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“income from other sources”

Income HeadsSection 56Section 568,248 judgments

The decision most relied on for income from other sources is Jute Corporation of India Ltd. v. CIT (187 ITR 688), cited in 1,372 judgments on BharatTax.

Leading authorities on income from other sources

Jute Corporation of India Ltd. v. CIT
187 ITR 688 · 1991 · Supreme Court
1,372
citing judgments

The Commissioner of Income Tax (Appeals) possesses co-terminus powers with the Assessing Officer and can direct the Assessing Officer to perform actions he failed to do, but cannot introduce a new source of income in the assessment. The appellate assessment must be confined to the items of income that were the subject matter of the original assessment.

Totgars Co-operative Sale Society Ltd. v. ITO
322 ITR 283 · 2010 · Supreme Court
1,283
citing judgments

The interest income earned by a cooperative society from investing its surplus funds in fixed deposits with banks is not "derived from" its eligible business activities and is taxable as "income from other sources" under Section 56, thus not qualifying for deduction under Section 80P.

K.P. Varghese v. ITO
131 ITR 597 · 1981 · Supreme Court
989
citing judgments

An addition to income cannot be made merely on the basis of a difference in valuation of assets or a Valuation Officer's report without establishing actual understatement of consideration or the source of unexplained funds through proper enquiry. The Assessing Officer must conduct proper enquiry and satisfy the conditions for making such additions.

GE India Technology Centre Pvt. Ltd. v. CIT
327 ITR 456 · 2010 · Supreme Court
663
citing judgments

Tax must be deducted at source from payments made to a non-resident under Section 195 only if such payment is chargeable to tax in India. The Assessing Officer bears the onus to establish that the payments made are indeed chargeable to tax under the Income Tax Act.

Commissioner of Income Tax v. Nova Promoters and Finlease (P) Ltd.
342 ITR 169 · 2012 · High Court
658
citing judgments

To make an addition under Section 68 for unexplained cash credits, the Assessing Officer must conduct proper inquiry into the identity, genuineness, and creditworthiness of the creditor, especially concerning share application money. The assessee's initial discharge of burden by providing necessary details shifts the onus back to the AO for further investigation, including the source of source.

Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT
227 ITR 172 · 1997 · Supreme Court
621
citing judgments

Interest income earned on deposits, particularly before the commencement of business operations or as a requirement for business licensing, is taxable as "income from other sources" under Section 56, and cannot be treated as business income or set off against interest on borrowed funds.

Kale Khan Mohammad Hanif v. CIT
50 ITR 1 · 1963 · Supreme Court
581
citing judgments

The assessee bears the onus of proving the source and nature of any sum of money or receipt found to have been received by them. If the assessee fails to satisfactorily explain the receipt, the Income-tax Officer is entitled to treat it as taxable income.

Liberty India v. CIT
317 ITR 218 · 2009 · Supreme Court
571
citing judgments

The Supreme Court clarified that for profits and gains to be eligible for deductions under sections like 10B, 80IA, or 80IB, the income must be "derived from" or have a direct nexus to the eligible business activity. Income from incidental sources like the sale of scrips/licenses or interest on employee loans is generally not considered as derived from the eligible business for such deductions.

Judgments citing income from other sources

Prema, Chengalpattu vs. ITO, Ncw-22(1), Tambaram

In the result, appeal filed by the assessee in ITA

ITA 2321/CHNY/2024[2016-17]Status: DisposedITAT Chennai05 Mar 2025AY 2016-17

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.S.P.Chidambaram
Section 139(1)Section 50C

facts, what emerges in the light of the assertion of assessee is that in the relevant AY 2016-17, the assessee had only ‘income from other sources’ i.e. interest- income of Rs.21,100/- and therefore, she didn’t file RoI u/s.139(1) of the Act; and that the allegation that

