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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

Kyra Investments, Mumbai vs. Asstt. CIT, Circle-17(2), Mumbai

In the result, appeal by the assessee is partly allowed

ITA 1262/MUM/2021[2016-17]Status: DisposedITAT Mumbai02 May 2022AY 2016-17

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.1262/मुं/2021 ("न.व. 2016-17) Kyra Investments, 8/36, Grants Building, Arthur Bunder Road, Colaba, Mumbai – 400 005 Pan: Aagfk-3932-P ...... अपीलाथ" /Appellant बनाम Vs. Assistant Commissioner Of Income Tax Circle -17(2), Aaykar Bhavan, M.K.Road, ..... ""तवाद"/Respondent Mumbai 400 020. अपीलाथ" "वारा/ Appellant By : Ms. Swati Banwat ""तवाद" "वारा/Respondent By : Shri Azhar Zain सुनवाई क" "त"थ/ Date Of Hearing : 02/02/2022 घोषणा क" "त"थ/ Date Of Pronouncement : 02/05/2022 आदेश/ Order

For Appellant: Ms. Swati BanwatFor Respondent: Shri Azhar Zain

three grounds: 2 (i) Disallowance of Administrative Expenses - Rs.11,02,686/- (ii)Refund of Sewage Tax Rs.3,74,588/- considered as Income from Other Sources as against Business Income claimed by the assessee. (iii)Dividend income of Rs.15,000/- received from Zoroastrian Co-Op Bank offered to tax as ‘Business ... Income’ by the assessee considered As Income from Other Sources by the assessee. 3. Ms. Swati Banwat appearing on behalf of the assessee submitted that, the assessee had claimed Administrative Expenses aggregating to Rs.11,02,886/- in respect of its business. The ld.Authorized Representative of the assessee fairly admitted that

Income Tax Officer 8(3)(3), Mumbai vs. M/S.Vibgyor Texotech Private Limited, Mumbai

In the result, the appeal of the assessee is partly allowed, whereas appeal of the Revenue is allowed

ITA 1484/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Apr 2022AY 2009-10

Bench: Shri Amarjit Singh () & Shri Om Prakash Kant () Assessment Year: 2009-10 Income Tax Officer-8(3)(3), M/S Vibgyor Texotech Pvt. Ltd., Room No. 616, 6Th Floor, Aayakar 309, Navyug, T.J. Road, Sewree, Bhavan, M.K. Road, Vs. Mumbai-400015. Mumbai-400020. Pan No. Aaccv 0752 D Appellant Respondent Assessment Year: 2009-10 M/S Vibgyor Texotech Pvt. Ltd., The Asst. Commissioner Of 309, Navyug, T.J. Road, Sewree, Income Tax-8(3)(2), Mumbai-400015. Vs. Mumbai. Pan No. Aaccv 0752 D Appellant Respondent

For Appellant: Mr. Pavan Ved, ARFor Respondent: Mr. Achal Sharma, CIT-DR/
Section 10ASection 143(2)Section 143(3)Section 144Section 148Section 264ASection 40

Vibgyor Texotech Pvt. Ltd. assessee, that does not prevent the ITO from treating, but entitles him to treat, the unexplained cash credit as income from undisclosed sources which falls under the head of income "income from other sources". Unless the assessee, by independent and satisfactory evidence, establishes that those amounts ... that the cash credits are genuine. The assessee never took specific stand that these unexplained cash credits are referable to the income from disclosed sources viz., business, whose income has been estimated by the Revenue authorities. In order to delete this addition, the assessee is bound to explain the source

Alcon Laboratories India Pvt Ltd, Bangalore vs. Income Tax Officer Ward-1(1)(4), Bangalore

In the result the appeal filed by the assessee stands allowed as indicated herein above

ITA 726/BANG/2017[2012-13]Status: DisposedITAT Bangalore29 Apr 2022AY 2012-13

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(Tp)A No. 726/Bang/2017 Assessment Year : 2012-13 M/S. Alcon Laboratories (India) The Deputy Pvt. Ltd., Commissioner Of 11Th Floor, Rmz Azure, Income Tax, Bellary Road, Hebbal, Circle – 1(1)(1), Bangalore – 560 092. Vs. Bangalore. Pan: Aacca3430F Appellant Respondent : Shri Percy Pardiwala, Sr. Assessee By Advocate : Dr. Manjunath Karkihalli, Cit Revenue By (Dr) Date Of Hearing : 12-04-2022 Date Of Pronouncement : 29-04-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 23/01/2017 Passed By The Ld.Ito, Ward-1(1)(4), Bangalore For Assessment Year 2012-13 On Following Revised Grounds Of Appeal: “Based On The Facts & Circumstances Of The Case & In Law, Alcon Laboratories (India) Private Limited (Hereinafter Referred To As "Appellant”), Respectfully Craves Leave To Prefer An Appeal Against The Order Passed By The Learned Assessing Officer [Hereinafter Referred To As The "Learned Ao”] In Pursuance To The Directions Issued By Hon'Ble

