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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

Gurgaon One Resident Welfare Association, Gurgaon vs. ITO-Ward 1(5), Gurgaon

In the result appeal of the assessee is allowed

ITA 4145/DEL/2025[2017-18]Status: DisposedITAT Delhi13 Mar 2026AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumarita No.4145/Del/2025 (Assessment Year 2017-18) Gurgaon One Resident Welfare Income Tax Officer, Association, Ward-1(5), Gurgaon. Sector-22, Mullahera, Vs. Old Delhi Gurgaon Road, Gurgaon-122015, Haryana. Pan-Aaaag5591K (Appellant) (Respondent) Assessee By Shri M.R. Sahu, Ca Shri Manish Gupta, Sr. Dr. Department By Date Of Hearing 09.03.2026 Date Of Pronouncement 13.03.2026 O R D E R Per Vimal Kumar, Jm: The Appeals Filed By The Assessee Are Against Orders Dated 13.06.2025 Of The Learned Commissioner Of Income Tax (Appeals)-Mumbai [Hereinafter Referred To As ‘The Ld. Cit(A)’] Passed U/S 250 Of The Income Tax Act, 1961, [Hereinafter Referred To As ‘The Act’] Arising Out Of Assessment Orders Dated 28.12.2018 & 13.11.2019 Of Ld. Assessing Officer, Ward-1(5), Gurgaon For Assessment Years 2016-17 & 2017-18 Respectively. Gurgaon One Resident Welfare Association Vs. Ito

Section 124(3)(a)Section 142(1)Section 143(2)Section 250Section 57

rightly contended by the learned AR Section 40 (ba) is applicable while computing business income. This clause is not applicable while computing income from other sources. There is no prohibition in Section 57 (iii) under which deduction of interest is eligible to the assessee society. 11. Accordingly, we direct

Gurgaon One Resident Welfare Association, Gurgaon vs. ITO-Ward 1(5)-Gurgaon, Gurgaon

In the result appeal of the assessee is allowed

ITA 4144/DEL/2025[2016-17]Status: DisposedITAT Delhi13 Mar 2026AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumarita No.4145/Del/2025 (Assessment Year 2017-18) Gurgaon One Resident Welfare Income Tax Officer, Association, Ward-1(5), Gurgaon. Sector-22, Mullahera, Vs. Old Delhi Gurgaon Road, Gurgaon-122015, Haryana. Pan-Aaaag5591K (Appellant) (Respondent) Assessee By Shri M.R. Sahu, Ca Shri Manish Gupta, Sr. Dr. Department By Date Of Hearing 09.03.2026 Date Of Pronouncement 13.03.2026 O R D E R Per Vimal Kumar, Jm: The Appeals Filed By The Assessee Are Against Orders Dated 13.06.2025 Of The Learned Commissioner Of Income Tax (Appeals)-Mumbai [Hereinafter Referred To As ‘The Ld. Cit(A)’] Passed U/S 250 Of The Income Tax Act, 1961, [Hereinafter Referred To As ‘The Act’] Arising Out Of Assessment Orders Dated 28.12.2018 & 13.11.2019 Of Ld. Assessing Officer, Ward-1(5), Gurgaon For Assessment Years 2016-17 & 2017-18 Respectively. Gurgaon One Resident Welfare Association Vs. Ito

Section 124(3)(a)Section 142(1)Section 143(2)Section 250Section 57

rightly contended by the learned AR Section 40 (ba) is applicable while computing business income. This clause is not applicable while computing income from other sources. There is no prohibition in Section 57 (iii) under which deduction of interest is eligible to the assessee society. 11. Accordingly, we direct

