S.G. Mercantile Corporation v. CIT

113 ITR 712High Court1978#4598 most cited

What is S.G. Mercantile Corporation v. CIT authority for?

An activity carried out continuously and in an organized manner with the purpose of earning profit constitutes business or trading activity, and income derived from such activity is considered business income. Expenses incurred to earn this income are deductible.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2022.

Also referred to as

S.G. Mercantile Corporation v. CIT · 113 ITR 712 · business income · trading activity · organized manner · profit motive · income from salary and commission · deductible expenses

Judgments citing S.G. Mercantile Corporation v. CIT

Lucknow Development Authority, Lucknow vs. ACIT (E), Lucknow

In the result, all the appeals are partly allowed

ITA 185/LKW/2019[2013-14]Status: DisposedITAT Lucknow10 Mar 2022AY 2013-14

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…vity; and (ii) it must be carried on with a profit motive." Similar findings have been made in the following case laws: (1) Barendra Prasad Ray v. ITO (1981) 129 ITR 295 (SC) LalaIndra Sun In Re (1940) 8 ITR 187 (Alld) (2) NarasinghaKar& CO. v, CIT (1978) 113 ITR 712(Ori) (3) I.T.A. Nos.185,186,163,164,439/Lkw/2019 38 9.11 From the aforesaid, it is clear that the appellant "Authority" is not engaged in carrying on any activity in the nature of trade, commerce or business or any activity in rendering any service in relation to any trade, commerce or business in as much as profit motive is one of the essenti…

Lucknow Evelopment Authority, Lucknow vs. I.T.O., Lucknow

In the result, all the appeals are partly allowed

ITA 164/LKW/2019[2015-16]Status: DisposedITAT Lucknow10 Mar 2022AY 2015-16

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…vity; and (ii) it must be carried on with a profit motive." Similar findings have been made in the following case laws: (1) Barendra Prasad Ray v. ITO (1981) 129 ITR 295 (SC) LalaIndra Sun In Re (1940) 8 ITR 187 (Alld) (2) NarasinghaKar& CO. v, CIT (1978) 113 ITR 712(Ori) (3) I.T.A. Nos.185,186,163,164,439/Lkw/2019 38 9.11 From the aforesaid, it is clear that the appellant "Authority" is not engaged in carrying on any activity in the nature of trade, commerce or business or any activity in rendering any service in relation to any trade, commerce or business in as much as profit motive is one of the essenti…

Lucknow Development Authority, Lucknow vs. Assistant Commissioner of Income Tax (Exemption), Lucknow

In the result, all the appeals are partly allowed

ITA 163/LKW/2019[2014-15]Status: DisposedITAT Lucknow10 Mar 2022AY 2014-15

Bench: Shri A. D. Jain & Shri T. S. Kapoor

Section 11Section 11rSection 12Section 12ASection 13(1)(c)Section 13(3)Section 143(3)Section 147Section 148Section 2(15)

…vity; and (ii) it must be carried on with a profit motive." Similar findings have been made in the following case laws: (1) Barendra Prasad Ray v. ITO (1981) 129 ITR 295 (SC) LalaIndra Sun In Re (1940) 8 ITR 187 (Alld) (2) NarasinghaKar& CO. v, CIT (1978) 113 ITR 712(Ori) (3) I.T.A. Nos.185,186,163,164,439/Lkw/2019 38 9.11 From the aforesaid, it is clear that the appellant "Authority" is not engaged in carrying on any activity in the nature of trade, commerce or business or any activity in rendering any service in relation to any trade, commerce or business in as much as profit motive is one of the essenti…

Shri Jalendra Sahoo, Cuttack vs. ITO, Ward-2(3), Bhubaneswar

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

ITA 9/CTK/2017[2010-11]Status: DisposedITAT Cuttack16 Oct 2019AY 2010-11

Bench: Shri Chandra Mohan Garg, Jm & Shri L.P. Sahu, Am आयकर अऩीऱ सं./Ita No.09/Ctk/2017 (नििाारण वषा / Assessment Year :2010-2011) Shri Jalendra Sahoo, Vs. Ito, Ward-2(3), At-Kirtania, N.M.Padia, Bhubaneswar Bhogarai, Balasore-756081 स्थायी ऱेखा सं./ Pan No. : Blxps 3197 M (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Shri S.N.Sahu, AdvocateFor Respondent: Shri Subhendu Dutta, DR
Section 143(3)Section 37

…or trading activity. Hence, business income. Even in "House rent" cases where the assessee receives a fixed house rent it has been decided by Hon'ble Supreme Court in the case of S.G. Mercantile Corporation Vs. CIT, 83 ITR 700 (SC) & Narsingha Kaur Vs. CIT, 113 ITR 712(Ori), CIT Vs. MP. Bajaj & Others, 200 ITR 131(Ori). That an activity carried continuously in an organized manner with a set purpose with a view to earn profit is a business or trading activity and the assessee's earning income from salary & commission like that. So in the instance case since the assessee gets his commission and remuneration or p…

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

…irs and providing stipulated facilities by separately charging some nominal fees would not render the monthly rentals from bare letting out of the flats as involving complex activities of the nature of organized business. The case of Narasingh Kar, 113 ITR 712 (OR) referred to by the A.R. was clearly distinguishable on facts since the activities of a contractor in that case involved capital outlay attention and labour for constructing shop rooms on land belonging to a school and letting out those on collection of rents that was somewhat shared between the contractor and the School. The remainin…