Section 10(37) of the Income Tax Act

Income-tax Act, 2025: s.11

Section 10(37) 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(37) is CIT v. Sunbeam Auto Ltd. (332 ITR 167), cited in 897 of the 558 judgments on BharatTax that turn on this section.

Leading authorities on Section 10(37)

CIT v. Sunbeam Auto Ltd.
332 ITR 167 · 2011 · High Court
897
citing judgments

The Commissioner cannot revise an assessment under Section 263 merely because the assessment order does not explicitly reflect an inquiry, or because the Commissioner holds a different opinion. An inquiry, even if considered inadequate, or an assessment based on a plausible view by the Assessing Officer after due examination, does not automatically make the order erroneous or prejudicial to the interests of the revenue.

ITO v. D.G. Housing Projects Ltd.
343 ITR 329 · 2012 · High Court
438
citing judgments

For exercising revisional jurisdiction under Section 263, the Commissioner must first find that the Assessing Officer's order is erroneous and unsustainable in law, as this is a condition precedent. An order is not erroneous merely because two views are possible, or if the Commissioner disagrees with the Assessing Officer's permissible view, or to simply remit the matter for further enquiries.

CIT v. Ghanshyam (HUF)
315 ITR 1 · 2009 · Supreme Court
363
citing judgments

Interest received under Section 28 of the Land Acquisition Act, 1894, is considered part of the enhanced compensation on compulsory acquisition of land. It is taxable as 'capital gains' and not separately as 'interest income' under the head Income from Other Sources.

Shyam Sunder v. Ram Kumar
8 SCC 24 · 2001 · Supreme Court
263
citing judgments

A statutory explanation that is clarificatory in nature applies retrospectively from the date the main provision came into force. However, if an explanation changes the law, it is not presumed to be retrospective, even if phrases like 'it is declared' or 'for the removal of doubts' are used.

Shyam Sunder v. Ram Kumar, (2001) 8 SCC 24 (para 44); Brij Mohan Das Laxman Das v. CIT
5 SCC 482 · 1997 · Supreme Court
261
citing judgments

For income to be assessable under the head 'Income from House Property' as per Section 22 of the Income Tax Act, 1961, beneficial ownership or the right to enjoy the property is sufficient; legal ownership is not a mandatory prerequisite.

Rama Bai v. CIT
181 ITR 400 · 1990 · Supreme Court
258
citing judgments

Interest income is taxable on either an accrual or cash basis, determined by accounting principles. This method was applicable prior to legislative changes that simplified the taxation of interest income.

KOTAK MAHINDRA CO. LTD. AND ANOTHER. 367 50.(1987) 3 SCC 544: MADHAV AYAWADANRAO HOSKOT v. STATE OF MAHARASHTRA. 51
10 SCC 1 · 2014 · Supreme Court
250
citing judgments

The judgment in Kotak Mahindra Co. Ltd. does not appear to be directly cited for a specific income tax proposition in the provided passages. The passages merely list it as one of several cases cited in subsequent judgments, without detailing its specific contribution to the legal reasoning.

Narayan Tatu Rane v. ITO
70 Taxmann.com 227 · 2016 · ITAT
220
citing judgments

Before revising an assessment order under Section 263, the CIT/PCIT must conduct their own inquiries or verifications to establish that the Assessing Officer's order is erroneous and unsustainable in law, rather than merely directing further inquiry or pointing out the AO's lack of inquiry.

Reliance Jute and Industries Ltd. v. CIT
1 SCC 139 · 1980 · Supreme Court
214
citing judgments

The cardinal principle of tax law dictates that the law applicable to an assessment is the law in force for the relevant assessment year, unless the statute expressly or implicitly provides otherwise. A clarificatory statutory explanation must be read into the main provision from its inception.

CIT v. Govindbhai Mamaiya
91 Taxmann.com 20 · 2018 · Supreme Court
205
citing judgments

Interest on enhanced compensation received under Section 28 of the Land Acquisition Act, 1894, is considered part of the compensation, not merely interest income, and is exigible to tax on a receipt basis.