Income Tax Officer, Vijayapur vs. Vikram Dalichand Bandari, Vijayapur

In the result the appeal filed by the revenue is dismissed

ITA 1390/BANG/2024[2014-15]Status: DisposedITAT Bangalore05 Mar 2025AY 2014-15

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessmentyear:2014-15

For Appellant: Sri Sudheendra B.R., A.RFor Respondent: Shri D.K. Mishra, D.R
Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250Section 69A

with Shri Guru Basava Urban Credit Souhardha Co-operative Bank Ltd., Bijapur amounting to Rs.6,84,68,020/- is considered as assessee’s income from other sources and added u/s 69A of the Act as unexplained money. 5. Aggrieved by the assessment completed u/s 143(3)/147 r.w.s. 144B ... assessee from the penal provisions and accordingly treated the entire amount of cash transactions amounting to Rs. 6,84,68,020/- as Income from Other Sources and added u/s 69A of the Act as unexplained Money. 8.2 The ld. CIT(A)/NFAC however deleted the impugned addition with the following

Indus Education Society, Lakhanpur Kanput vs. DCIT, Exemp., Ghaziabad

In the result, the appeal of the assessee is allowed

ITA 671/DEL/2019[2014-15]Status: DisposedITAT Delhi05 Mar 2025AY 2014-15

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumarassessment Year : 2017-18 Harish Chand Gupta, Vs. Income Tax Officer, Bn-81, West Shalimar Bagh, Ward-34(1), Delhi – 110 088. Delhi. Pan: Aeupg0010Q (Appellant) (Respondent) Assessee By : Shri S.K. Gupta, Ca Revenue By : Shri Om Parkash, Sr. Dr Date Of Hearing : 29.10.2025 Date Of Pronouncement : 23.12.2025

For Appellant: Shri S.K. Gupta, CAFor Respondent: Shri Om Parkash, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 144Section 250Section 68Section 69A

return was processed u/s 143(1) of the Act. The assessee had derived income under the head ‘Income from business or profession’ ‘income from other sources’ and salary. The case was selected for scrutiny under complete scrutiny for the reasons:- (i) Purchases shown in the ITR is less than

Late Mahesh Ramanlal Modi L/H Manish Mahesh Modi, Bharuch vs. ACIT Circle-1, Bharuch

In the result, ground No. VII of appeal raised by the assessee is also allowed for statistical purposes

ITA 999/SRT/2024[2017-18]Status: DisposedITAT Surat04 Mar 2025AY 2017-18

Bench: Shri Pawan Singh & Shri Bijayananda Pruseth(Physical Hearing) Late Mahesh Ramanlal Modi, A.C.I.T., Through L-H Manish Mahesh Modi, Circle-1, Vs. Near Shakuntal Apartment, Dahej Bharuch. Bypass Road At Nandelav, Bharuch-392001 (Gujarat) Pan No. Adfpm 4030 N Appellant/ Assessee Respondent/ Revenue

Section 115BSection 23(5)Section 24Section 254(1)Section 40Section 69A

shown business income from Petrol Pump of Hindustan Petroleum Corporation Limited, business from carting activities in the name of ‘Mahesh Ramanlal Modi’, income from ‘other sources’ and profit from partnership in ‘Maheshchandra Modi & Company’. The case of assessee was selected for scrutiny. During the assessment, the Assessing Officer noted that ... separate books of account for petrol pump business which is duly audited. The assessee also maintained personal books, wherein besides holding personal assets, income from other sources and income from carting business is accounted. Statement of total income for A.Y. 2017-18 is filed on page

Tajshree Autowheels Private Limited, Nagpur vs. ACIT Circle-4, Nagpur

In the result, assessee’s appeal is allowed for statistical purposes

ITA 400/NAG/2024[2014-15]Status: DisposedITAT Nagpur04 Mar 2025AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Madhav VichoreFor Respondent: Shri Abhay Y. Marathe
Section 56(2)Section 56(2)(viib)

prejudice to the generality of the provisions of sub-section (1), the following incomes, shall be chargeable to income tax under the head "Income from other sources, namely: (viiib) Where a company, not being a company in which the public are substantially interested, receives, in any previous year, from ... Income Tax Act, 1961, Rs. 32,26,000/- is disallowed and added back to the total income of the assessee under the head 'Income from Other Sources'. Penalty proceedings u/s 271(1)(c) of Income Tax Act, 1961 initiated separately for furnishing inaccurate particulars of income.” 6 Tajshree Autowheels

