N.V. Shanmugham v. CIT

81 ITR 310Supreme Court of India1971#7085 most cited

What is N.V. Shanmugham v. CIT authority for?

Profits earned on behalf of an association of persons (AOP) are taxable in the hands of the AOP, especially when the owners themselves would have faced chaos in their business if they claimed these profits directly.

16

judgments rely on this decision, according to BharatTax’s citation analysis of 366,406 Indian tax judgments — from 2015 to 2024.

Also referred to as

N.V. Shanmugham v. CIT · 81 ITR 310 · SC · association of persons · AOP · taxability of AOP income · business profits · income in the hands of AOP

Sections most often in play

Section 1961Section 131Section 132Section 139(1)Section 142(1)Section 143(2)Section 143(3)Section 153A
Read the full judgment

Issues it is cited on

self occupied propertysection 80lsection 23(2)section 2(31)section 23(1)interest on interestannual letting valueannual valuesection 22section 40a(3)share application moneyaddition u/s 68

Judgments citing N.V. Shanmugham v. CIT

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2776/DEL/2022[2019-20]Status: DisposedITAT Delhi20 Nov 2024AY 2019-20

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2775/DEL/2022[2018-19]Status: DisposedITAT Delhi20 Nov 2024AY 2018-19

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, New Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2774/DEL/2022[2017-18]Status: DisposedITAT Delhi20 Nov 2024AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2773/DEL/2022[2016-17]Status: DisposedITAT Delhi20 Nov 2024AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, New Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2772/DEL/2022[2015-16]Status: DisposedITAT Delhi20 Nov 2024AY 2015-16

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

The Kumar Family Trust, Delhi vs. ACIT, Center Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2771/DEL/2022[2014-15]Status: DisposedITAT Delhi20 Nov 2024AY 2014-15

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, New Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2770/DEL/2022[2013-14]Status: DisposedITAT Delhi20 Nov 2024AY 2013-14

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUDHIR KUMAR, JUDICIALMEMBER ITA Nos.2770 to 2776/DEL/2022 (Assessment Years : 2013-14 to 2019-20) The Kumar Family Trust, vs. ACIT, Central Circle 4, F – 14/15, Pushpanjali Farms, New Delhi. Dwarka Road, Bijwasan, New Delhi – 110 061. (PAN: AAATT6581H) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Akkal Dudhwewala, CA REVENUE BY : Ms. Sapna Bhatia, CIT DR Date of Hearing : 11.09.2024 Date of Order : 20.11.2024 O R D E R PER S. RIFAUR RAHMAN, AM : 1. The assessee has filed seven appeals against t…

M/S Rithwik Rk Joint Venture vs. Pr. CIT, Allahabad

In the result, both the appeals of the assessee are partly allowed

ITA 99/ALLD/2017[2012-2013]Status: DisposedITAT Allahabad26 Jul 2022AY 2012-2013

Bench: Shri.Vijay Pal Rao & Shri Ramit Kochar

For Appellant: Sh. Pawan Chakrapani, C.AFor Respondent: Sh. Ramendra Kumar Vishwakarma, CIT DR
Section 263

…s as under:- “C.I.T. Vs. Smt. Indira Balakrishanan, (1960) 39 ITR 546,551 (S.C.) C.I.T. Vs. Buldana District Main Cloth Importers Group, (1961) 42 ITR 172 (S.C.). Murugesan & Brothers Vs. C.I.T. (1973) 88 ITR 432 (S.C.). V. Shanmugam & Co. Vs. C.I.T. (1971) 81 ITR 310 (S.C.) Birla Tyres Vs. JCIT (2003) 80 TTJ 915 (Cal.-T) (T.M.)” 7. We have considered the rival submissions as well as relevant material on record. The assessee Joint Venture was formed by its two partners namely M/s Rithwik Projects Private Limited & M/s R.K. Infra & Engineering (India) Private Limited. The assessee filed its return of income de…

M/S. Rithwik Rk Joint Venture, Hyderabad vs. Principal Commissioner of Income Tax, Allahabad

In the result, both the appeals of the assessee are partly allowed

ITA 107/ALLD/2016[2011-12]Status: DisposedITAT Allahabad26 Jul 2022AY 2011-12

Bench: Shri.Vijay Pal Rao & Shri Ramit Kochar

For Appellant: Sh. Pawan Chakrapani, C.AFor Respondent: Sh. Ramendra Kumar Vishwakarma, CIT DR
Section 263

