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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

Shri K. Palaniswami, Salem vs. DCIT, Central Circle-2(2), Chennai

The appeals of the revenue stand dismissed

ITA 215/CHNY/2023[2017-18]Status: DisposedITAT Chennai03 Apr 2024AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.125/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकरअपील सं./ Ita No.126/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकरअपील सं./ Ita No.127/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Karuppagounder Palaniswami बनाम 171/1B, Rajapuram 1St Street, Central Circle-2(2) / Vs. Chennai. Nedunchalai Nagar, Salem-636 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. आयकरअपील सं./ Ita No.213/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 5. आयकरअपील सं./ Ita No.214/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 6. आयकरअपील सं./ Ita No.215/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Karuppagounder Palaniswami Dcit 171/1B, Rajapuram 1St Street, Vs. Central Circle-2(2) Nedunchalai Nagar, Salem-636 004. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P ((अपीलाथ"/Appellant)) : (!"थ" / Respondent)

For Appellant: Shri Sushil Kumar (Advocate) - Ld. ARFor Respondent: Shri V. Nandakumar (CIT) - Ld. DR
Section 132(4)Section 143(3)

Lacs as allegedly written against the name of the assessee in the note books was added to the income of the assessee as ‘income from other sources’ and assessment was concluded. 4.5 The substantive observations of Ld. AO, while making the impugned addition, were as under: - (i) The denial ... understood that, the assessee has received the payments mentioned as stated above. Accordingly, Rs.12,00,00,000/- is added as income from other sources to the total income of the assessee for the year. 4.6 The additions were made on similar lines while framing the assessments

Shri K. Palaniswami, Salem vs. DCIT, Central Circle-2(2), Chennai

The appeals of the revenue stand dismissed

ITA 214/CHNY/2023[2016-17]Status: DisposedITAT Chennai03 Apr 2024AY 2016-17

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.125/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकरअपील सं./ Ita No.126/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकरअपील सं./ Ita No.127/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Karuppagounder Palaniswami बनाम 171/1B, Rajapuram 1St Street, Central Circle-2(2) / Vs. Chennai. Nedunchalai Nagar, Salem-636 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. आयकरअपील सं./ Ita No.213/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 5. आयकरअपील सं./ Ita No.214/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 6. आयकरअपील सं./ Ita No.215/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Karuppagounder Palaniswami Dcit 171/1B, Rajapuram 1St Street, Vs. Central Circle-2(2) Nedunchalai Nagar, Salem-636 004. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P ((अपीलाथ"/Appellant)) : (!"थ" / Respondent)

For Appellant: Shri Sushil Kumar (Advocate) - Ld. ARFor Respondent: Shri V. Nandakumar (CIT) - Ld. DR
Section 132(4)Section 143(3)

Lacs as allegedly written against the name of the assessee in the note books was added to the income of the assessee as ‘income from other sources’ and assessment was concluded. 4.5 The substantive observations of Ld. AO, while making the impugned addition, were as under: - (i) The denial ... understood that, the assessee has received the payments mentioned as stated above. Accordingly, Rs.12,00,00,000/- is added as income from other sources to the total income of the assessee for the year. 4.6 The additions were made on similar lines while framing the assessments

Shri K. Palaniswami, Salem vs. DCIT, Central Circle-2(2), Chennai

The appeals of the revenue stand dismissed

ITA 213/CHNY/2023[2015-16]Status: DisposedITAT Chennai03 Apr 2024AY 2015-16

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.125/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकरअपील सं./ Ita No.126/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकरअपील सं./ Ita No.127/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Karuppagounder Palaniswami बनाम 171/1B, Rajapuram 1St Street, Central Circle-2(2) / Vs. Chennai. Nedunchalai Nagar, Salem-636 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. आयकरअपील सं./ Ita No.213/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 5. आयकरअपील सं./ Ita No.214/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 6. आयकरअपील सं./ Ita No.215/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Karuppagounder Palaniswami Dcit 171/1B, Rajapuram 1St Street, Vs. Central Circle-2(2) Nedunchalai Nagar, Salem-636 004. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P ((अपीलाथ"/Appellant)) : (!"थ" / Respondent)