Vaneet Aggarwal, New Delhi vs. ACIT, Circle-14(2), New Delhi

In the result, appeal of the Assessee is dismissed

ITA 2607/DEL/2019[2015-16]Status: DisposedITAT Delhi13 Mar 2026AY 2015-16

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumar

Section 10(38)Section 143(1)Section 143(2)Section 69ASection 69C

Director in M/s. KTV Projects Pvt. Ltd. and received salary from the same. Further, the assessee declared income from capital gain and income from other sources during the year under consideration. In response to the above notices, Ld. AR of the assessee attended the proceedings and submitted the relevant information

Rajmata Kaviteshwari Devi, Satna vs. Incometax Officer, Satna

ITA 107/JAB/2024[2014-15]Status: DisposedITAT Jabalpur12 Mar 2026AY 2014-15

Bench: Shri Kul Bharat & Shri Anadee Nath Misshra

Section 144Section 147Section 254Section 264

filed by the appellant and determining the stamp duty value of Rs. 1,54,00,000/- on sale of land as income from other sources, when the transaction in capital asset called for assessment of capital gains tax only and when all the details are available with the lower authorities

Shri Durdundeshwar Urban Credit Souhard Sahakari Nyt, Belagavi vs. Income Tax Officer, Ward - 1, Gokak

Appeals are allowed for statistical purposes

ITA 311/PAN/2025[2017-18]Status: DisposedITAT Panaji12 Mar 2026AY 2017-18

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita No. 306 To 307 & 311/Pan/2025 Assessment Year : 2017-18 & 2020-21 Shri Durdundeshwar Urban Credit Souhard Sahakari Niyamita Subhash Road, Sankeshwar Belagavi-591313 Pan:Aaaas5612D . . . . . . . Appellant

For Appellant: NoneFor Respondent: Ms Rijula Uniyal [‘Ld. DR’]
Section 143(3)Section 246ASection 250Section 270ASection 80PSection 80P(2)

total interest received by the assessee from its investment held with co-operative banks as income of the assessee under the head income from other sources. ITA No. 307/PAN/2025 AY 2020-21 6. Similarly for the year under consideration the assessee’s return filed on 08/12/2020 declaring an income

Shri Durdundeshwar Urban Credit Souhard Sahakari Nyt, Belagavi vs. Income Tax Officer, Ward - 1, Gokak

Appeals are allowed for statistical purposes

ITA 307/PAN/2025[2020-21]Status: DisposedITAT Panaji12 Mar 2026AY 2020-21

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita No. 306 To 307 & 311/Pan/2025 Assessment Year : 2017-18 & 2020-21 Shri Durdundeshwar Urban Credit Souhard Sahakari Niyamita Subhash Road, Sankeshwar Belagavi-591313 Pan:Aaaas5612D . . . . . . . Appellant

For Appellant: NoneFor Respondent: Ms Rijula Uniyal [‘Ld. DR’]
Section 143(3)Section 246ASection 250Section 270ASection 80PSection 80P(2)

total interest received by the assessee from its investment held with co-operative banks as income of the assessee under the head income from other sources. ITA No. 307/PAN/2025 AY 2020-21 6. Similarly for the year under consideration the assessee’s return filed on 08/12/2020 declaring an income

Shri Durdundeshwar Urban Credit Souhard Sahakari Nyt, Belagavi vs. Income Tax Officer, Ward -1, Gokak

Appeals are allowed for statistical purposes

ITA 306/PAN/2025[2020-21]Status: DisposedITAT Panaji12 Mar 2026AY 2020-21

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita No. 306 To 307 & 311/Pan/2025 Assessment Year : 2017-18 & 2020-21 Shri Durdundeshwar Urban Credit Souhard Sahakari Niyamita Subhash Road, Sankeshwar Belagavi-591313 Pan:Aaaas5612D . . . . . . . Appellant

For Appellant: NoneFor Respondent: Ms Rijula Uniyal [‘Ld. DR’]
Section 143(3)Section 246ASection 250Section 270ASection 80PSection 80P(2)

total interest received by the assessee from its investment held with co-operative banks as income of the assessee under the head income from other sources. ITA No. 307/PAN/2025 AY 2020-21 6. Similarly for the year under consideration the assessee’s return filed on 08/12/2020 declaring an income