For Respondent: Shri Percy Pardiwala, Sr
Section 143(3)Section 144C

releases of the product." 6.2 Persystent Systems Limited having revenue of 8103.64 Million from software services and other income of 323.76 million from income from other sources. Assessment year 2012-2013 is an abnormal year of operation to Persystent Systems Limited, which is evident from the annual report placed

Sandeep P. Parikh, Mumbai vs. Pr. CIT -16, Mumbai

In the result, assessee’s appeal stands allowed

ITA 678/MUM/2021[2015-16]Status: DisposedITAT Mumbai28 Apr 2022AY 2015-16

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadalesandeep P. Parikh Vs. Pr. Cit- 16 B-6, Anand Bhavan, Room No. 437, 4Th Bajaj Road, Vile Parle Floor, Aayakar Bhavan, (W), Mumbai – 400056 Mk Road, Mumbai – 400020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aajpp8447R Appellant .. Respondent Appellant By : Shri. Pankaj Toprani.Ar Respondent By : Shri Ajay. K. Srivastava.Dr Date Of Hearing 24.03.2022 Date Of Pronouncement 20.04.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Assessee Has Filed The Appeal Against The Order Of The Principle Commissioner Of Income Tax (Pr.Cit)-16, Mumbai Passed U/Sec 263 Of The Act, 1961. At The Time Of Hearing, The Ld.Ar Of The Assessee Submitted That There Is A Delay In Filing The Appeal Before The Hon’Ble Tribunal Due To Covid-19 Pandemic. The Assessee Has Filed An Affidavit For Condonation Of Sandeep P. Parikh, Mumbai. Delay & We Find The Facts Mentioned In The Affidavit Are Reasonable & Acceptable. The Ld.Dr Has No Specific Objections. Accordingly, We Condone The Delay & Admit The Appeal.The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Shri. Pankaj Toprani.ARFor Respondent: Shri Ajay. K. Srivastava.DR
Section 143(1)Section 143(2)Section 143(3)Section 263Section 28

case was discussed. The assessee has filed the return of income disclosing the income from house property and income from business/profession and income from other sources. The assessing officer(A.O) has accepted the returned income and passed the order u/s 143(3) of the Act dated 28.11.2017 with assessed income

M/S.Vibgyor Texotech Private Limited, Mumbai vs. ACIT-8(3)(2), Mumbai

In the result, the appeal of the assessee is partly allowed, whereas appeal of the Revenue is allowed

ITA 487/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Apr 2022AY 2009-10

Bench: Shri Amarjit Singh () & Shri Om Prakash Kant () Assessment Year: 2009-10 Income Tax Officer-8(3)(3), M/S Vibgyor Texotech Pvt. Ltd., Room No. 616, 6Th Floor, Aayakar 309, Navyug, T.J. Road, Sewree, Bhavan, M.K. Road, Vs. Mumbai-400015. Mumbai-400020. Pan No. Aaccv 0752 D Appellant Respondent Assessment Year: 2009-10 M/S Vibgyor Texotech Pvt. Ltd., The Asst. Commissioner Of 309, Navyug, T.J. Road, Sewree, Income Tax-8(3)(2), Mumbai-400015. Vs. Mumbai. Pan No. Aaccv 0752 D Appellant Respondent

For Appellant: Mr. Pavan Ved, ARFor Respondent: Mr. Achal Sharma, CIT-DR/
Section 10ASection 143(2)Section 143(3)Section 144Section 148Section 264ASection 40

Vibgyor Texotech Pvt. Ltd. assessee, that does not prevent the ITO from treating, but entitles him to treat, the unexplained cash credit as income from undisclosed sources which falls under the head of income "income from other sources". Unless the assessee, by independent and satisfactory evidence, establishes that those amounts ... that the cash credits are genuine. The assessee never took specific stand that these unexplained cash credits are referable to the income from disclosed sources viz., business, whose income has been estimated by the Revenue authorities. In order to delete this addition, the assessee is bound to explain the source

