Section 10(33) of the Income Tax Act
Income-tax Act, 2025: s.11
Section 10(33) falls under section 10 of the Income-tax Act, 1961, which corresponds to section 11 (Incomes not included in total income) of the Income-tax Act, 2025.
Read section 11 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 10(33) is CIT v. DLF Commercial Developers Ltd. (35 Taxmann.com 280), cited in 51 of the 101 judgments on BharatTax that turn on this section.
Leading authorities on Section 10(33)
Loss incurred by certain types of companies in trading derivatives is considered speculative loss under the Explanation to Section 73, as the value of stock derivatives depends on shares. Such speculative losses are ineligible for set-off or carry forward against business income.
This case is authority for the principle that deductions under section 36(1)(viii) of the Income-tax Act may be granted in respect of certain categories of receipts. The court's decision in this case is relied upon when interpreting the scope of business activities for tax purposes.
Bonus shares are akin to splitting existing shares, not a receipt of new property. Therefore, there is no accretion of wealth or gift involved in their issuance.