Shripad Govind Risaldar, Nagpur vs. ITO Ward 5(2), Nagpur

In the result, assessee’s appeal stands allowed

ITA 309/NAG/2024[2017-18]Status: DisposedITAT Nagpur04 Mar 2025AY 2017-18

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: NoneFor Respondent: Shri Abhay Y. Marathe

return of income on 19/09/2017, declaring income at ` 1,91,940, comprising of income from salary from Partnership Firm, rental income and income from other sources. The case of the assessee was selected for scrutiny under CASS for verification of cash deposits during the demonetization period. The Assessing Officer raised

The Visakhapatnam Port Trust Employees Credit Co-Operative Society, Visakhapatnam vs. Assistant Commissioner of Income Tax, Circle-1(1), Visakhapatnam

In the result, appeal of the assessee is allowed

ITA 534/VIZ/2024[2017-18]Status: DisposedITAT Visakhapatnam04 Mar 2025AY 2017-18

Bench: Shri K.Narasimha Chary & Shri Balakrishnan S.

For Appellant: Billapati & Co., ARFor Respondent: Dr. Aparna Villuri, Sr DR
Section 80PSection 80P(2)Section 80P(2)(a)

attributable to the activities specified in section 80P(2)(a) of the Act has to be necessarily assessed under the head ‘income from other sources’. To reach this conclusion, the learned CIT(A) placed reliance on the decision of the Hon’ble Apex Court in the case of Totgars

Md Mahimud Sk, Malda vs. I.T.O., Ward - 3(1), Malda

In the result, the appeal of the assessee is allowed

ITA 2229/KOL/2024[2017-2018]Status: DisposedITAT Kolkata04 Mar 2025AY 2017-2018

Bench: Shri Rajesh Kumar, Am & Shri Sonjoy Sarma, Jm

For Appellant: Shri S.K. Tulsiyan, ARFor Respondent: Shri Prabhakar Prakash Ranjan
Section 142(1)Section 144BSection 151Section 151A

declaring an income of Rs. 2.25,800/-. During the year under consideration the assessee eamed income under the Head Income from Business and Income from other Sources. Statutory notices u/s 143(2), 142(1} alongwith questionnaire were issued to assessee. 2. During the course of assessment proceedings it has been ... reply of the assessee and the return of the income filed u/s 148 that the assessee is driving income from the business and income from other sources. After considering the teply of the assessee, the reply is not found tenable because the assessee has not produced proper books of account

Basavan Bagewadi Taluka Primary Teachers Co-Operative Society Limited, Bijapur vs. Income Tax Officer, Ward-1, & Tps, Bijapur

ITA 869/BANG/2024[2020-21]Status: DisposedITAT Bangalore04 Mar 2025AY 2020-21

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri G.S. Budyal, A.RFor Respondent: Sri Venkatesh V., D.R
Section 143(2)Section 143(3)Section 250Section 80P(2)(a)Section 80P(2)(d)

operative banks and district co-operative banks and interest earned on which cannot be treated as business income but it is income from other sources. In view of the above, an amount of Rs.96,40,390/- claimed by the assessee society as deduction ... respect of interest income from Co-operative Banks/scheduled banks and directed the AO to consider the interest earned as “income from other sources” and not to allow the deduction u/s 80P(2)(d) as well as u/s 80P(2)(a)(i) of the Act on such interest income and accordingly

Basavan Bagewadi Taluka Primary Teachers Co-Operative Society Limited, Bijapur vs. Income Tax Officer, Ward-1 & Tps, Bijapur