For Appellant: Shri Sushil Kumar (Advocate) - Ld. ARFor Respondent: Shri V. Nandakumar (CIT) - Ld. DR
Section 132(4)Section 143(3)

Lacs as allegedly written against the name of the assessee in the note books was added to the income of the assessee as ‘income from other sources’ and assessment was concluded. 4.5 The substantive observations of Ld. AO, while making the impugned addition, were as under: - (i) The denial ... understood that, the assessee has received the payments mentioned as stated above. Accordingly, Rs.12,00,00,000/- is added as income from other sources to the total income of the assessee for the year. 4.6 The additions were made on similar lines while framing the assessments

DCIT, Central Circle-2(2), Chennai vs. Shri K. Palaniswami, Salem

The appeals of the revenue stand dismissed

ITA 127/CHNY/2023[2017-18]Status: DisposedITAT Chennai03 Apr 2024AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.125/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकरअपील सं./ Ita No.126/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकरअपील सं./ Ita No.127/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Karuppagounder Palaniswami बनाम 171/1B, Rajapuram 1St Street, Central Circle-2(2) / Vs. Chennai. Nedunchalai Nagar, Salem-636 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. आयकरअपील सं./ Ita No.213/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 5. आयकरअपील सं./ Ita No.214/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 6. आयकरअपील सं./ Ita No.215/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Karuppagounder Palaniswami Dcit 171/1B, Rajapuram 1St Street, Vs. Central Circle-2(2) Nedunchalai Nagar, Salem-636 004. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P ((अपीलाथ"/Appellant)) : (!"थ" / Respondent)

For Appellant: Shri Sushil Kumar (Advocate) - Ld. ARFor Respondent: Shri V. Nandakumar (CIT) - Ld. DR
Section 132(4)Section 143(3)

Lacs as allegedly written against the name of the assessee in the note books was added to the income of the assessee as ‘income from other sources’ and assessment was concluded. 4.5 The substantive observations of Ld. AO, while making the impugned addition, were as under: - (i) The denial ... understood that, the assessee has received the payments mentioned as stated above. Accordingly, Rs.12,00,00,000/- is added as income from other sources to the total income of the assessee for the year. 4.6 The additions were made on similar lines while framing the assessments

DCIT, Central Circle-2(2), Chennai vs. Shri K. Palaniswami, Salem

The appeals of the revenue stand dismissed

ITA 126/CHNY/2023[2016-17]Status: DisposedITAT Chennai03 Apr 2024AY 2016-17

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.125/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकरअपील सं./ Ita No.126/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकरअपील सं./ Ita No.127/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Karuppagounder Palaniswami बनाम 171/1B, Rajapuram 1St Street, Central Circle-2(2) / Vs. Chennai. Nedunchalai Nagar, Salem-636 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. आयकरअपील सं./ Ita No.213/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 5. आयकरअपील सं./ Ita No.214/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 6. आयकरअपील सं./ Ita No.215/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Karuppagounder Palaniswami Dcit 171/1B, Rajapuram 1St Street, Vs. Central Circle-2(2) Nedunchalai Nagar, Salem-636 004. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P ((अपीलाथ"/Appellant)) : (!"थ" / Respondent)

For Appellant: Shri Sushil Kumar (Advocate) - Ld. ARFor Respondent: Shri V. Nandakumar (CIT) - Ld. DR
Section 132(4)Section 143(3)

Lacs as allegedly written against the name of the assessee in the note books was added to the income of the assessee as ‘income from other sources’ and assessment was concluded. 4.5 The substantive observations of Ld. AO, while making the impugned addition, were as under: - (i) The denial ... understood that, the assessee has received the payments mentioned as stated above. Accordingly, Rs.12,00,00,000/- is added as income from other sources to the total income of the assessee for the year. 4.6 The additions were made on similar lines while framing the assessments

