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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

JCIT (OSD)-8(1)(1), Mumbai vs. M/S Royal Western India Turf Club Ltd., Mumbai

In the result, all the captioned appeals of the revenue stands dismissed

ITA 3744/MUM/2019[2015-16]Status: DisposedITAT Mumbai02 Sept 2022AY 2015-16

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.3742/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2013-14) & आयकर अपील सं/ I.T.A. No.3743/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) & आयकर अपील सं/ I.T.A. No.3744/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) Jcit (Osd)-8(1)(1) बिधम/ M/S. Royal Western India Room No. 625, 6Th Floor, Turf Club Ltd. Vs. Aayakar Bhawan, Maharshi Mahalaxmi Race Course, Karve Marg, Mumbai- Mahalaxmi, Mumbai- 400020. 400034. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcr8519H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Sumit Lalchandani Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 27/07/2022 घोषणा की तारीख /Date Of Pronouncement: 02/09/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Revenue Appeals Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-14, Mumbai Dated 27.02.2019 For Assessment Year 2013-14, Ay 2014-15 & Ay 2015-16 Respectively. 2. At The Outset, The Ld. Ar Of The Assessee Submits That The Grounds Of Appeal Preferred By The Revenue Are Similar Especially Ground No. 1 & 2 For All The Years (Ay. 2013-14 To Ay. 2015-16) & The Additional Ground Is Only For Appeals Pertaining To Ay 2014-15 & Ay 2015-16 Which Is Related To Disallowance Made U/S 14A Of The

For Appellant: Shri Sumit LalchandaniFor Respondent: Smt. Mahita Nair (Sr. AR)
Section 143(3)Section 14A

classified under the following heads of income viz ―Salaries, Income from house property, Profit and gains of business or profession‖, Capital gain and Income from other sources. Provisions of the Act provides for what can be considered as income under the various heads of income. Thus income of an assessee ... relation to any capital asset, the same can also not be considered as capital gain for the assessee. With respect to income from other source, that income of every kind which is not chargeable to tax under any head of income are subjected to tax under the residuary head

JCIT (OSD)-8(1)(1), Mumbai vs. M/S Royal Western India Turf Club Ltd., Mumbai

In the result, all the captioned appeals of the revenue stands dismissed

ITA 3743/MUM/2019[2014-15]Status: DisposedITAT Mumbai02 Sept 2022AY 2014-15

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.3742/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2013-14) & आयकर अपील सं/ I.T.A. No.3743/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) & आयकर अपील सं/ I.T.A. No.3744/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) Jcit (Osd)-8(1)(1) बिधम/ M/S. Royal Western India Room No. 625, 6Th Floor, Turf Club Ltd. Vs. Aayakar Bhawan, Maharshi Mahalaxmi Race Course, Karve Marg, Mumbai- Mahalaxmi, Mumbai- 400020. 400034. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcr8519H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Sumit Lalchandani Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 27/07/2022 घोषणा की तारीख /Date Of Pronouncement: 02/09/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Revenue Appeals Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-14, Mumbai Dated 27.02.2019 For Assessment Year 2013-14, Ay 2014-15 & Ay 2015-16 Respectively. 2. At The Outset, The Ld. Ar Of The Assessee Submits That The Grounds Of Appeal Preferred By The Revenue Are Similar Especially Ground No. 1 & 2 For All The Years (Ay. 2013-14 To Ay. 2015-16) & The Additional Ground Is Only For Appeals Pertaining To Ay 2014-15 & Ay 2015-16 Which Is Related To Disallowance Made U/S 14A Of The

For Appellant: Shri Sumit LalchandaniFor Respondent: Smt. Mahita Nair (Sr. AR)
Section 143(3)Section 14A

classified under the following heads of income viz ―Salaries, Income from house property, Profit and gains of business or profession‖, Capital gain and Income from other sources. Provisions of the Act provides for what can be considered as income under the various heads of income. Thus income of an assessee ... relation to any capital asset, the same can also not be considered as capital gain for the assessee. With respect to income from other source, that income of every kind which is not chargeable to tax under any head of income are subjected to tax under the residuary head

JCIT (OSD)-8(1)(1), Mumbai vs. M/S Royal Western India Turf Club Ltd., Mumbai

In the result, all the captioned appeals of the revenue stands dismissed

ITA 3742/MUM/2019[2013-14]Status: DisposedITAT Mumbai02 Sept 2022AY 2013-14

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.3742/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2013-14) & आयकर अपील सं/ I.T.A. No.3743/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2014-15) & आयकर अपील सं/ I.T.A. No.3744/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) Jcit (Osd)-8(1)(1) बिधम/ M/S. Royal Western India Room No. 625, 6Th Floor, Turf Club Ltd. Vs. Aayakar Bhawan, Maharshi Mahalaxmi Race Course, Karve Marg, Mumbai- Mahalaxmi, Mumbai- 400020. 400034. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aabcr8519H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Sumit Lalchandani Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 27/07/2022 घोषणा की तारीख /Date Of Pronouncement: 02/09/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Revenue Appeals Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-14, Mumbai Dated 27.02.2019 For Assessment Year 2013-14, Ay 2014-15 & Ay 2015-16 Respectively. 2. At The Outset, The Ld. Ar Of The Assessee Submits That The Grounds Of Appeal Preferred By The Revenue Are Similar Especially Ground No. 1 & 2 For All The Years (Ay. 2013-14 To Ay. 2015-16) & The Additional Ground Is Only For Appeals Pertaining To Ay 2014-15 & Ay 2015-16 Which Is Related To Disallowance Made U/S 14A Of The

For Appellant: Shri Sumit LalchandaniFor Respondent: Smt. Mahita Nair (Sr. AR)
Section 143(3)Section 14A

classified under the following heads of income viz ―Salaries, Income from house property, Profit and gains of business or profession‖, Capital gain and Income from other sources. Provisions of the Act provides for what can be considered as income under the various heads of income. Thus income of an assessee ... relation to any capital asset, the same can also not be considered as capital gain for the assessee. With respect to income from other source, that income of every kind which is not chargeable to tax under any head of income are subjected to tax under the residuary head