DCIT CC 4(2), Mumbai vs. Rockfort Estate Developers Pvt Ltd, Mumbai

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

ITA 4091/MUM/2019[2014-15]Status: DisposedITAT Mumbai28 Apr 2022AY 2014-15

Bench: Shri S Rifaur Rahman & Shri Pavan Kumar Gadaledcit, Cc-4(2) Vs M/S Rockfort Estate Room No. 1918, 19Th Developers Pvt Ltd Floor, Air India Bldg, 1,Leela Baug, Andheri – Nariman Point, Kurla, Mumbai – 400021. Mumbai – 400051. Pan/Gir No. : Aabcr7896K Appellant .. Respondent Co No. 72/Mum/2021 (Arising Out Of Ita No. 4091/Mum/2019 A.Y 2014-15) M/S Rockfort Estate Vs Dcit, Cc-4(2) Developers Pvt Ltd Room No. 1918, 19Th 1, Leela Baug,Andheri Floor, Air India Bldg, – Kurla, Nariman Point, Mumbai – 400051. Mumbai – 400021. Pan/Gir No. : Aabcr7896K Appellant .. Respondent Assessee By : Mr.Rahul Hakani.Ar Revenue By : Mr.S.N. Kabra.Dr Date Of Hearing 28.01.2022 Date Of Pronouncement 25.04.2022 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: The Revenue Has Filed The Appeal Against The Order Of The Commissioner Of Income Tax (Appeals)-52

For Appellant: Mr.Rahul Hakani.ARFor Respondent: Mr.S.N. Kabra.DR
Section 14Section 143(2)Section 143(3)Section 14ASection 22Section 23Section 36(1)(iii)Section 37(1)

assessee appeared from time to time and submitted the details and the case was discussed. The assessee derives the rental income from property, income from other sources and discloses in the computation of income unabsorbed loss from business and unabsorbed loss from house property. The assessee has under taken ... business activities prior to A.Y. 2003-04 to till date, however, it has shown income under the heads, 'Income from House Property' and 'Income from Other Sources' only. The AO further observed that the rental income received by the assessee on letting its commercial premises, teela Business Park' has been

DCIT 29(2), Mumbai vs. Shri Kirti Ramji Kothari, Mumbai

In the result, the appeal filed by the revenue is hereby dismissed

ITA 3341/MUM/2019[2015-16]Status: DisposedITAT Mumbai28 Apr 2022AY 2015-16

Bench: Shri Amarjit Singh, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.3341/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) Dcit-29(2) बिधम/ Kirti Ramji Kothari Room No.422, 4Th Floor, A/7, Maheh Krupa Devi Vs. Kautilya Bhavan, B.K.C. Dayal Cross Road, Mulund Bandra (E), Mumbai- (W), Mumbai-400080. 400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaepk3216C (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Bharti Singh (Sr. Ar) Assessee By: Shri Mandar Vaidya सुनवाई की तारीख / Date Of Hearing: 05/04/2022 घोषणा की तारीख /Date Of Pronouncement: 28/04/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue Has Filed The Present Appeal Against The Order Dated 14.02.2019 Passed By The Commissioner Of Income Tax (Appeals) -40 Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The A.Y.2015- 16. 2. The Revenue Has Raised The Following Grounds: - "1. On The Facts & Circumstances Of The Case, The Id. Cit(A) Erred In Allowing The Assessee’S Claim That The Profit Of Rs. 5,75,40,478/- From F & O Trading Was To Be Assessed Either As Business Income Or Under Either Of The Heads Of Income A To F Of Section 14 Of The Lt. Act Without Appreciating The Fact That The Investigation & Analysis Of The A.Y.2015-16 Facts As Borne Out By The A.O. In The Assessment Order Clearly Establish That The Profit Was Bogus & Sham Earned Through Synchronized Trading In Illiquid Stock Option & Accordingly The Same Was Correctly Assessed U/S 68 Of The It Act.

For Appellant: Shri Mandar VaidyaFor Respondent: Shri Bharti Singh (Sr. AR)
Section 14Section 143(2)Section 68Section 69C

satisfaction of the AO and by applying the provision of Sec. 68 the AO added the said sum under Income from undisclosed sources. The issue arises here when the Assessee himself has declared the same to be his Income from Business & offered for Taxation in Return of Income as such ... then whether the same can be treated as income from undisclosed sources. The AR of the Appellant referred to the various Citations. However, I have considered only two of them which are close to the present issue. The First one being the citation in the case of Margaret’s Hope