Kaushal Hazarilal Agrawal, Vadodara vs. The Dy.CIT, Central Circle-1, Vadodara

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

ITA 7/AHD/2026[2017-18]Status: DisposedITAT Ahmedabad12 Mar 2026AY 2017-18

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

For Appellant: Shri Karan Bakshi, AdvocateFor Respondent: Shri C Dharani Nath, Sr. DR
Section 142(1)Section 143(3)Section 144Section 148Section 263Section 57

Income Tax examined the assessment records and noticed that the assessee had shown interest income of ₹1,12,58,938/- under the head “Income from Other Sources” and had claimed deduction of ₹58,51,028/- under section 57 of the Act towards interest expenditure comprising interest paid to partnership firms

Shri Govardhan Nataji Pushti Margiya Vaishnab Haveli, Dahod vs. The ITO, Ward-1, Dahod

The appeal of the assessee is treated as allowed for statistical purposes

ITA 2689/AHD/2025[2019-20]Status: DisposedITAT Ahmedabad12 Mar 2026AY 2019-20

Bench: Shri Sanjay Gargआयकर अपील सं /Ita No.2689/Ahd/2025 िनधा"रण वष" /Assessment Year : 2019-20 Shri Govardhan Nataji Pushti The Ito बनाम Margiya Vaishnab Haveli Ward-1 / Janta Chowk Dahod – 389 151 V/S. Desai Wada Dahod Gujarat – 389 151 "थायी लेखा सं./Pan: Aaats 7386 K (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri Kunal Shangvi, Ar Revenue By : Shri Suresh Chand Meena, Sr.Dr सुनवाई की तारीख/Date Of Hearing : 17/02/2026 घोषणा की तारीख /Date Of Pronouncement: 12/03/2026 आदेश/O R D E R

For Appellant: Shri Kunal Shangvi, ARFor Respondent: Shri Suresh Chand Meena, Sr.DR
Section 11Section 12ASection 250

action of the Ld. CIT(A) in confirming the additions made by the Assessing Officer (AO) of Rs.14,50,179/- as income from other sources and of Rs.11,99,688/- on account of donation and rental income, tatalling to Rs.26,49,867/-. Shri Govardhan Nataji Pushti Margiya Vaishnab Haveli

Narayanlal Bhanaji Prajapati, Ahmedabad vs. The ACIT, Central Circle-2(3), Ahmedabad

Accordingly, the appeal filed by the assessee is dismissed

ITA 588/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad12 Mar 2026AY 2021-22

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

For Appellant: Shri Hardik Vora, ARFor Respondent: Ms. Pallavi, CIT-DR & Shri Rameshwar P
Section 115BSection 132Section 153CSection 68

Year 2021-22 declaring total income of ₹8,44,560/-. The assessee had shown income from house property, business income, capital gains and income from other sources. During the year, the assessee had also declared brokerage income of ₹3,00,000/- and commission income of ₹2,65,000/-. A search

Vineet Tiwari, Bangalore vs. Circle 12, Pune

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 3169/PUN/2025[2016-17]Status: DisposedITAT Pune12 Mar 2026AY 2016-17

Bench: Shri R. K. Panda & Shri Vinay Bhamore

For Appellant: Shri Santanu Kumar Sarangi (virtual)For Respondent: Shri Rajesh Gawali, Addl CIT DR
Section 142(1)Section 147Section 148Section 148ASection 151Section 192Section 250Section 271(1)(c)

wherein he made the following additions: a) Salary received from the employer during the year as per TDS details Rs.63,57,095/- b) Income from other sources being Credit card payment during the year Rs.8,51,621/- c) Interest received from HDFC Bank Rs.35,739/- Rs.72,44,455/- Total