…s as under:- “C.I.T. Vs. Smt. Indira Balakrishanan, (1960) 39 ITR 546,551 (S.C.) C.I.T. Vs. Buldana District Main Cloth Importers Group, (1961) 42 ITR 172 (S.C.). Murugesan & Brothers Vs. C.I.T. (1973) 88 ITR 432 (S.C.). V. Shanmugam & Co. Vs. C.I.T. (1971) 81 ITR 310 (S.C.) Birla Tyres Vs. JCIT (2003) 80 TTJ 915 (Cal.-T) (T.M.)” 7. We have considered the rival submissions as well as relevant material on record. The assessee Joint Venture was formed by its two partners namely M/s Rithwik Projects Private Limited & M/s R.K. Infra & Engineering (India) Private Limited. The assessee filed its return of income de…

ACIT, Bangalore vs. M/S Icici Emerging Sector Fund, Bangalore

In the result, all the thirteen appeals of the revenue are dismissed

ITA 505/BANG/2013[2009-10]Status: DisposedITAT Bangalore27 Jul 2016AY 2009-10

Bench: Shri Sunil Kumar Yadav & Shri A.K.Garodia, Accounant Member

For Appellant: Shri S.E.Dastur, Senior AdvocateFor Respondent: Mrs. Neera Malhotra, CIT &
Section 199

…e business. The profits to which those owners lay claim and which they were not averse to pocked, were earned on behalf of an association of persons. Reliance is placed on the decision of the Supreme Court in the cases of N.V. Shanmugham and Co. v. CIT [1971] 81 ITR 310 (SC) and CIT v. Managing Trustees, Nagore Durgha [1965] 57 ITR 321 (SC)." 10. The Assessing Officer, for the above reasons, brought to tax the entire income in the hands of the assessee at the maximum marginal rate. 11. In the assessment year 2009-10 in the case of the assessee in I.T.A. No. 475/Bang/13, the Assessing Officer followed his reasonin…

ITO vs. Sri. N.P. Bagwa & Others

In the result, all these appeals and cross objections are allowed

ITA 1012/BANG/2013[2008-09]Status: DisposedITAT Bangalore30 Jun 2016AY 2008-09

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri S. Venkatesan, CAFor Respondent: Shri Sunil Kumar Agarwala, JCIT
Section 144

…as an assessable unit having regard to the ratio of the following decisions of the Hon'ble Supreme Court :- [1] CIT V. INDIRA BALAKRISHNAN reported in 39 ITR 546 [SC] [2] G. MURUGESAN & BROTHERS reported in 88 ITR 432 [SC] [3] N.V.SHANMUGAM & CO., reported in 81 ITR 310 [SC] [4] FAQIR CHAND GULATI V. UPPAL AGENCIES P. LTD. reported in 10 SCC 345 [2008] 3[B] The learned CIT[A] has failed to note the joint development agreement having been entered into on ITA Nos.1012-1014-13, CO Nos.5,6,& 7- 14 & 930-932-13 & 714 to 718-16 09/0612006 and the possession to the developer given on 09/06/2006 itself notwithstanding t…

ACIT vs. Icici Emerging Sector Fund

In the result, all the appeals by the revenue are dismissed

ITA 475/BANG/2013[2009-10]Status: DisposedITAT Bangalore13 Feb 2015AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2008-09

For Respondent: Shri Farahat Hussain Qureshi, CIT-II(DR)
Section 61Section 63

…e would have been chaos in the business. The profits to which those owners lay claim and which they were not averse to pocked, were earned on behalf of an AOP. Reliance is placed on the decision of the Supreme Court in the case of N.V. Shanmugam & Co. Vs. CIT 81 ITR 310 (SC) and CIT Vs. Managing Trustees Nagore Durgah 57 ITR 321 (SC).” 9. The AO, for the above reasons, brought to tax the entire income in the hands of the Assessee at the Maximum Marginal Rate. ITA Nos.347 & 348/B/11 177 & 179/B/12, & 475/B/13 Page 9 of 33 10. In AY 09-10 in the case of Assessee in ITA No.475/Bang/13, the AO followed his reasoni…

