Shambhu Investment (P) Ltd. v. CIT

263 ITR 143Supreme Court of India2003#528 most cited

What is Shambhu Investment (P) Ltd. v. CIT authority for?

Income derived from letting out property along with incidental use of furniture, fixtures, and common facilities is assessable as 'income from house property' and not 'business income' when the prime object is merely to let out and not to exploit the property as a business asset.

181

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2010 to 2026.

Also referred to as

Shambhu Investment (P) Ltd. v. CIT · 263 ITR 143 · income from house property · business income · Section 22 Income Tax Act · Section 37(1) Income Tax Act · rental income classification · letting property with amenities · exploitation of property · dominant object letting · Section 2(13) business definition · income classification Supreme Court

Also reported as

129 Taxmann 70

Sections most often in play

Section 143(3)Section 22Section 24Section 14ASection 2(13)Section 37(1)Section 250Section 57(iii)

Issues it is cited on

annual valuesection 24(a)section 22disallowance under section 14asection 24section 37(1)scrutiny assessmentincome from other sourcessection 14asalarysection 80transfer

Judgments citing Shambhu Investment (P) Ltd. v. CIT

Bombay Stock Exchange Ltd, Mumbai vs. Addl CIT 2(1), Mumbai

In the result, appeal in ITA

ITA 152/MUM/2016[2010-11]Status: DisposedITAT Mumbai31 May 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble&

For Appellant: Shri Niraj ShethFor Respondent: Shri Ravindra
Section 14ASection 234CSection 24

….NO. 4820 & 152/MUM/2016 (A.Y: 2010-11) M/s. Bombay Stock Exchange Ltd., the lease agreements entered into by the assessee with the tenants and placing reliance on the decision of the Hon'ble Supreme Court in the case of Shambhu Investments Pvt. Ltd., v. CIT [263 ITR 143] held that the monthly rent received by the assessee from letting out of premises with furniture and fixtures is assessable under the head “Income from House Property” and accordingly he computed the income from House property after allowing property taxes paid and 30% towards repairs. The claim of the assessee towards business expenses towards r…

DCIT 2(1)(1), Mumbai vs. Bombay Stock Exchange Ltd, Mumbai

In the result, appeal in ITA

ITA 5748/MUM/2015[2010-11]Status: DisposedITAT Mumbai31 May 2019AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble&

For Appellant: Shri Niraj ShethFor Respondent: Shri Ravindra
Section 14ASection 234CSection 24

….NO. 4820 & 152/MUM/2016 (A.Y: 2010-11) M/s. Bombay Stock Exchange Ltd., the lease agreements entered into by the assessee with the tenants and placing reliance on the decision of the Hon'ble Supreme Court in the case of Shambhu Investments Pvt. Ltd., v. CIT [263 ITR 143] held that the monthly rent received by the assessee from letting out of premises with furniture and fixtures is assessable under the head “Income from House Property” and accordingly he computed the income from House property after allowing property taxes paid and 30% towards repairs. The claim of the assessee towards business expenses towards r…

ACIT 32(3), Mumbai vs. Rushi Builders & Developers, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 580/MUM/2017[2010-11]Status: DisposedITAT Mumbai24 Apr 2019AY 2010-11

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2010-11

For Appellant: Dr. K. Shivaram, A.RFor Respondent: Shri D.G. Pansari, D.R
Section 133(6)

…note that in the subsequent year, the Revenue has accepted the income from amenities as income from the house property even in the assessment framed under section 143(3), the case of the assessee is also supported by Shambhu Investments (P) Ltd vs. CIT (2003) 263 ITR 143 SC wherein the Court has held that it 14 CO No.356/M/2017 M/s. Rushi Builders & Developers was clear from the primary object was to let out the properties with additional right of using furniture and fixture and other facilities for which the rent was being charged on monthly basis, therefore income derived from the said property was income from…

The ACIT, Thiruvalla vs. M/S.Muthoot Properties & Investments, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 75/COCH/2018[2005-06]Status: HeardITAT Cochin21 Feb 2019AY 2005-06

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

DCIT, Thiruvalla vs. Muthoot Properties & Investments, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 74/COCH/2018[2003-04]Status: HeardITAT Cochin21 Feb 2019AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

