New Savan Sugar & Gur Refining Co. Ltd. v. CIT

74 ITR 7Supreme Court of India1969#9874 most cited

What is New Savan Sugar & Gur Refining Co. Ltd. v. CIT authority for?

Income arising from the leasing of factory buildings and plant/machinery used for commercial exploitation is considered business income.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2017 to 2022.

Also referred to as

New Savan Sugar & Gur Refining Co. Ltd. v. CIT · 74 ITR 7 · business income · rental income · factory building · plant and machinery · commercial exploitation · income from other sources · lease rental

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Judgments citing New Savan Sugar & Gur Refining Co. Ltd. v. CIT

Rakesh Vaid, New Delhi vs. ITO Ward - 62(2), New Delhi

In the result, assessee’s appeal, ITA no

ITA 7821/DEL/2019[2010-11]Status: DisposedITAT Delhi08 Apr 2022AY 2010-11

Bench: Shri Kul Bharat[Assessment Year: 2010-11]

Section 145(3)Section 147Section 148Section 151

…Act, Reliance is placed on the following decisions: (i) 95 ITR 664 Jamshedpur Motor Accessories Stores vs. CIT Bihar & Orissa (ii) (3 ITC 219) Indian Turpentine & Rosin co Ltd. Vs. CIT United Provinces. (iii) 42 ITR 392 (SC) Senariram Doongarmal vs. CIT (iv) 74 ITR 7 (SC) New Savan Sugar & Gur Refining Co. Ltd. 2 Finding of AO in remand proceeding Issue: Purchase invoices - That during the course of remand In the additional evidence submitted by the proceedings assessee submitted following 17 Rakesh Vaid Vs. ITO assessee, he was furnished copies of some of details: the bills/invoices for the purchases he has…

Synchem Chemicals (India) P.Ltd, Mumbai vs. DCIT 10(1), Mumbai

In the result, the appeal of the revenue is dismissed and appeal of the assessee is allowed

ITA 2753/MUM/2014[2010-11]Status: DisposedITAT Mumbai21 Apr 2021AY 2010-11
Section 10Section 115JSection 143(3)Section 2(47)Section 45

…vs CIT reported in 51 ITR 353 (SC) c) Decision of Hon’ble Gujarat High Court in the case of CIT vs New India Industries reported in 201 ITR 208 (Guj) d) Decision of Hon’ble Supreme Court in the case of New Savan Sugar & Gur Refinery Co. Ltd vs CIT reported in 74 ITR 7 (SC) 6.4. We find that the ld CITA rightly observed that the assessee had leased the factory premises along with plant & machinery to Lupin Ltd for which it was paid rental income of Rs 500 per month. Further , the assessee was offering Rs 12 lakhs per annum as tax under the head income from business. However, the ld AO computed this income as inco…

ACIT, Chennai vs. M/S. Tajmahal Agro Industries Pvt Ltd., Chennai

In the result, the assessee’s appeal for the assessment year 2004-05 & 2006-07 are partly allowed and the appeal for assessment year 2007-08 is dismissed

ITA 1940/CHNY/2010[2007-08]Status: DisposedITAT Chennai09 Sept 2019AY 2007-08

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: 11.06.2019
Section 50CSection 80G

…and the rent received by the assessee as per the agreement should not be assessed under the head “Business” as claimed by the assessee but should be treated as “Income from other Sources” as per the case laws in New Savan Sugar & Gur Refining Co. Ltd Vs. CIT (74 ITR 7) and also CIT Vs. Kuya & Khas Kuya Colliery Co., (156 ITR 206). Further, the AO held that the lessee had processed 45,44,000 kgs of paddy / rice during the financial year and paid Rs.90,88,000/- at the rate of Rs.2 per kg for using the machinery and building shed. Therefore, he estimated the lease rental income at Rs.0.50 per Kg net of all, resultan…

M/S. Tajmahal Agro Industries (P) Ltd., Chennai vs. ITO, Chennai

In the result, the assessee’s appeal for the assessment year 2004-05 & 2006-07 are partly allowed and the appeal for assessment year 2007-08 is dismissed

ITA 1874/CHNY/2010[2007-08]Status: DisposedITAT Chennai09 Sept 2019AY 2007-08

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: 11.06.2019
Section 50CSection 80G