DCIT, Central Circle-2(2), Chennai vs. Shri K. Palaniswami, Salem

The appeals of the revenue stand dismissed

ITA 125/CHNY/2023[2015-16]Status: DisposedITAT Chennai03 Apr 2024AY 2015-16

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपील सं./ Ita No.125/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 2. आयकरअपील सं./ Ita No.126/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 3. आयकरअपील सं./ Ita No.127/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) Dcit Shri Karuppagounder Palaniswami बनाम 171/1B, Rajapuram 1St Street, Central Circle-2(2) / Vs. Chennai. Nedunchalai Nagar, Salem-636 004. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. आयकरअपील सं./ Ita No.213/Chny/2023 (िनधा"रण वष" / Assessment Year: 2015-16) & 5. आयकरअपील सं./ Ita No.214/Chny/2023 (िनधा"रण वष" / Assessment Year: 2016-17) & 6. आयकरअपील सं./ Ita No.215/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) बनाम/ Shri Karuppagounder Palaniswami Dcit 171/1B, Rajapuram 1St Street, Vs. Central Circle-2(2) Nedunchalai Nagar, Salem-636 004. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ayxpp-6611-P ((अपीलाथ"/Appellant)) : (!"थ" / Respondent)

For Appellant: Shri Sushil Kumar (Advocate) - Ld. ARFor Respondent: Shri V. Nandakumar (CIT) - Ld. DR
Section 132(4)Section 143(3)

Lacs as allegedly written against the name of the assessee in the note books was added to the income of the assessee as ‘income from other sources’ and assessment was concluded. 4.5 The substantive observations of Ld. AO, while making the impugned addition, were as under: - (i) The denial ... understood that, the assessee has received the payments mentioned as stated above. Accordingly, Rs.12,00,00,000/- is added as income from other sources to the total income of the assessee for the year. 4.6 The additions were made on similar lines while framing the assessments

DCIT, Central Circle-2.4, Chennai vs. Shri P. Rama Mohan Rao, Chennai

Accordingly, cross- objections for AYs 2015-16 and 2016-17 stands dismissed

ITA 225/CHNY/2023[2017-18]Status: DisposedITAT Chennai02 Apr 2024AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jmand Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.223/Chny/2023 (िनधा"रणवष" / Assessment Year: 2015-16) & 2. आयकरअपीलसं./ Ita No.224/Chny/2023 (िनधा"रणवष" / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ Ita No.225/Chny/2023 (िनधा"रणवष" / Assessment Year: 2017-18) Dcit Shri P. Rama Mohan Rao बनाम Central Circle-2(4) No.17/184, Y Block, First Street, 6Th Main Road, Anna Nagar, Chennai. / Vs. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aafpr-2074-N (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. Cross Objection No.10/Chny/2023 (In Ita No.223/Chny/2023) (िनधा"रण वष" / Assessment Year: 2015-16) & 5. Cross Objection No.11/Chny/2023 (In Ita No.224/Chny/2023) (िनधा"रण वष" / Assessment Year: 2016-17) & 6. Cross Objection No.12/Chny/2023 (In Ita No.225/Chny/2023) (िनधा"रण वष" / Assessment Year: 2017-18 बनाम/ Dcit Shri P. Rama Mohan Rao No.17/184, Y Block, First Street, Central Circle-1(4)

For Appellant: Shri Y. Sridhar (FCA)-Ld. ARFor Respondent: Shri V. Nandakumar (CIT)- Ld. DR
Section 144

including various judicial pronouncements as cited before us, our adjudication would be as under. The assesseebeinga resident individual derived income from salary and income from other sources. An assessment was framed against the assessee for AY 2015-16 u/s 144 r.w.s. 153C of the Act on 26-12-2018 wherein

