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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

Vaibhavnagar Co-Op Credit Soc Limited, Mumbai vs. Income Tax Officer, 27(3)(5), Mumbai

In the result, the three appeals filed by the assessee are allowed

ITA 2694/MUM/2022[2014-2015]Status: DisposedITAT Mumbai29 Dec 2022AY 2014-2015

Bench: Shri Pavan Kumar Gadaleita Nos. 2694, 2696 & 2697/Mum/2022 (A.Ys: 2014-15, 2016-17 & 2017-18) Vaibhavnagar Co Op Vs. Ito – 27(3)(5) Credit Soc Ltd., Room No. 428, 4Th Ground Floor, Vaibhav Floor, 6Th Tower, Vashi Nagar Vaman Tukaram Rly Station Complex, Patil Marg, Gowandi Navi Mumbai – 400703 Mumbai – 400088 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaav5519Q Appellant .. Respondent Assessee By : Mr.Ramesh S Iyer.Ar Revenue By : Ms.Richa Gulati.Dr Date Of Hearing 21.12.2022 Date Of Pronouncement 22.12.2022 आदेश / O R D E R

For Appellant: Mr.Ramesh S Iyer.ARFor Respondent: Ms.Richa Gulati.DR
Section 143(1)Section 143(2)Section 143(3)Section 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(c)Section 80P(2)(d)

Appeals) has erred in considering interest earned by the society from other co-operative societies earned in due course of business as income from other sources and denying deduction u/s 80P(2)(a)(i) against the same. 2. Alternatively, the interest income earned from other co- operative societies/banks is eligible ... assessee is engaged in the business of banking and the interest earned from cooperative banks are to be taxed under income from other sources and assessed the total income of Rs.35,13,480/- and passed the order u/s 143(3) of the Act dated 14.11.2016. 3. Aggrieved by the order

Kathiravan Srinivasan, Perambalur vs. DCIT, Circle -1, Tiruchirapalli

In the result, the appeal filed by the assessee in ITA No

ITA 172/CHNY/2022[2011-2012]Status: DisposedITAT Chennai23 Dec 2022AY 2011-2012

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकरअपील सं./Ita Nos.: 170 & 171/Chny/2022 िनधा"रण वष" / Assessment Year: 2010-11 & आयकरअपील सं./Ita No.: 172/Chny/2022 िनधा"रण वष" / Assessment Year: 2011-12 Shri Kathiravan Srinivasan, Vs The Dcit, No.274C, Thuraiyur Road, Circle-1, 2Nd Perambalur – 621 212. Main Building, Floor, New No.44, Old No.4, Williams Road, Cantonment, Pan: Ajspk 6687Q Trichirapalli-620 001. (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri G. Baskar, Advocate ""यथ" क" ओर से/Respondent By : Shri Darzakhum Songate, Cit सुनवाई क" तार"ख/Date Of Hearing : 18.10.2022 घोषणा क" तार"ख/Date Of Pronouncement : 23.12.2022 आदेश /O R D E R Per Mahavir Singh, Vp: These Three Appeals By The Assessee Are Arising Out Of Two Different Orders Of The Commissioner Of Income Tax (Appeals)-19, Chennai In Ita Nos.581 & 582/Chny/19-20 Dated 03.03.2022. The Assessments In Ita Nos.170 & 172/Chny/2022 Were Framed By The Jcit, Range 1, Trichy For The Assessment Years 2010-11 & 2011-12 U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) Vide Orders Dated 31.03.2013 & 31.03.2014 Respectively. The Third Appeal In Ita No.171/Chny/2022 Is Against The Assessment Order Framed In Consequence To Revision Order Passed By Pcit U/S.263 Of The Act & Consequent Order Of The Ao For The Assessment Year 2010-11 U/S.143(3) R.W.S. 263 Of The Act Dated 12.03.2015 Passed By The Dcit, Circle-1, Trichy.

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri Darzakhum Songate, CIT
Section 143(3)Section 263Section 68

Perambalur vi. Deriving salary from Dhanalakshmi Chits (Pvt.) Ltd., vii. Deriving Rental Income from residential house at Trichy viii. Interest income and income from other sources (Brokerage / Commission) The AO noted the fact that the assessee has maintained detailed books of accounts for these lines of his business activities ... explanation is unconvincing then the same should deserve to be rejected and if the Department rejects it and draws inference that amount represents income either from sources already disclosed or from some undisclosed sources, that can be added only after stating the reason as to how explanation is unconvincing. Similarly

