabur India Ltd. have been held as investment is by the assessee as a promoter for controlling interest for over two decades . This positio…

Chhattisgarh State Warehousing Corporation, Raipur vs. Assistant Commssioner of Income Tax, Circle 1(3), Raipur

In the result, appeal of the assessee is allowed in terms of our aforesaid observations

ITA 68/RPR/2019[2014-15]Status: DisposedITAT Raipur22 Dec 2022AY 2014-15

Bench: Shri Ravish Sood & Shri G D Padmahshaliआयकर अपील सं./ Ita No. 68/Rpr/2019 "नधा"रण वष" / Assessment Year : 2014-15 Chhattisgarh State Warehousing Corporation Head Office, Village-Jhanjh, Sector-24, Atal Nagar, Raipur (C.G.) Pan:Aaccc1774E .......अपीलाथ" / Appellant बनाम / V/S. The Assistant Commissioner Of Income Tax-1(3). Raipur (C.G.) ……""यथ" / Respondent

For Appellant: Shri Abhishek Mahawar, CAFor Respondent: Shri P.K Mishra, CIT-DR
Section 143(2)Section 143(3)Section 263

…efer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' [44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leases over large areas, developing them as coal fields and then sub-leasing them to col…

Deputy Commissioner of Income Tax -3 (1), Indore vs. M/S M.P. Entertainment and Developers Private Limited, Indore

ITA 203/IND/2018[2014-15]Status: DisposedITAT Indore21 Nov 2022AY 2014-15

Bench: Ms. Madhumita Roy & Shri Bhagirath Mal Biyani

For Appellant: Shri Anil Kamal Garg & Arpit GaurFor Respondent: Shri P.K. Mitra, CIT-DR
Section 139(4)Section 143(3)Section 22Section 23Section 28

…fer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and; succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' (44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leads over large areas developing them as coalfields and then sub-leasing them to collie…

The DCIT-3(1), Indore vs. M/S. M.P. Entertainment & Developers Pvt. Ltd., Indore

ITA 344/IND/2017[2013-14]Status: DisposedITAT Indore21 Nov 2022AY 2013-14

Bench: Ms. Madhumita Roy & Shri Bhagirath Mal Biyani

For Appellant: Shri Anil Kamal Garg & Arpit GaurFor Respondent: Shri P.K. Mitra, CIT-DR
Section 139(4)Section 143(3)Section 22Section 23Section 28

…fer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and; succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' (44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leads over large areas developing them as coalfields and then sub-leasing them to collie…

The DCIT-3(1), Indore vs. M/S. M.P. Entertainment & Developers Pvt. Ltd., Indore

ITA 118/IND/2017[2012-13]Status: DisposedITAT Indore21 Nov 2022AY 2012-13

Bench: Ms. Madhumita Roy & Shri Bhagirath Mal Biyani

For Appellant: Shri Anil Kamal Garg & Arpit GaurFor Respondent: Shri P.K. Mitra, CIT-DR
Section 139(4)Section 143(3)Section 22Section 23Section 28

…fer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and; succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' (44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leads over large areas developing them as coalfields and then sub-leasing them to collie…

The DCIT-3(1), Indore vs. M/S. M.P. Entertainment & Developers Pvt. Ltd., Indore

ITA 117/IND/2017[2011-12]Status: DisposedITAT Indore21 Nov 2022AY 2011-12

Bench: Ms. Madhumita Roy & Shri Bhagirath Mal Biyani

For Appellant: Shri Anil Kamal Garg & Arpit GaurFor Respondent: Shri P.K. Mitra, CIT-DR
Section 139(4)Section 143(3)Section 22Section 23Section 28

…fer to the Constitution Bench judgment in the case of Sultan Brothers (P) Ltd., we would be well advised to discuss the law laid down authoritatively and; succinctly by this Court in 'Karanpura Development Co. Ltd. v. Commissioner of Income Tax, West Bengal' (44 ITR 362 (SC)]. That was also a case where the company, which was the assessee, was formed with the object, inter alia, of acquiring and disposing of the underground coal mining rights in certain coal fields and it had restricted its activities to acquiring coal mining leads over large areas developing them as coalfields and then sub-leasing them to collie…

Rekha Shekhawat, Kota vs. Pr.CIT, Udaipur

In the result, the appeal of the assessee is allowed

ITA 7/JPR/2021[2017-18]Status: DisposedITAT Jaipur16 Aug 2022AY 2017-18
For Appellant: Shri Mahendra Gargieya, AdvocateFor Respondent: Shri Sanajy Dhariwal, CIT
Section 115BSection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 263Section 271A

…ncome has to be assessed under the residuary head of income i.e. item F of S. 14. Therefore, income added u/s 68 or 69 etc. has to be given a specific head in terms of S. 14, 4.3 The Hon'ble Supreme Court in case of Karanpura Development Co Ltd vs. CIT [1962] 44 ITR 362 (SC) held that these heads are in a sense exclusive to one another and income which falls within one head cannot be brought to tax under another head. Further, the Hon'ble Supreme Court in case of Nalinikant Ambalal Mody v CIT [1966] 61 ITR 428, has held that whether an income falls under one head or another is to be decided according to the commo…

M/S. Embassy Knowledge Infrastructure Projects Private Limited, Bangalore vs. The Assistant Commissioner of Income Tax, Circle - 2(1)(2), Bangalore

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

ITA 982/BANG/2019[2014-15]Status: DisposedITAT Bangalore15 Jun 2022AY 2014-15

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Sandeep Chalapathy, CAFor Respondent: Sri.Sanjay Kumar S.R., CIT –DR
Section 143(2)Section 24Section 3

…he proposition that the income from letting out of properties are carried out as business and not enjoying as a mere land owner to earn rental income therefore, the rental income has to be assessed as "Business income". a Karanpura Development Co. Ltd v. CIT 44 ITR 362 (SC) [Pg No. 121ofPB) 11 ITA No.982/Bang/2019. M/s.Embassy Knowledge Infrastructure Projects Pvt.Ltd. b.CIT v. Velankani Information Systems Ltd 35 Taxmann.com 1 (Kar) [Para 26 - Pg No. 136 and 137 of PB) 2.1.12. We further rely on the following decisions of the Hon'ble Karnataka High Court wherein it was held that the activity of developing, op…