ITO, Bangalore vs. M/S India Advantage Fund I, Bangalore

In the result, all the appeals by the revenue are dismissed

ITA 179/BANG/2012[2008-09]Status: DisposedITAT Bangalore13 Feb 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2008-09

For Respondent: Shri Farahat Hussain Qureshi, CIT-II(DR)
Section 61Section 63

…e would have been chaos in the business. The profits to which those owners lay claim and which they were not averse to pocked, were earned on behalf of an AOP. Reliance is placed on the decision of the Supreme Court in the case of N.V. Shanmugam & Co. Vs. CIT 81 ITR 310 (SC) and CIT Vs. Managing Trustees Nagore Durgah 57 ITR 321 (SC).” 9. The AO, for the above reasons, brought to tax the entire income in the hands of the Assessee at the Maximum Marginal Rate. ITA Nos.347 & 348/B/11 177 & 179/B/12, & 475/B/13 Page 9 of 33 10. In AY 09-10 in the case of Assessee in ITA No.475/Bang/13, the AO followed his reasoni…

DCIT, Bangalore vs. M/S Icici Emerging Sector Fund, Bangalore

In the result, all the appeals by the revenue are dismissed

ITA 177/BANG/2012[2008-09]Status: DisposedITAT Bangalore13 Feb 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2008-09

For Respondent: Shri Farahat Hussain Qureshi, CIT-II(DR)
Section 61Section 63

…e would have been chaos in the business. The profits to which those owners lay claim and which they were not averse to pocked, were earned on behalf of an AOP. Reliance is placed on the decision of the Supreme Court in the case of N.V. Shanmugam & Co. Vs. CIT 81 ITR 310 (SC) and CIT Vs. Managing Trustees Nagore Durgah 57 ITR 321 (SC).” 9. The AO, for the above reasons, brought to tax the entire income in the hands of the Assessee at the Maximum Marginal Rate. ITA Nos.347 & 348/B/11 177 & 179/B/12, & 475/B/13 Page 9 of 33 10. In AY 09-10 in the case of Assessee in ITA No.475/Bang/13, the AO followed his reasoni…

DCIT, Bangalore vs. M/S Icici Emerging Sectors Fund, Bangalore

In the result, all the appeals by the revenue are dismissed

ITA 348/BANG/2011[2008-09]Status: DisposedITAT Bangalore13 Feb 2015AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2008-09

For Respondent: Shri Farahat Hussain Qureshi, CIT-II(DR)
Section 61Section 63

…e would have been chaos in the business. The profits to which those owners lay claim and which they were not averse to pocked, were earned on behalf of an AOP. Reliance is placed on the decision of the Supreme Court in the case of N.V. Shanmugam & Co. Vs. CIT 81 ITR 310 (SC) and CIT Vs. Managing Trustees Nagore Durgah 57 ITR 321 (SC).” 9. The AO, for the above reasons, brought to tax the entire income in the hands of the Assessee at the Maximum Marginal Rate. ITA Nos.347 & 348/B/11 177 & 179/B/12, & 475/B/13 Page 9 of 33 10. In AY 09-10 in the case of Assessee in ITA No.475/Bang/13, the AO followed his reasoni…

DCIT, Bangalore vs. M/S Icici Emerging Sectors Fund, Bangalore

In the result, all the appeals by the revenue are dismissed

ITA 347/BANG/2011[200809]Status: DisposedITAT Bangalore13 Feb 2015

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2008-09

For Respondent: Shri Farahat Hussain Qureshi, CIT-II(DR)
Section 61Section 63

…e would have been chaos in the business. The profits to which those owners lay claim and which they were not averse to pocked, were earned on behalf of an AOP. Reliance is placed on the decision of the Supreme Court in the case of N.V. Shanmugam & Co. Vs. CIT 81 ITR 310 (SC) and CIT Vs. Managing Trustees Nagore Durgah 57 ITR 321 (SC).” 9. The AO, for the above reasons, brought to tax the entire income in the hands of the Assessee at the Maximum Marginal Rate. ITA Nos.347 & 348/B/11 177 & 179/B/12, & 475/B/13 Page 9 of 33 10. In AY 09-10 in the case of Assessee in ITA No.475/Bang/13, the AO followed his reasoni…

N.V. Shanmugham v. CIT (81 ITR 310) — Cited in 16 Judgments | BharatTax