…and the rent received by the assessee as per the agreement should not be assessed under the head “Business” as claimed by the assessee but should be treated as “Income from other Sources” as per the case laws in New Savan Sugar & Gur Refining Co. Ltd Vs. CIT (74 ITR 7) and also CIT Vs. Kuya & Khas Kuya Colliery Co., (156 ITR 206). Further, the AO held that the lessee had processed 45,44,000 kgs of paddy / rice during the financial year and paid Rs.90,88,000/- at the rate of Rs.2 per kg for using the machinery and building shed. Therefore, he estimated the lease rental income at Rs.0.50 per Kg net of all, resultan…

M/S. Tajmahal Agro Industries (P) Ltd., Chennai vs. ITO, Chennai

In the result, the assessee’s appeal for the assessment year 2004-05 & 2006-07 are partly allowed and the appeal for assessment year 2007-08 is dismissed

ITA 1873/CHNY/2010[2006-07]Status: DisposedITAT Chennai09 Sept 2019AY 2006-07

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: 11.06.2019
Section 50CSection 80G

…and the rent received by the assessee as per the agreement should not be assessed under the head “Business” as claimed by the assessee but should be treated as “Income from other Sources” as per the case laws in New Savan Sugar & Gur Refining Co. Ltd Vs. CIT (74 ITR 7) and also CIT Vs. Kuya & Khas Kuya Colliery Co., (156 ITR 206). Further, the AO held that the lessee had processed 45,44,000 kgs of paddy / rice during the financial year and paid Rs.90,88,000/- at the rate of Rs.2 per kg for using the machinery and building shed. Therefore, he estimated the lease rental income at Rs.0.50 per Kg net of all, resultan…

M/S. Tajmahal Agro Industries (P) Ltd., Chennai vs. ITO, Chennai

In the result, the assessee’s appeal for the assessment year 2004-05 & 2006-07 are partly allowed and the appeal for assessment year 2007-08 is dismissed

ITA 1872/CHNY/2010[2004-05]Status: DisposedITAT Chennai09 Sept 2019AY 2004-05

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaraman

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: 11.06.2019
Section 50CSection 80G

…and the rent received by the assessee as per the agreement should not be assessed under the head “Business” as claimed by the assessee but should be treated as “Income from other Sources” as per the case laws in New Savan Sugar & Gur Refining Co. Ltd Vs. CIT (74 ITR 7) and also CIT Vs. Kuya & Khas Kuya Colliery Co., (156 ITR 206). Further, the AO held that the lessee had processed 45,44,000 kgs of paddy / rice during the financial year and paid Rs.90,88,000/- at the rate of Rs.2 per kg for using the machinery and building shed. Therefore, he estimated the lease rental income at Rs.0.50 per Kg net of all, resultan…

The ITO, Ward-2(1)(4), Ahmedabad vs. Medical Technologies Pvt. Ltd., Ahmedabad

In the result, the appeal is dismissed

ITA 3328/AHD/2016[2013-14]Status: DisposedITAT Ahmedabad03 Jun 2019AY 2013-14
Section 143(3)Section 41(1)

…on by the appellant. Thus, the judgement of Hon'ble Supreme Court is squarely applicable over the facts of the case. The reliance in this regard is also placed on the Supreme Court judgment In the case of New Savan Sugar & Gur Refining Co. Ltd. Vs. CIT (1969) 74 ITR 7 and Serial Ram Doongarmal Vs. CIT (1961) 42 ITR 392. As a matter of fact, the appellant had only earned the income from dividend and interest on FD which were taxable under the head of income from other source and no business income has been offered by the appellant. 2.13. It has also been noticed that the provisions of Section 28(iv) of the I.T. A…

M/S. Agache Associates, New Delhi vs. ITO, New Delhi

Appeal of the assessee is allowed for statistical purposes,

ITA 5008/DEL/2016[2012-13]Status: DisposedITAT Delhi30 Jan 2019AY 2012-13

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Shri Anil Jain, AdvocateFor Respondent: Ms Ashima Neb, Sr. DR
Section 143(3)

…poration P. Ltd. vs ACIT, SC, Civil Appeal No.6437 of 2016 dt. 11.8.2016; (ii) Chennai Properties and Investment Ltd. vs CIT (2015) 373 ITR 673 (SC); (iii) Sultan Bros (P) Ltd. vs CIT (1964) 51 ITR 353 (SC); (iv) New Savan Sugar & Gur Refining Co. Ltd. (1969) 74 ITR 7 (SC); and (v) CIT vs Shambhu Investments 263 ITR 143 (SC) for the proposition that intention of the taxpayer, either expressed or gathered from the circumstances, may provide a guiding test that the income arising from letting out of the property would be treated as “business income” or income assessable under the head “Other Sources”. There was no…

