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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

Shreerang Prakash Chikhalikar, Mumbai vs. ITO-1(3)(2), Mumbai

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

ITA 1359/MUM/2021[2015-16]Status: DisposedITAT Mumbai05 Jul 2022AY 2015-16

Bench: Shri Pavan Kumar Gadale & Shri Amarjit Singhshreerang Prakash Vs. Ito – 1(3)(2) Chikhalikar,501, 5Th Floor, Aayakar Sugan, Cumballa Hill Bhavan, M.K.Road, Road, Grant Road, Mumbai – 400020. Mumbai – 400036. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Acdpc3706G Appellant .. Respondent Appellant By : Shri.Dm Shah.Ar Respondent By : Shri.Anoop Hiwase.Dr Date Of Hearing 29.06.2022 Date Of Pronouncement 05.07.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Of The Cit(A)- National Faceless Appeal Centre (Nfac), Delhi Passed U/S 143(3) & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Shri.DM Shah.ARFor Respondent: Shri.Anoop Hiwase.DR
Section 143(1)Section 143(2)Section 143(3)Section 2(22)(e)Section 22Section 57

brief facts of the case are that the assessee is an individual and derives income from salary, income from house property & income from other sources. The assessee has filed the return of income for the A.Y 2015-16 on 27.08.2015 disclosing a total loss ... Subsequently the Shreerang Prakash Chikhalikar, Mumbai case was selected for limited scrutiny under the CASS to examine the issues (i) Deductions from income from other sources /large deduction claimed u/s 57(ii) interest income mismatch / gross interest shown in schedule OS of ITR is less than the interest reported

M/S. Khoday India Limited, Bangalore vs. Income Tax Officer, Ward- 4(1)(2), Bangalore

In the result appeal filed by assessee stands allowed

ITA 97/BANG/2022[2015-16]Status: DisposedITAT Bangalore30 Jun 2022AY 2015-16

Bench: Smt. Beena Pillai & Shri. Laxmi Prasad Sahuassessment Year : 2015-16 M/S. Khoday India Ltd., The Income-Tax 7Th Mile, Brewery House, Officer, Kanakapura Road, Ward 4 (1)(2), Bangalore – 560 062. Bangalore. Pan: Aaack6734C Vs. Appellant Respondent Assessee By : Shri V. Sridhar, Ca : Shri Ramesh B.R., Addl. Cit Revenue By (Dr) Date Of Hearing : 09-06-2022 Date Of Pronouncement : 30-06-2022 Order Per Beena Pillaipresent Appeal Is Filed By The Assessee Against Order Dated 09/12/2021 Passed By The Ld.Cit(A)-11, Bangalore For Assessment Year 2015-16 On Following Grounds Of Appeal: “1. The Order Of The Learned Commissioner Of Income-Tax (Appeals), Bengaluru-11, Bengaluru In Ita No.Cit(A)- 11/Bng/Tr.10036/2018-19 (Din: Itba /Apl /M/ 250 /2021-22/ 1037634908(1) Dated:09.12.2021 Is Opposed To Law, Weight Of Evidence, Probabilities & Facts & Circumstances Of The Case. 2. The Learned Commissioner Of Income-Tax (Appeals) Erred In Confirming The Order Of The Assessing Officer Passed U/S.154 Of The Income Tax Act, 1961 Dated:14.02.2018. 3. The Learned Commissioner Of Income-Tax (Appeals) Erred In Not Directing The Assessing Officer To Set Off The Entire

For Appellant: Shri V. Sridhar, CA
Section 115BSection 154Section 68Section 71

that she has arrived at the business loss under the head ''profits and gains of business/profession" and ascertained the income under the head "Income from other sources". When both the incomes have been determined under two heads, it is incumbent upon her to set off the business loss under ... aside the order of the Commissioner of Income-tax (Appeals), and direct the AO to set off business loss, including unabsorbed depreciation, against income from other sources taxed u/s.68 and grant consequential relief and such other relief as the Hon'ble Income Tax Appellate Tribunal deems fit in the interests

M/S. Nicholas Piramal India Ltd, Mumbai vs. The ACIT Cur 7(1)

In the result, the appeal filed by the revenue is dismissed and the appeal filed by the assessee is partly allowed for statistical purposes

ITA 769/MUM/2008[2004-2005]Status: DisposedITAT Mumbai28 Jun 2022AY 2004-2005

Bench: Shri Pavan Kumar Gadale & Shri S Rifaur Rahmanpiramal Enterprises Ltd Vs. Acit, Circle – 7(1) (Formerly Known As Aayakar Bhavan Piramal Healthcare Ltd) Mumbai – 400020. (Before Known As Nicholas Piramal Ind) Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013. Pan/Gir No. : Aaacn4538P Appellant .. Respondent Dcit, Circle – 7(1) Vs. Piramal Enterprises Ltd Aayakar Bhyavan (Formerly Known As Mumbai – 400 020. Piramal Healthcare Ltd) (Before Known As Nicholas Piramal Ind) Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013. Pan/Gir No. : Aaacn4538P Assessee By : Mr.Ronak Doshi & Ms.Manshi Padhiyar.Ar Revenue By : Mr.S.N.Kabra.Dr