DCIT, Central Circle-2.4, Chennai vs. Shri P. Rama Mohan Rao, Chennai

Accordingly, cross- objections for AYs 2015-16 and 2016-17 stands dismissed

ITA 224/CHNY/2023[2016-17]Status: DisposedITAT Chennai02 Apr 2024AY 2016-17

Bench: Hon’Ble Shri V. Durga Rao, Jmand Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.223/Chny/2023 (िनधा"रणवष" / Assessment Year: 2015-16) & 2. आयकरअपीलसं./ Ita No.224/Chny/2023 (िनधा"रणवष" / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ Ita No.225/Chny/2023 (िनधा"रणवष" / Assessment Year: 2017-18) Dcit Shri P. Rama Mohan Rao बनाम Central Circle-2(4) No.17/184, Y Block, First Street, 6Th Main Road, Anna Nagar, Chennai. / Vs. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aafpr-2074-N (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. Cross Objection No.10/Chny/2023 (In Ita No.223/Chny/2023) (िनधा"रण वष" / Assessment Year: 2015-16) & 5. Cross Objection No.11/Chny/2023 (In Ita No.224/Chny/2023) (िनधा"रण वष" / Assessment Year: 2016-17) & 6. Cross Objection No.12/Chny/2023 (In Ita No.225/Chny/2023) (िनधा"रण वष" / Assessment Year: 2017-18 बनाम/ Dcit Shri P. Rama Mohan Rao No.17/184, Y Block, First Street, Central Circle-1(4)

For Appellant: Shri Y. Sridhar (FCA)-Ld. ARFor Respondent: Shri V. Nandakumar (CIT)- Ld. DR
Section 144

including various judicial pronouncements as cited before us, our adjudication would be as under. The assesseebeinga resident individual derived income from salary and income from other sources. An assessment was framed against the assessee for AY 2015-16 u/s 144 r.w.s. 153C of the Act on 26-12-2018 wherein

DCIT, Central Circle-2.4, Chennai vs. Shri P. Rama Mohan Rao, Chennai

Accordingly, cross- objections for AYs 2015-16 and 2016-17 stands dismissed

ITA 223/CHNY/2023[2015-16]Status: DisposedITAT Chennai02 Apr 2024AY 2015-16

Bench: Hon’Ble Shri V. Durga Rao, Jmand Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.223/Chny/2023 (िनधा"रणवष" / Assessment Year: 2015-16) & 2. आयकरअपीलसं./ Ita No.224/Chny/2023 (िनधा"रणवष" / Assessment Year: 2016-17) & 3. आयकरअपीलसं./ Ita No.225/Chny/2023 (िनधा"रणवष" / Assessment Year: 2017-18) Dcit Shri P. Rama Mohan Rao बनाम Central Circle-2(4) No.17/184, Y Block, First Street, 6Th Main Road, Anna Nagar, Chennai. / Vs. Chennai-600 040. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aafpr-2074-N (अपीलाथ"/Appellant) : (!"थ" / Respondent) & 4. Cross Objection No.10/Chny/2023 (In Ita No.223/Chny/2023) (िनधा"रण वष" / Assessment Year: 2015-16) & 5. Cross Objection No.11/Chny/2023 (In Ita No.224/Chny/2023) (िनधा"रण वष" / Assessment Year: 2016-17) & 6. Cross Objection No.12/Chny/2023 (In Ita No.225/Chny/2023) (िनधा"रण वष" / Assessment Year: 2017-18 बनाम/ Dcit Shri P. Rama Mohan Rao No.17/184, Y Block, First Street, Central Circle-1(4)

For Appellant: Shri Y. Sridhar (FCA)-Ld. ARFor Respondent: Shri V. Nandakumar (CIT)- Ld. DR
Section 144

including various judicial pronouncements as cited before us, our adjudication would be as under. The assesseebeinga resident individual derived income from salary and income from other sources. An assessment was framed against the assessee for AY 2015-16 u/s 144 r.w.s. 153C of the Act on 26-12-2018 wherein