M/S. Mula Pravara Electric Co-Op. Society Ltd., Ahmednagar vs. Deputy Ssistant Commissioner of Income-Tax

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

ITA 1776/PUN/2016[2012-13]Status: DisposedITAT Pune28 Sept 2018AY 2012-13

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं आयकर अपील सं. / Ita No. 1776/Pun/2016 आयकर अपील सं आयकर अपील सं िनधा"रण वष" / Assessment Year : 2012-13 िनधा"रण वष" िनधा"रण वष" िनधा"रण वष"

For Appellant: Shri S.M. DoshiFor Respondent: Shri Amit Dua

…antially a closed one and the assessee is only to receive the compensation or rent from the MSEDCL for handing over of the entire infrastructure of the assessee. Further, AO discussed certain case laws, i.e. New Seven Sugar and Gur Refinery Co. Ltd. Vs. CIT 74 ITR 7 (SC), Madras Silk and Rayon Mills Pvt. Ltd. Vs. ITO & Another 262 ITR 122 (Mad.), Universal Plast Limited Vs. CIT 237 ITR 454 (SC), Guntur Merchants Cotton Press Company Ltd. Vs. CIT 154 ITR 861 etc. and held that, how a particular 4 M/s. Mula Pravara Electric Co-op. Society Ltd., receipt of income is taxed under the “income from business” or f…

M/S. Hyderabad Distilleries & Wineries Pvt.Ltd., Hyderabad vs. ACIT, Circle-2(2), Hyderabad

Appeal are allowed

ITA 740/HYD/2012[2008-19]Status: DisposedITAT Delhi12 Jul 2018AY 2008-19

Bench: Shri P. M. Jagtap & Ms Suchitra Kamblem/S Hyderabad Distilleries & Vs Acit Wineries Pvt. Ltd. A-4, Ida, Uppal Circle-2(2) Hyderabad-39 Hyderabad Aaach2679B (Appellant) (Respondent)

Section 5

…TR 295 (SC). 11 12. As relates to the case-laws relied upon by the lower authorities, the Ld. AR submitted that the lower authorities have primarily relied upon the following decisions of the Hon’ble Apex Court: • New Savan Sugar & Gur Refinig Company Ltd.: 74 ITR 7 • Universal Plast Ltd.: 237 ITR 454 The Ld. AR submitted that in the above cases relied upon by the lower authorities, unequivocal finding recorded was that the assessee had parted with its commercial assets in favour of the lessee and there was no intention to resume business. On the basis of the aforesaid, the Court in the above referred cases hel…

Shri M M Creations, New Delhi vs. ACIT, New Delhi

In the result appeal filed by assessee for assessment year

ITA 5641/DEL/2012[2008-09]Status: DisposedITAT Delhi05 May 2017AY 2008-09

Bench: Sh. N. K. Saini & Smt. Beena A. Pillai & M. M. Creations Acit T-481A, Baljeet Nagar Circle-24(1), Behind Patel Nagar Police Station New Delhi Vs. New Delhi. Pan : Aaefm9802A (Appellant) (Respondent)

For Appellant: Sh. R. S. SinghviFor Respondent: Sh. Rajesh Kumar, Sr. DR
Section 24Section 56Section 56(2)(iii)

…51] 20 ITR 451 ; (2) Narain Swadeshi Weaving Mills v. 8 and CEPT [1954] 26 ITR 765 ; (3) CIT v. Calcutta National Bank Ltd. [1959] 37 ITR 171 ; (4) Sultan Brothers P. Ltd. v. CIT [1964] 51 ITR 353 ; (5) New Savan Sugar and Gur Refining Co. Ltd. v. CIT [1969] 74 ITR 7 and (6) CIT v. Vikram Cotton Mills Ltd. [1988] 169 ITR 597. 14. Keeping in mind aforesaid legal position, we shall now advert to facts of present case more particularly the composite lease agreement dated 25.08.2003. This agreement is entered into between assessee as Lessee and Agilent Technologies (International) Pvt. Ltd. as Lessor, inter alia rec…

New Savan Sugar & Gur Refining Co. Ltd. v. CIT (74 ITR 7) — Cited in 11 Judgments | BharatTax