Vineet Tiwari, Bengaluru vs. Circle 12, Pune

In the result, both the appeals filed by the assessee are allowed for statistical purposes

ITA 3168/PUN/2025[2016-17]Status: DisposedITAT Pune12 Mar 2026AY 2016-17

Bench: Shri R. K. Panda & Shri Vinay Bhamore

For Appellant: Shri Santanu Kumar Sarangi (virtual)For Respondent: Shri Rajesh Gawali, Addl CIT DR
Section 142(1)Section 147Section 148Section 148ASection 151Section 192Section 250Section 271(1)(c)

wherein he made the following additions: a) Salary received from the employer during the year as per TDS details Rs.63,57,095/- b) Income from other sources being Credit card payment during the year Rs.8,51,621/- c) Interest received from HDFC Bank Rs.35,739/- Rs.72,44,455/- Total

Mundaganamane Group Gramagala Seva Sahakari Sangha Niyamit Mundaganamane, Sirsi vs. Income Tax Officer, Ward-1, Sirsi

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

ITA 2843/BANG/2025[2020-21]Status: DisposedITAT Bangalore12 Mar 2026AY 2020-21

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2020-21

For Appellant: Ms. Smitha, CAFor Respondent: Shri Ganesh R Ghale, Advocate – Standing
Section 250Section 80P

income of Rs. Rs. 30,0,737/- & Rs. 2,24,485/- respectively and added the same to total income of the assessee as income from other sources. 6. The aggrieved assessee preferred an appeal before the learned CIT(A) who dismissed the appeal in ex parte order by observing that ... respect of interest income of Rs. 30,00,737 and dividend income of Rs. 2,24,485 by treating the same as income from other sources. 8.1 The learned AR submitted that the assessee had filed an appeal before the learned CIT(A) challenging the said disallowance. However, the learned

Udaya Souharda Co-Operative Society Limited, Bangalore vs. Income Tax Officer Ward-5(1)(1), Bangalore

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

ITA 2472/BANG/2025[2020-21]Status: DisposedITAT Bangalore12 Mar 2026AY 2020-21

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2020-21

For Appellant: Shri Tharun Kothari, CAFor Respondent: Shri Subramanian, JCIT (DR)
Section 57Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

claimed deduction under section 80P(2)(a)(i) of the Act. The AO, however, treated the said interest income as income from other sources and denied the deduction. The learned CIT(A) upheld the action of the Assessing Officer. 7.1 The learned AR contended that the authorities below failed ... learned AR also submitted that the Assessing Officer has assessed the interest income under the head “Income from other sources” without allowing the corresponding cost of funds incurred by the assessee. It was argued that the assessee incurred expenditure on deposits received and maintained in banks and therefore such expenditure

Shri. Shanthisagar Co Op Credit Society Limited, Hubli vs. Income Tax Officer, Ward-2(1), Hubli

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

ITA 2081/BANG/2025[2017-18]Status: DisposedITAT Bangalore12 Mar 2026AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2017-18

For Appellant: Smt. Harsha J, AdvocateFor Respondent: Shri Ganesh R Ghale, Advocate – Standing
Section 250Section 80PSection 80P(2)(a)Section 80P(2)(d)

surplus funds and not income derived from providing credit facilities to members. It was contended that such income is assessable under the head “Income from other sources” and not eligible for deduction under section 80P(2)(a)(i), relying on the judgment of the Hon’ble Supreme Court in Totgars ... investment by an ordinary investor, hence, interest on such investment has got to be taxed under the head "Income from other sources". The finding of the AO was confirmed by the Tribunal as well by the Hon’ble Karnataka High Court. The dispute reached to the Hon’ble Supreme Court

Hanumaiah Ranjan, Bangalore vs. Income Tax Officer, Ward-3(3)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 1890/BANG/2025[2017-18]Status: DisposedITAT Bangalore12 Mar 2026AY 2017-18

