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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

The Modasa Dhansura Taluka Teachers Co.Op. Credit Society Ltd., Arvalli vs. The ACIT, Hmt Circle, Himatnagar Present Jurisdiction the Dy.CIT, Circle-2(1)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1478/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad28 Oct 2024AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.1478/Ahd/2024 िनधा"रण वष" /Assessment Year : 2017-18 The Modasa Dhansura Taluka The Acit बनाम/ Teachers Co-Op.Credit Hmt Circle, Himatnagar V/S. Society Ltd. Present Jurisdiction - S/43, 2Nd Floor The Dy.Cit, Circle-2(1)(1) Shyam Sunder Complex Ahmedabad – 380 015 Station Road, At & Po Modasa Ta. Modasa Aravalli 383 315 (Gujarat) "थायी लेखा सं./Pan:Aabat 2852 M अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee By : Shri Dhinal Shah, Ar Revenue By : Shri V.K. Mangla, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 16/10/2024 घोषणा की तारीख /Date Of Pronouncement: 28/10/2024 आदेश/O R D E R Per Makarand V. Mahadeokar, Am:

For Appellant: Shri Dhinal Shah, ARFor Respondent: Shri V.K. Mangla, Sr.DR
Section 143(2)Section 143(3)Section 250Section 56Section 80PSection 80P(2)(d)Section 80P(4)

that interest earned from investments in banks is not attributable to the Co-operative Society's primary activities and is therefore taxable as income from other sources The Modasa Dhansura Taluka Teachers Co-op.Credit Society Ltd. vs. ACIT, HMT Circle (Present Jurisdiction DCIT Circle-2(1)(1), Ahmedabad Asst. Year ... situation, where surplus funds were invested in fixed deposits with nationalized banks, and the interest earned was held to be taxable as income from other sources. However, the facts of the present case are distinguishable, as the interest in question has been earned from deposits made with a Co-operative

N.D.A. Employees Co. Op. Credit Society Limited, Pune vs. ITO Ward 6(1) Pune, Pune

In the result, appeal of the assessee is allowed

ITA 1832/PUN/2024[2020-21]Status: DisposedITAT Pune28 Oct 2024AY 2020-21

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपील सं. / Ita No.1832/Pun/2024 िनधा"रण वष" / Assessment Year: 2020-21 N.D.A. Employees Co. Op. V The Income Tax Officer, Credit Society Limited, S Ward-6(1), Pune. Khadakwasala, Warje Malwadi, Pune – 411023. Pan: Aaaan0953C Appellant / Assessee Respondent / Revenue Assessee By Shri Satish Nade – Ar Revenue By Shri B S Rajpurohit – Addl.Cit(Dr) Date Of Hearing 28/10/2024 Date Of Pronouncement 28/10/2024 आदेश/ Order Per Dr.Dipak P.Ripote, Am : This Appeal Filed By The Assessee Is Against The Order Of Ld.Commissioner Of Income Tax(Appeal)[Nfac], Under Section 250 Of The Income Tax Act, 1961 Dated 11.07.2024 For The Assessment Year 2020-21. The Assessee Has Raised The Following Grounds Of Appeal : “The Appellant Would Like To Object The Impugned Appeal Order Of The Commissioner Of Income L Av (Appeals). M Ac On The Following Grounds Of Appeal, Which Are Raised Without Prejudiced To Each Other. “1) In The Facts & Circumstances Of The Case & In Law. The Ld.Commissioner Of Income L Ax (Appeals), Nfac Has Not Justified In Upholding The Assessing Officer'S Finding That The Interest & Dividend Earned From The Funds Invested In Pune District Central Co- Operative Bank Ltd (Pdc T Bank Ltd) Of 34,65,724/- Was Not Eligible For Deduction Us 80P(A)(2)(I) Of The Income Tax Act As The Said Income Was Not Business Income But Was Income From Other Sources.

Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

eligible for deduction us 80P(a)(2)(i) of the Income Tax Act as the said income was not business income but was income from other sources. 2) In the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals). NFAC has grossly erred ... Rs.34,65.724/- was eligible for deduction u/s 80P(2)(d) of the Income Tax Vet.1961, even though the said income is taxed as income from other sources, as held In Hon'ble Apex Court of India in the case of Totagars Co-operative Sale Society vs. fTO in 188 tavmann.com