The ACIT, Thiruvalla vs. M/S.Muthoot Properties & Investments, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 73/COCH/2018[2002-03]Status: HeardITAT Cochin21 Feb 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

DCIT, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 72/COCH/2018[2007-08]Status: HeardITAT Cochin21 Feb 2019AY 2007-08

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

DCIT, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 71/COCH/2018[2004-05]Status: HeardITAT Cochin21 Feb 2019AY 2004-05

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

DCIT, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Kozhencherry

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 70/COCH/2018[2003-04]Status: HeardITAT Cochin21 Feb 2019AY 2003-04

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

The ACIT, Circle-1, Thiruvalla vs. Mar Gregorious Memorial Muthoot Medical Centre, Pathanamthitta

In the result, the appeals of the Revenue are partly allowed for statistical

ITA 69/COCH/2018[2002-03]Status: HeardITAT Cochin21 Feb 2019AY 2002-03

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 37(1)Section 45Section 57

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

ACIT - 9(2)(2), Mumbai vs. E-City Projects Construction Pvt. Ltd., Mumbai

In the result, this appeal by the Revenue is dismissed

ITA 4988/MUM/2017[2013-14]Status: DisposedITAT Mumbai04 Feb 2019AY 2013-14

Bench: Shri Shamim Yahya, Am & Shri Ram Lal Negi, Jm

For Appellant: Shri R. Manjandtha SwamyFor Respondent: 22.11.2018
Section 143(3)Section 24

…) "Whether on the facts and in the circumstances of the case and in law, The Ld.CIT(A) has erred on facts and in law in completely ignoring the decision of the Hon'ble Supreme Court in the case of Shambhu Investment (P) Ltd vs CIT(2003) 184CTP (SC) 91: (2003) 263 ITR 143(SC) wherein it is held that income derived by an assessee by letting out furnished premises on monthly rent basis to various parties alongwith various services, is assessable as income from property and not business income" (iii) "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the intere…

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)

…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 such thing as a naturally born commercial asset be…

Asst CIT 24(3), Mumbai vs. Natraj Studios LLP, Mumbai

In the result, both, the cross objections of assessee and the appeals of Revenue are dismissed

ITA 42/MUM/2017[2013-14]Status: DisposedITAT Mumbai29 Oct 2018AY 2013-14

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri DG Pansari, DRFor Respondent: S/shri Mihir C Naniwadekar
Section 143(3)

…Aayakr ApIlaIya AiQakrNa “B” nyaayapIz maMuba[- mao. IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI श्री महावीर स िंह, न्याययक दस्य एविं श्री मनोज कुमार अग्रवाल लेखा दस्य के मक्ष । BEFORE SRI MAHAVIR SINGH, JM AND SRI MANOJ KUMAR AGGARWAL, AM Aayakr ApIla saM./ ITA No. 41/Mum/2017 (inaQa-arNa baYa- / Assessment Year 2011-12) Aayakr ApIla saM./ ITA No. 42/Mum/2017 (inaQa-arNa baYa- / Assessment Year 2013-14) The Asst. Commissioner of Natraj Studios LLP, Bldg.- Income Tax-24(3) Natraj Rustomjee, Office of the ACIT 24(3), Andheri(East), Vs. R.No. 413, 4th Floor, Piramal Mumbai-400 069 Chambers, Lalbaug, Pa…

Asst CIT 24(3), Mumbai vs. Natraj Studios LLP, Mumbai

In the result, both, the cross objections of assessee and the appeals of Revenue are dismissed

ITA 41/MUM/2017[2011-12]Status: DisposedITAT Mumbai29 Oct 2018AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Manoj Kumar Aggarwal, Am

For Appellant: Shri DG Pansari, DRFor Respondent: S/shri Mihir C Naniwadekar
Section 143(3)