Bench: Shri Waseem Ahmedassessment Year: 2017-18

For Appellant: Ms. Richa Backiwala, CAFor Respondent: Shri Ganesh R Ghale – Advocate, Standing
Section 115BSection 250Section 44ASection 69A

subjected AY by offering an income of Rs. 2,98,000 only which was comprising of salary income and income from other sources. During the course of the assessment proceedings, the assessee explained that the cash deposited in the bank comprised Rs. 7,00,000 received from contractual/ trading receipts

Sree Cauvery Souharda Credit Sahakari Sangha Niyamitha, Bengaluru vs. Income Tax Officer Ward 1(1)(1), Bengaluru

ITA 1854/BANG/2025[2018-19]Status: DisposedITAT Bangalore12 Mar 2026AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Smt. Sumana, CAFor Respondent: Shri Subramanian, JCIT (DR
Section 10Section 250Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

funds as, by way of, investment by an ordinary investor, hence, interest on such investment has got to be taxed under the head "Income from other sources". The finding of the AO was confirmed by the Tribunal as well by the Hon’ble Karnataka High Court. The dispute reached ... taxed as business income under section 28 of the Act? In our view, such interest income would come in the category of "Income from other sources", hence, such interest income would be taxable under section 56 of the Act, as rightly held by the Assessing Officer. In this connection

Sri Guru Ramalingeshwara Souharda Pattina Sahakari Niyamitha, Maski vs. Pr. Commissioner of Income Tax, Hubli

In the result, the appeal of the assessee is hereby allowed

ITA 1174/BANG/2025[2020-21]Status: DisposedITAT Bangalore12 Mar 2026AY 2020-21

Bench: Shri Waseem Ahmed & Shri Soundararajan Kassessment Year: 2020-21

For Appellant: Shri Ravishankar, AdvocateFor Respondent: Shri Muthu Shankar, JCIT (DR)
Section 143(3)Section 263Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

operative Sale Society Ltd. vs. ITO (322 ITR 283), interest earned on surplus funds deposited with banks is taxable under the head “Income from Other Sources” under section 56 of the Act and not as business income. Therefore, such income is not eligible for deduction under section ... Court in Totgars Co-operative Sale Society Ltd. has clearly stated that interest earned from deposits with banks is taxable under the head “Income from Other Sources.” 5.1 The PCIT also relied on the decision of the Karnataka High Court in PCIT vs. Totagars Co-operative Sale Society (2017) which

The Camp Multipurpose Primary Agriculture Cooperative Society Limited, Pernem, Goa vs. Income Tax Officer, Ward 2 (1), Panaji, Goa

In the result, the appeal filed by the assessee is partly allowed

ITA 55/PAN/2026[2016-17]Status: DisposedITAT Panaji11 Mar 2026AY 2016-17

Bench: SHRI PAVAN KUMAR GADALE (Judicial Member)

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

investment in non-SLR securities need to be disallowed u/s 57(i) of the Act as interest on non-SLR securities is income from other sources." 2. Clause (id) of sub-section (1) of Section 56 of the Act provides that income by way of interest on securities shall ... chargeable to income tax under the head "Income from Other Sources", if, the income is not chargeable to income-tax under the head "Profits and Gains of Business and Profession". 3. The matter has been examined in light of the judicial decisions on this issue. In the case

Vibhuti Krunal Patel, Sabarmati vs. ITO Ward 2(1)(2) Ahmedabad, Vejalpur

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

ITA 1369/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad11 Mar 2026AY 2015-16

Bench: Dr. B.R.R. Kumar, Vice-Shri Tr Senthil Kumar

For Appellant: Shri Vivek Chavda, ARFor Respondent: Shri Abhijit, Sr. DR
Section 115BSection 147Section 148

Assessment Year 2015-16. 2. The assessee has raised the following grounds of appeal: 1.1 The appellant is an Individual and mainly earning income from other sources & Capital gains. She had filed not filed his return of income as his income was below taxable limits. Asst. Year