ITA 868/BANG/2024[2018-19]Status: DisposedITAT Bangalore04 Mar 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri G.S. Budyal, A.RFor Respondent: Sri Venkatesh V., D.R
Section 143(2)Section 143(3)Section 250Section 80P(2)(a)Section 80P(2)(d)

operative banks and district co-operative banks and interest earned on which cannot be treated as business income but it is income from other sources. In view of the above, an amount of Rs.96,40,390/- claimed by the assessee society as deduction ... respect of interest income from Co-operative Banks/scheduled banks and directed the AO to consider the interest earned as “income from other sources” and not to allow the deduction u/s 80P(2)(d) as well as u/s 80P(2)(a)(i) of the Act on such interest income and accordingly

Jugesh Shobhnath Yadav, Mumbai vs. Assessment Unit, Income Tax Department Faceless Penalty India

In the result, appeal in ITA No

ITA 387/MUM/2025[2018 - 2019]Status: DisposedITAT Mumbai04 Mar 2025

Bench: Shri Anikesh Banerjee & Omkareshwar Chidara

For Appellant: Shri Vipul Shah / Akshay ShahFor Respondent: Ms. Kavitha Kaushik,(SR DR)
Section 144Section 144BSection 147Section 250Section 271ASection 56Section 56(2)Section 56(2)(x)Section 69B

being the difference between the Market Value of the Property and the consideration of the Property Purchased as Income from Other Sources under Section 56 (2) (x) of the Income Tax Act, 1961. (i) Without granting any opportunity to the Appellant for substantiating his stand that the building is constructed ... being the difference between the Market Value of the Property and the consideration of the Property Purchased as Income from Other Sources under the provision of Section 56 (2) (x) of the Income Tax Act, 1961. 2.1 On the facts and in the circumstances of the case

Jugesh Shobhnath Yadav, Mumbai vs. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre

In the result, appeal in ITA No

ITA 386/MUM/2025[2018 - 2019]Status: DisposedITAT Mumbai04 Mar 2025

Bench: Shri Anikesh Banerjee & Omkareshwar Chidara

For Appellant: Shri Vipul Shah / Akshay ShahFor Respondent: Ms. Kavitha Kaushik,(SR DR)
Section 144Section 144BSection 147Section 250Section 271ASection 56Section 56(2)Section 56(2)(x)Section 69B

being the difference between the Market Value of the Property and the consideration of the Property Purchased as Income from Other Sources under Section 56 (2) (x) of the Income Tax Act, 1961. (i) Without granting any opportunity to the Appellant for substantiating his stand that the building is constructed ... being the difference between the Market Value of the Property and the consideration of the Property Purchased as Income from Other Sources under the provision of Section 56 (2) (x) of the Income Tax Act, 1961. 2.1 On the facts and in the circumstances of the case

Nawal Kishore Banka, Kolkata vs. I.T.O., Ward - 32(4), Kolkata

In the result, the appeal of the assessee is allowed for statistical purpose subject to above directions

ITA 1625/KOL/2024[2011-2012]Status: DisposedITAT Kolkata03 Mar 2025AY 2011-2012

Bench: Shri George Mathan & Shri Rakesh Mishraassessment Year: 2011-12

For Appellant: Shri Manish Tiwari, ARFor Respondent: Ms. Rama Choudhary, Sr. DR
Section 250Section 68

order passed by the ld. CIT(A) is an ex parte order confirming the addition of Rs.1,24,76,500/- under the head income from other sources as undisclosed income u/s. 68 of the Act. Hence, the ld. AR prayed before the Bench to set aside the order 2 Nawal

Sushiladevi Parasmaljijain, Hubballi vs. The Income Tax Officer, Ward -1(4), Hubli

