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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

ACIT, Circle-7(2), New Delhi vs. Drishti Soft Solutiions Private Limited, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 8523/DEL/2019[2016-17]Status: DisposedITAT Delhi10 Feb 2023AY 2016-17

Bench: Sh. Anil Chaturvedi & Sh. Yogesh Kumar Usacit Vs. Drishti Soft Solutions Pvt. Circle – 7(2), Ltd., F-2, 40 Feet Road, New Delhi Ganga Vihar, Gokulpur, New Delhi – 110 094 Pan No. Aabcd 9373 R (Appellant) (Respondent) Assessee By Shri K. M. Gupta, Adv. & Shri Rishabh Malhotra, A.R. Revenue By Shri T. James Singson, Cit-D.R. Date Of Hearing: 06.02.2023 Date Of Pronouncement: 10.02.2023 Order Per Anil Chaturvedi, Am : This Appeal Filed By The Revenue Is Directed Against The Order Dated 19.09.2019 Of The Commissioner Of Income Tax (Appeals)-3, New Delhi Relating To Assessment Year 2016-17. 2. Brief Facts Of The Case As Culled Out From The Material On Record Are As Under :-

Section 143(3)Section 37(1)Section 56(2)(viib)

premium Rs.1070.41 per share (Rs.1241.29 - Rs.169.88) ACIT vs. M/s. Drishti Soft Solutions Pvt. Ltd. 4 multiplied by the number of shares issued as income from other sources taxable u/s 56(2)(viib) of the Act and thus made the addition of Rs.21,57,85,188/-. 7. Aggrieved by the order ... fair market value of the shares, shall be deemed to be the income of the concerned company chargeable to tax under the head “income from other sources” for the relevant financial year. We further find that proviso of Section 56(2)(viib) of the Act provides that the provision

Subhash Chand Dhingra, Gurgaon vs. ACIT Central Circle-3(1), Gurgaon

The appeals are dismissed

ITA 1063/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

selected for scrutiny assessment u/s 143 for following enquiry / clarification:- a. Reduction of income in revised return and claim of refund b. Income from other sources 4. The Ld. Revisional Authority was of the view that during the scrutiny the Ld. AO had issued standard questionnaire ... applicable to business firm/ association rather than an individual who is filing the return of income showing income from salary, house property and income from other sources. It observed that the ld AO does not know that deduction u/s 57 pertains to interest on enhanced compensation

Ashok Kumar Dhingra, Gurgaon vs. ACIT Circle-1(1), Gurgaon

The appeals are dismissed

ITA 1061/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

selected for scrutiny assessment u/s 143 for following enquiry / clarification:- a. Reduction of income in revised return and claim of refund b. Income from other sources 4. The Ld. Revisional Authority was of the view that during the scrutiny the Ld. AO had issued standard questionnaire ... applicable to business firm/ association rather than an individual who is filing the return of income showing income from salary, house property and income from other sources. It observed that the ld AO does not know that deduction u/s 57 pertains to interest on enhanced compensation

Satish Kumar Dhingra, Haryana vs. ACIT Circle-4(1), Gurgaon

The appeals are dismissed

ITA 1060/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

selected for scrutiny assessment u/s 143 for following enquiry / clarification:- a. Reduction of income in revised return and claim of refund b. Income from other sources 4. The Ld. Revisional Authority was of the view that during the scrutiny the Ld. AO had issued standard questionnaire ... applicable to business firm/ association rather than an individual who is filing the return of income showing income from salary, house property and income from other sources. It observed that the ld AO does not know that deduction u/s 57 pertains to interest on enhanced compensation

M/S Sachin Udyog Nagar Sahkari Mandli Ltd., Surat vs. Assistant Commissioner of Income Tax, Circle - 1(2), Surat

In the result, the appeal of the Revenue is dismissed

ITA 439/SRT/2022[2018-19]Status: DisposedITAT Surat07 Feb 2023AY 2018-19

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.438 & 439/Srt/2022 Assessment Years: (2017-18 & 2018-19) (Virtual Court Hearing) Sachin Udyog Nagar Sahkari Mandli Vs. The Acit, Circle -1(2), Ltd., Surat. 2Nd Floor, Vivekanand Chambers, Beside Rajehree Hall, Sangrampura, Surat – 395006. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacts7414C (Appellant) (Respondent) Assessee By Shri Kamlesh Bhatt, Ar Respondent By Shri Ashok B. Koli, Cit(Dr) & Vinod Kumar, Sr. Dr 07/02/2023 Date Of Hearing Date Of Pronouncement 07/02/2023 आदेश / O R D E R Per Dr. A. L. Saini, Am: Captioned Two Appeals Filed By The Assessee, Pertaining To The Assessment Years (Ays) 2017-18 & 2018-19, Are Directed Against The Separate Orders Passed By The Learned Commissioner Of Income Tax (Appeals), Surat [In Short “The Ld. Cit(A)”], Which In Turn Arise Out Of Separate Assessment Orders Passed By The Assessing Officer Under Section 143(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As “The Act”).

Section 143(3)Section 80Section 80P(2)(a)Section 80P(2)(d)

Deduction u/s 80(P)(2)(a) is available only in respect of income which is assessable as business income and not as income from other sources. whereas in distinction to this, the provisions of Section 80(P)(2)(d) of the Act provides for deduction in respect of income