Kathiravan Srinivasan, Perambalur vs. DCIT, Circle-1, Tiruchirapalli

In the result, the appeal filed by the assessee in ITA No

ITA 171/CHNY/2022[2010-11]Status: DisposedITAT Chennai23 Dec 2022AY 2010-11

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकरअपील सं./Ita Nos.: 170 & 171/Chny/2022 िनधा"रण वष" / Assessment Year: 2010-11 & आयकरअपील सं./Ita No.: 172/Chny/2022 िनधा"रण वष" / Assessment Year: 2011-12 Shri Kathiravan Srinivasan, Vs The Dcit, No.274C, Thuraiyur Road, Circle-1, 2Nd Perambalur – 621 212. Main Building, Floor, New No.44, Old No.4, Williams Road, Cantonment, Pan: Ajspk 6687Q Trichirapalli-620 001. (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri G. Baskar, Advocate ""यथ" क" ओर से/Respondent By : Shri Darzakhum Songate, Cit सुनवाई क" तार"ख/Date Of Hearing : 18.10.2022 घोषणा क" तार"ख/Date Of Pronouncement : 23.12.2022 आदेश /O R D E R Per Mahavir Singh, Vp: These Three Appeals By The Assessee Are Arising Out Of Two Different Orders Of The Commissioner Of Income Tax (Appeals)-19, Chennai In Ita Nos.581 & 582/Chny/19-20 Dated 03.03.2022. The Assessments In Ita Nos.170 & 172/Chny/2022 Were Framed By The Jcit, Range 1, Trichy For The Assessment Years 2010-11 & 2011-12 U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) Vide Orders Dated 31.03.2013 & 31.03.2014 Respectively. The Third Appeal In Ita No.171/Chny/2022 Is Against The Assessment Order Framed In Consequence To Revision Order Passed By Pcit U/S.263 Of The Act & Consequent Order Of The Ao For The Assessment Year 2010-11 U/S.143(3) R.W.S. 263 Of The Act Dated 12.03.2015 Passed By The Dcit, Circle-1, Trichy.

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri Darzakhum Songate, CIT
Section 143(3)Section 263Section 68

Perambalur vi. Deriving salary from Dhanalakshmi Chits (Pvt.) Ltd., vii. Deriving Rental Income from residential house at Trichy viii. Interest income and income from other sources (Brokerage / Commission) The AO noted the fact that the assessee has maintained detailed books of accounts for these lines of his business activities ... explanation is unconvincing then the same should deserve to be rejected and if the Department rejects it and draws inference that amount represents income either from sources already disclosed or from some undisclosed sources, that can be added only after stating the reason as to how explanation is unconvincing. Similarly

Kathiravan Srinivasan, Perambalur vs. DCIT, Circle-1, Tiruchirapalli

In the result, the appeal filed by the assessee in ITA No

ITA 170/CHNY/2022[2010-11]Status: DisposedITAT Chennai23 Dec 2022AY 2010-11

Bench: Shri Mahavir Singhand Shri Manoj Kumar Aggarwalआयकरअपील सं./Ita Nos.: 170 & 171/Chny/2022 िनधा"रण वष" / Assessment Year: 2010-11 & आयकरअपील सं./Ita No.: 172/Chny/2022 िनधा"रण वष" / Assessment Year: 2011-12 Shri Kathiravan Srinivasan, Vs The Dcit, No.274C, Thuraiyur Road, Circle-1, 2Nd Perambalur – 621 212. Main Building, Floor, New No.44, Old No.4, Williams Road, Cantonment, Pan: Ajspk 6687Q Trichirapalli-620 001. (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri G. Baskar, Advocate ""यथ" क" ओर से/Respondent By : Shri Darzakhum Songate, Cit सुनवाई क" तार"ख/Date Of Hearing : 18.10.2022 घोषणा क" तार"ख/Date Of Pronouncement : 23.12.2022 आदेश /O R D E R Per Mahavir Singh, Vp: These Three Appeals By The Assessee Are Arising Out Of Two Different Orders Of The Commissioner Of Income Tax (Appeals)-19, Chennai In Ita Nos.581 & 582/Chny/19-20 Dated 03.03.2022. The Assessments In Ita Nos.170 & 172/Chny/2022 Were Framed By The Jcit, Range 1, Trichy For The Assessment Years 2010-11 & 2011-12 U/S.143(3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’) Vide Orders Dated 31.03.2013 & 31.03.2014 Respectively. The Third Appeal In Ita No.171/Chny/2022 Is Against The Assessment Order Framed In Consequence To Revision Order Passed By Pcit U/S.263 Of The Act & Consequent Order Of The Ao For The Assessment Year 2010-11 U/S.143(3) R.W.S. 263 Of The Act Dated 12.03.2015 Passed By The Dcit, Circle-1, Trichy.

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri Darzakhum Songate, CIT
Section 143(3)Section 263Section 68

Perambalur vi. Deriving salary from Dhanalakshmi Chits (Pvt.) Ltd., vii. Deriving Rental Income from residential house at Trichy viii. Interest income and income from other sources (Brokerage / Commission) The AO noted the fact that the assessee has maintained detailed books of accounts for these lines of his business activities ... explanation is unconvincing then the same should deserve to be rejected and if the Department rejects it and draws inference that amount represents income either from sources already disclosed or from some undisclosed sources, that can be added only after stating the reason as to how explanation is unconvincing. Similarly