…Aayakr ApIlaIya AiQakrNa “B” nyaayapIz maMuba[- mao. IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI श्री महावीर स िंह, न्याययक दस्य एविं श्री मनोज कुमार अग्रवाल लेखा दस्य के मक्ष । BEFORE SRI MAHAVIR SINGH, JM AND SRI MANOJ KUMAR AGGARWAL, AM Aayakr ApIla saM./ ITA No. 41/Mum/2017 (inaQa-arNa baYa- / Assessment Year 2011-12) Aayakr ApIla saM./ ITA No. 42/Mum/2017 (inaQa-arNa baYa- / Assessment Year 2013-14) The Asst. Commissioner of Natraj Studios LLP, Bldg.- Income Tax-24(3) Natraj Rustomjee, Office of the ACIT 24(3), Andheri(East), Vs. R.No. 413, 4th Floor, Piramal Mumbai-400 069 Chambers, Lalbaug, Pa…

ITO 12(1)(3), Mumbai vs. Balwas Realty and Infrastructure P.Ltd, Mumbai

In the result, the appeal filed by the revenue is hereby ordered to be dismissed

ITA 1180/MUM/2017[2013-14]Status: DisposedITAT Mumbai03 Oct 2018AY 2013-14

Bench: Shri G.S. Pannu, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.1180/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2013-14) Ito-12(1)(3) बिधम/ M/S. Balwas Realty & Room No. 145A, 1St Floor, Infrastructure Pvt. Ltd. Vs. 4Th Aayakar Bhavan, M.K. Floor, Techniplex-1, Road, Mumbai-400020. Techniplex Complex, Veer Savarkar Flyover, Goregaon (W), Mumbai-400062. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacb2165L (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Revenue By: Shri D.G. Pansari (Dr) Assessee By: Shri Rajesh S. Shah (Ar) सुनवाई की तारीख / Date Of Hearing: 23.08.2018 घोषणा की तारीख /Date Of Pronouncement: 03.10.2018 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 25.11.2016 Passed By The Commissioner Of Income Tax (Appeals) -20, Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2013- 14. 2. The Revenue Has Raised The Following Grounds: - "1. On The Facts & In Circumstances Of The Case & In Law, The Ld. Cit(A) Erred In Holding That The Income Earned From Letting Out The Building Is Chargeable Under The Head A.Y.2013-14

For Appellant: Shri Rajesh S. Shah (AR)For Respondent: Shri D.G. Pansari (DR)
Section 143(2)Section 44A

…he basis of the decision of the Hon’ble Supreme Court in the case of Chennai Properties and Investments Ltd. Vs. CIT (2015) 56 Taxmann.com 456 (SC) and on the basis of the decision of the Hon’ble Supreme Court in the case of Shambhu Investment P. Ltd. Vs. CIT 263 ITR 143 (SC) therefore, the finding of the CIT(A) is not liable to be disturbed in the interest of justice. It is also specifically argument that the case of the assessee has duly been covered by the decision of the Hon’ble ITAT Mumbai Bench in ITAT. No.1771/M/2016 dated 05.01.2018, therefore, in the said circumstances, the appeal of the revenue is liabl…

ACIT - 5(3)(2), Mumbai vs. Xtp Design Furniture Ltd., Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 717/MUM/2017[2012-13]Status: DisposedITAT Mumbai25 Sept 2018AY 2012-13

Bench: Shri B.R. Baskaran (Am) & Shri Ravish Sood(Jm)

…s held that the amount received towards amenities is assessable under the head ‘income from house property’. In A.Y. 2010-11, the assessee has placed reliance on the decision rendered by Hon'ble Supreme Court in the case of Shambhu Investment Private Limited (263 ITR 143) and also in the case of Sultan Brothers Private Limited (51 ITR 353) to support its view. Accordingly, the Tribunal in A.Y. 2010-11 also has held that the amount received towards amenities is assessable under the head ‘income from house property’. 4. On the contrary, learned DR took support of the decision rendered by Hon'ble Kolkata High Court…