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

ITA 2041/BANG/2024[2017-18]Status: DisposedITAT Bangalore03 Mar 2025AY 2017-18

Bench: Shri Waseem Ahmedassessment Year: 2017-18

For Appellant: Shri Vishal S Rao, C.AFor Respondent: Shri Ganesh R Ghale, Advocate – Standing
Section 142(1)Section 234BSection 69A

added the sum of Rs. 91,623/- (Rs. 69,623 + Rs. 22,000) to the total income of the assessee under the head income from other sources. 16. The aggrieved assessee preferred an appeal before the learned CIT(A) and submitted that impugned amount of interest income included ... included in the profit loss account and thereby same was offered to tax. Therefore, making the addition of the same under the head income from other sources will amount to double addition. 19. On the other hand, the learned DR vehemently supported the order of the authorities below. . Page

Rajkot District Co-Op. Banks Employees M P Credit Co-Op. Ltd., Rajkot vs. The DCIT/ACIT Cir 1(1), Rajkot

In the result, appeal of the assessee is allowed

ITA 885/RJT/2024[2020-21]Status: DisposedITAT Rajkot28 Feb 2025AY 2020-21

Bench: Dr. Arjun Lal Sainiand

For Appellant: Shri D. M. Rindani, Ld. ARFor Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Section 142(1)Section 143(3)Section 154Section 80(2)(d)Section 80P(2)(a)Section 80P(2)(d)

claimed “eas on Ws 80P(2)(d) of the Act, at Rs.18,41,436/-. The assessee has also sh _ < ‘ sho' inte m ead income from other sources, amount of Rs.52,350/-, as di idend " ; ; 52, -, ivi from Co-operative Bank and claimed the deduction ... business purpose, it invested same in specified securities and earned interest thereon. Therefore, interest earned by assessee would come in category of ‘Income from other sources' and taxable under section 56 of the Act and would not qualify for deduction as business income under section

Mukesh Maheshwari, Bhopal vs. ITO-1(4), Bhopal

The appeal is allowed for statistical purpose

ITA 592/IND/2024[2007-08]Status: DisposedITAT Indore28 Feb 2025AY 2007-08

Bench: Shri B.M. Biyani & Shri Udayan Das Guptaassessment Year:2007-08 Mukesh Maheshwari Ito 1(4) 5 Professor Colony, Bhopal बनाम/ Shyamla Hills Huzur Vs. Bhopal (Assessee/Appellant) (Revenue/Respondent) Pan: Apkpm 9563M Assessee By Shri Ashish Goyal & N.D. Patwa, Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 27.01.2025 Date Of Pronouncement 28.02.2025

Section 143(3)Section 250Section 54F

individual who has filed the return of income on 28.03.2008 declaring total income of Rs.7,52,330/-. The assessee has declared income from other sources amounting to Rs.1,36,552/- and LTCG at Rs.6,15,776/- ( after claiming exemption u/s 54F of the Act ). Subsequently, in course of assessment proceedings

M. P Police Sakh Sahkari Sanstha Maryadit Ujjain, Ujjain vs. Income Tax Officer -2(1), Ujjain

In the result appeal of the assessee is dismissed

ITA 192/IND/2024[2020-21]Status: DisposedITAT Indore28 Feb 2025AY 2020-21

Bench: Shri Manish Boradm.P. Police Sakh Sahakari Ito 2(1), Sanstha Maryadit, Ujjain 32Nd Battalion, Vs. Dewas Road Nagari, Ujjain (Appellant / Assessee) (Respondent/ Revenue) Pan: Aabam5551C Assessee By Shri Milind Wadhwani, Ar Revenue By Shri Ashish Porwal, Sr.Dr Date Of Hearing 27.02.2025 Date Of Pronouncement 28.02.2025 O R D E R

Section 143(3)Section 80P

erred in confirming the action of Ld. AO in treating the interest received from bank as Income From Other Sources and denying the benefit of deduction under section 80P of the Act 7. That on the facts and circumstances of the case and in law, The Ld. CIT(A) erred ... provisions of section 80P and therefore, the interest income earned by the appellant from such bank was liable for taxation under the head income from other sources. 8. That on the facts and circumstances and in law. The Ld. CIT(A) erred in confirming the action

U.P Housing & Development Board, Lucknow vs. Income Tax Officer-2(3), Lucknow

Accordingly all four additional grounds filed by the revenue in Appeal numbers 532 & 533 of 2014, stand dismissed