For Appellant: Mr.Ronak Doshi &For Respondent: Mr.S.N.Kabra.DR
Section 143(3)Section 145Section 32Section 35Section 80

Nicholas Piramal India Ltd, Mumbai. income from RP house property and Centre point as income from 'house property' as against assessed as income from 'other sources' ignoring the fact that the assessee was not the legal owner of the property in the relevant assessment year. 7. On the facts ... rental receipts can also not be taxed under the head Business Income. Such rental receipts can only be taxed under the head "Income from other sources". The deduction available to the assessee company would be only those which qualify u/s 57(iii) of the I T Act. The rental income

Morgan Stanley Advantage Services P Ltd., Mumbai vs. CIT (Apeals), Nationa Faceless Appeal Centre, Delhi, Mumbai

In the result, appeal of the assessee is allowed

ITA 1083/MUM/2021[2016-17]Status: DisposedITAT Mumbai27 Jun 2022AY 2016-17

Bench: Shri Kuldip Singh & Shri Gagan Goyalmorgan Stanley Advantage Services Pvt. Ltd. Athena Building No.5, Sector-30, Mindspace, Goregaon (West), Mumbai-400090 Pan: Aaeca3400B ...... Appellant Vs. Commissioner Of Income Tax (Appeals), National Faceless Appeals Centre, Delhi. ..... Respondent Appellant By : Sh. Sunil M. Lala Respondent By : Sh. Amol B. Kirtane Date Of Hearing : 20/06/2022 Date Of Pronouncement : 27/06/2022 Order Per Gagan Goyal, A.M: This Appeal By The Assessee Is Directed Against The Order Of Commissioner Of Income Tax (Appeals), National Faceless Appeals Centre (Nfac), Delhi. [Hereinafter Referred To As ‘The Cit(A)’] Vide Order Dated 11.12.2018 For The Assessment Year (Ay) 2016-17. The Assessee Has Raised The Following Grounds Of Appeal: “Ground 1: Disallowance Of Expenditure Claimed Towards Employee Stock Option Scheme (Esop) Under Section 37(1) Of The Income-Tax Act, 1961 (Act) Amounting To Rs 1,84,75,816. In This Regard, The Learned Cit(A)/ Learned Assessing Officer Has, On The Facts & Circumstances Of The Case & In Law, Erred On The Following Grounds:

For Appellant: Sh. Sunil M. LalaFor Respondent: Sh. Amol B. Kirtane
Section 143(2)Section 271Section 271(1)(c)Section 30Section 37(1)

support to the Morgan Stanley group of companies globally. The assessee-company has shown income under the heads “Business & Profession”, “Capital Gains” and “Income from Other Sources”. 4. During the course of assessment proceedings, the assessee was given a show-cause notice regarding allowability of claim towards the cost

DCIT 4(1)(2), Mumbai vs. Mayank Jashwantlal Shah, Mumbai

In the result, the appeal filed by the revenue and CO filed by the assessee are allowed for statistical purposes

ITA 6364/MUM/2018[2013-14]Status: DisposedITAT Mumbai27 Jun 2022AY 2013-14

Bench: Shri Pramod Kumar, Vp & Shri Amit Shukla, Jm आयकरअपीलसं./ I.T.A. No. 6364/Mum/2018 (ननधधारणवर्ा / Assessment Year: 2013-14) Dcit, Circle-4(1)(2), Mayank Jashwantlal Shah, R. No. 642, 6Th Floor, ‘A’ Aidun Building, बनाम/ Aayakar Bhavan, M. K. 1St Dhobhi Talao, John Crasto Vs. Road, Mumbai-400 020 Lane, Mumbai-400 002 स्थधयीलेखधसं./जीआइआरसं./ Pan No. Aahps3906Q (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : & Cross Objection No. 247/Mum/2019 (ननधधारणवर्ा / Assessment Year: 2013-14) Mayank Jashwantlal Shah, बनाम/ Dcit, Circle-4(1)(2), Vs. (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : अपीलधथीकीओरसे/ Appellant By : Shri R. P. Rastogi, Ld. Dr प्रत्यथीकीओरसे/Respondent By : Shri Hiro Rai, Ld. Ar सुनवधईकीतधरीख/ : 14.06.2022 Date Of Hearing घोर्णधकीतधरीख / : 27.06.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeal Filed By The Revenue & Cross Objection Filed By The Assessee Against The Order Dated 28.08.2018 Passed By Ld. Cit(A)-9, Mumbai For The Quantum Of Assessment Passed U/S 2

For Appellant: Shri R. P. Rastogi, Ld. DRFor Respondent: Shri Hiro Rai, Ld. AR
Section 2Section 22Section 23(2)

247/Mum/2019 Mayank Jashwantlal Shah 3. The brief facts of the case are that, assessee is an individual declared income from house property and income from other sources. Ld. AO noted that during the assessment year, a new building was registered in the name of assessee and other family members which