Addl CIT 2(3), Mumbai vs. Trent Ltd, Mumbai

In the result, appeal of the assessee is allowed

ITA 1727/MUM/2011[2006-07]Status: DisposedITAT Mumbai27 Aug 2018AY 2006-07

Bench: Shri C.N. Prasad & Shri Rajesh Kumarassessment Year: 2006-07

For Appellant: Shri Nitesh Joshi, A.RFor Respondent: Shri V. Justin, D.R
Section 14ASection 23(1)(a)Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Assessment Year: 2006-07 M/s. Trent Ltd., Additional CIT, Bombay House, Range – 2(3), 2nd Floor, 24, Vs. Aayakar Bhavan, Homy Mody Street, Fort, Mumbai Mumbai – 400 001 PAN: AAACL 1838J (Appellant) (Respondent) Assessment Year: 2006-07 DCIT-2(3), M/s. Trent Ltd., R.No.555, Bombay House, 2nd Floor, 24, Aayakar Bhavan, Vs. Mumbai Homi Mody Street, Fort, Mumbai – 400 001 PAN: AAACL 1838J (Appellant) (Respondent) Present for: Assessee by : Shri Nitesh Joshi, A.R. Revenu…

Trent Ltd, Mumbai vs. ACIT 2(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 1163/MUM/2011[2006-07]Status: DisposedITAT Mumbai27 Aug 2018AY 2006-07

Bench: Shri C.N. Prasad & Shri Rajesh Kumarassessment Year: 2006-07

For Appellant: Shri Nitesh Joshi, A.RFor Respondent: Shri V. Justin, D.R
Section 14ASection 23(1)(a)Section 37(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER Assessment Year: 2006-07 M/s. Trent Ltd., Additional CIT, Bombay House, Range – 2(3), 2nd Floor, 24, Vs. Aayakar Bhavan, Homy Mody Street, Fort, Mumbai Mumbai – 400 001 PAN: AAACL 1838J (Appellant) (Respondent) Assessment Year: 2006-07 DCIT-2(3), M/s. Trent Ltd., R.No.555, Bombay House, 2nd Floor, 24, Aayakar Bhavan, Vs. Mumbai Homi Mody Street, Fort, Mumbai – 400 001 PAN: AAACL 1838J (Appellant) (Respondent) Present for: Assessee by : Shri Nitesh Joshi, A.R. Revenu…

Sane & Doshi Enterparises, Mumbai vs. Jt CIT 17(3), Mumbai

In the result appeal of the assessee is dismissed

ITA 998/MUM/2016[2012-13]Status: DisposedITAT Mumbai08 Aug 2018AY 2012-13

Bench: Shri Saktijit Dey & Shri Ramit Kochar

For Appellant: Shri. S.C. TiwariFor Respondent: Shri V. Justin, DR
Section 143(3)Section 24Section 48

…asic charges of rent. The assessee has made bifurcation of the receipt from the, occupiers of the shops/stalls as rent and service charges. As rightly held by the Assessing Officer, decision of Hon'ble Supreme Court in the case of Shambu Investment Pvt. Ltd., 263 ITR 143 will apply. The assessee has not established that he was engaged in any systematic or organized activity of providing service to the occupiers of the shops/stalls so as to constitute the receipts from them as business income. In our opinion, the assessee received income by letting out shops/stalls; and therefore, the same has to be held as income…

Ambattur Infra Developers, Chennai vs. ACIT Non Corporate Circle 7(1), Chennai

In the result, the appeals of the assessee are allowed

ITA 689/CHNY/2018[2013-14]Status: DisposedITAT Chennai01 Aug 2018AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri Abraham P. George] आयकर अपील सं./I.T.A. Nos.689 & 690/Chny/2018 "नधा"रण वष" /Assessment Year : 2013-14 & 2014-15. Ambattur Infra Developers, Vs. The Assistant Commissioner No.86, E-2, Industrial Estate, Of Income Tax, Ambattur, Non Corporate Circle 7(1), Chennai 600 058. Chennai.

For Appellant: Ms. B. Jaisheila, C.AFor Respondent: Shri. Sailendra Mamidi, PCIT
Section 194I

…omote and develop a market on his landed property, income therefrom would be assessable under the head ‘’income from house property’’. Reliance was also placed on the judgment of Hon’ble Apex Court in the case of Shambhu Investments P. Ltd vs. CIT, (2003) 263 ITR 143. Ld. Commissioner of Income Tax (Appeals) distinguished the judgment of Hon’ble Jurisdictional High Court in the case of Elnet Technologies Ltd.(supra) and that of Hon’ble Apex Court in the case of Rayala Corporation Pvt. Ltd (supra) observing that circumstance of each case had to be considered on its own facts before reaching a conclusion whe…