A well‐ordered strategy of sulfoxonium ylides as a directing group as well as carbene source for the Ru‐catalysed [4+2] and Rh‐catalysed [4+1] carbo‐annulations with maleimides has been described. These novel methodologies have been successfully established for the synthesis of complex spiroindanones and benzoisoindoles containing compounds by the transition metal‐mediated C‐H activation/functionalization reactions. Further, Rh‐catalysed [4+1] annulated compounds were obtained in the absence of any oxidant. A possible rationale for the remarkable divergent selectivity between the two catalysts has been proposed.