ITA 535/LKW/2014[2008-09]Status: DisposedITAT Lucknow28 Feb 2025AY 2008-09

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudhary

For Appellant: Ms. Shweta Mittal, C.AFor Respondent: Sh. G.C. Shrivastava, Special Counsel & Sh. Mazhar Akram, CIT (DR)
Section 11Section 12A

between the Government and its corporation could not have any effect on the taxability of the interest income which is deemed to be income from other sources in the hands of the assessee. The ld. CIT DR submitted that the said judgment could therefore not be a proper precedent

Shri Amardevi Nagari Sahakari Patsanstha, Pune vs. Income Tax Officer, Ward 9(3), Pune

In the result, the appeal of the assessee is allowed

ITA 2447/PUN/2024[2018-19]Status: DisposedITAT Pune28 Feb 2025AY 2018-19

Bench: SHRI R.K. PANDA, VICE PRESIDENT\nAND\nMS. ASTHA CHANDRA, JUDICIAL MEMBER\nआयकर अपील सं. / ITA Nos.2447/PUN/2024\nनिर्धारण वर्ष / Assessment Year: 2018-19\nShri Amardevi Nagari Sahakari\nPatsanstha,\nShelarwadi, Post Dehu Road, Tal –\nHaveli, 412101\nVs.\nITO, Ward – 9(3),\nPune\nPAN: AABAS5274L\nअपीलार्थी / Appellant\nप्रत्यर्थी / Respondent\nAssessee by :\nShri Nitin Rander (through\nvirtual)\nDepartment by :\nShri Ramnath P. Murkunde,\nDate of hearing :\n24-02-2025\nDate of\nPronouncement

For Appellant: Shri Nitin Rander (throughFor Respondent: Shri Ramnath P. Murkunde
Section 143(3)Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

operative Banks is 'not attributable' to the business activities of providing credit facilities to its members and treated the same as ‘o income from other sources' under the provision of section 56 of the Act. He therefore completed the assessment vide his order dated 19.04.2021 passed u/s.143

Nashik District Primary Teachers Co-Op Credit Society Ltd, Nashik vs. ITO Ward 1(1), Nashik

In the result, the appeal of the assessee in ITA No

ITA 2071/PUN/2024[2021-22]Status: DisposedITAT Pune28 Feb 2025AY 2021-22

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.2070 & 2071/Pun/2024 निर्धारण वर्ष / Assessment Years : 2018-19 & 2021-22 Nashik District Primary Teachers Co-Op Credit Society Ltd., Saraswati Complex, Malviya Chowk, Panchavatikaranja, Nashik-422002 Vs. Ito, Ward – 1(1), Nashik Pan: Aaaan2859D अपीलार्थी /Appellant प्रत्यर्थी / Respondent Assessee By : Shrisanket Joshi Department By : Shriramnath P. Murkunde Date Of Hearing : 31-12-2024 Date Of Pronouncement : 28-02-2025 आदेश / Order Per Astha Chandra, Jm : These Two Appeals Filed By The Assessee Is Directed Against The Two Separate Orders Both Dated 22.08.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)”] Pertaining To Assessment Year (“Ays”) 2018- 19 & 2021-22. Since The Issues Involved Are Identical The Same Were Heard Together & Are Disposed Of By This Common Order.

For Appellant: ShriSanket JoshiFor Respondent: ShriRamnath P. Murkunde
Section 143(1)Section 144Section 80PSection 80P(2)(a)

schedule bank or co-operative bank is the same. It is not a business income taxable u/s.28, but it is taxable as income from other sources u/s 56. ii) Only on such business income or operational income, deduction u/s 80P, can be allowed. Deduction u/s 80P cannot be allowed ... interest income ; which is not chargeable to tax under the head business income; but chargeable to tax under the head income from other sources. iii) Co-operative banks cannot be equated with co-operative societies. The words "co-operative banks are missing in clause (d) of sub-section