Karnani Properties Ltd. v. CIT

82 ITR 547Supreme Court of India1971#2731 most cited

What is Karnani Properties Ltd. v. CIT authority for?

Income from services rendered by an assessee to its tenants, carried on continuously in an organized manner with a view to earn profit, constitutes business income. The rule of res judicata does not apply to taxation proceedings, and the Tribunal is the final fact-finding authority.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2025.

Also referred to as

Karnani Properties Ltd v CIT · 82 ITR 547 · business income · services to tenants · profit motive · res judicata · taxation proceedings · Tribunal final fact finding · High Court reference jurisdiction · Income Tax Act.

Sections most often in play

Section 1961Section 131 of the Income Tax ActSection 133(6) of the Income Tax ActSection 250 of the Income Tax ActSection 276CC of the Income Tax ActSection 68 of the Income Tax Act
Read the full judgment

Issues it is cited on

annual valueincome from other sourcespersoncompanybusinesssection 143(3)indiatotal incomedocumentinterest

Judgments citing Karnani Properties Ltd. v. CIT

Bharat Homes Ltd., Mumbai vs. A.C.I.T. - 9(1), Mumbai

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

ITA 6792/MUM/2011[2008-09]Status: DisposedITAT Mumbai27 May 2016AY 2008-09

Bench: S/Shri B.R. Baskaran (Am) & Amit Shukla (Jm) I.T.A. No. 6792/Mum/2011 (Assessment Year 2008-09)

Section 6

…of the land. With regard to the contention that the depreciation has been allowed in AY 2006-07 and 2007-08, the Ld CIT(A) placed reliance on the decision rendered by Hon’ble Supreme 4 M/s. Bharat Homes Ltd. Court in the case of Karnani Properties Ltd (1971)(82 ITR 547 @ 554) and held that the principle of res-judicata shall not apply to income tax proceedings. The Ld CIT(A) placed reliance on the decision rendered by Hon’ble Supreme Court in the case of Saharanpur Electric Supply Company Ltd Vs. CIT (1992)(194 ITR 294), wherein it was held that the definition of Written Down Value in section 43(6) envisages com…

M/S Ganapathy & Co.Bangalore vs. Commr.Income Tax, Bangalore

The appeal is dismissed

C.A. No.-001964-001964 - 2008Supreme Court18 Jan 2016
Section 256(2)Section 35Section 40A(2)

…n in law has been consistently laid down by this Court in several of its Page 11 JUDGMENT 11 pronouncements out of which, illustratively, reference may be made to Karnani Properties Ltd. Vs. Commissioner of Income-Tax, West Bengal [82 ITR 547], Rameshwar Prasad Bagla vs. Commissioner of Income-Tax, U.P. [87 ITR 421], Commissioner of Income-Tax, Bombay City vs. Greaves Cotton and Co. Ltd. [68 ITR 200] and K. Ravindranathan Nair vs. Commissioner of Income-Tax [247 ITR 178]. 8. The legal position in this regard may be summed up by reiterating that it is the…

M/S.Hastalloy India Ltd vs. Dy Commissioner of Income Tax/Vizag

ITTA/22/2000HC Telangana16 Aug 2012

Bench: GODA RAGHURAM,M.S.RAMACHANDRA RAO

…use the hiring is inclusive of certain additional services like lighting, water supply, sanitation etc as referred to in the lease agreement with tenants noted earlier. In this regard, appellant’s reliance on the ratio of decision in Karnani Properties (82 ITR 547) was somewhat misplaced since in that case involving splitting up composite rent into property income and service charges, the question decided was that rendering of various services in an organized manner to tenants could constitute business income and not income from other sources. The services provided in the instant case were relativel…