Judgments on Section 10(37)

Malini, Thirunindravur vs. ACIT, Ncc-22(1), Tambaram

In the result the appeal of the assessee is allowed

ITA 2362/CHNY/2024[2018-19]Status: DisposedITAT Chennai27 Mar 2025AY 2018-19

Bench: Shri Duvvuru Rl Reddyand Shri S.R. Raghunathaआयकरअपीलसं/.Ita No.:2362/Chny/2024 िनधा"रणवष"/Assessment Year:2018-19 Malini, The Assistant Commissioner Of 7, Ganapathy Puram, Near Vs. Income Tax, Ragvendra Nagar, Periyapalayam Non Corporate Circle 22(1), (Tbm), Road, Thiruninravur 602 024, Chennai. Tamil Nadu. [Pan: Ajspm-9167-B] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ"क"ओरसे/Appellant By : Shri D. Anand, Advocate ""यथ"क"ओरसे/Respondent By : Ms. Gauthami Manivasagam, Jcit सुनवाईक"तारीख/Date Of Hearing : 24.03.2025 घोषणाक"तारीख/Date Of Pronouncement : 27.03.2025 आदेश/ O R D E R Per Duvvuru Rl Reddy, Vice-: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi Dated 25.06.2024 Passed Under Section 250 Of The Income Tax Act, 1961 (Hereinafter Called ‘The Act’). The Relevant Assessment Year Is 2018-19. 2. We Find That This Appeal Is Filed With A Delay Of 17 Days. The Assessee Filed A Petition For Condonation Of Delay Explaining Reasons For The Said Delay & Prayed For Condonation Of That Delay. On Perusal Of The Condonation Petition & Upon Hearing The Ld. Ar & Ld. Dr, We Find That The Reasons Explained By The Assessee Are Bonafide & Therefore, The Delay Is Condoned & Admitted The Appeal For Adjudication.

For Appellant: Shri D. Anand, AdvocateFor Respondent: Ms. Gauthami Manivasagam, JCIT
Section 142(1)Section 143(2)Section 145ASection 250Section 56(2)(viii)Section 57

The DCIT (Int.Taxa.), Vadodara vs. Shri Ajoy Kanaiyalal Khandheria, Vadodara

In the result, the appeal of the assessee is treated as partly allowed for statistical purposes

ITA 451/AHD/2019[2014-15]Status: HeardITAT Ahmedabad10 Feb 2025AY 2014-15

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं /Ita No.451/Ahd/2024 िनधा"रण वष" /Assessment Year : 2012-13 Ranjitsinh Narsinh Vaghela The Income Tax Officer बनाम/ 3337, Nr. Palaiya Mahakali Ward-3 V/S. Mandir Gandhinagar Pethapur, Gandhinagar Gandhinagar – 382 610 "थायी लेखा सं./Pan: Afepv 3269 D (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee By : Shri Hardik Vora, Advocate Revenue By : Shri R.N. Dsouza, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 10/01/2025 घोषणा की तारीख /Date Of Pronouncement: 15/01/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: This Appeal Has Been Preferred By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi [Hereinafter Referred To As “Cit(A)”], Dated 19/01/2024, For The Assessment Year (Ay) 2012-13, Which Upheld The Order Of The Assessing Officer [Hereinafter Referred To As “Ao”] Dated 30/12/2019, Passed Under Section 144 R.W.S. 147 Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"]. Ranjitsinh Narsinh Vaghela Vs. Ito Asst. Year : 2012-13

For Appellant: Shri Hardik Vora, AdvocateFor Respondent: Shri R.N. Dsouza, CIT-DR
Section 10(37)Section 144Section 147Section 148

Ranjitsinh Narsinh Vaghela, Gandhinagar vs. The Income Tax Officer, Ward-3, Gandhinagar

In the result, the appeal of the assessee is treated as partly allowed for

ITA 451/AHD/2024[2012-13]Status: DisposedITAT Ahmedabad15 Jan 2025AY 2012-13

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita No.451/Ahd/2024 निर्धारण वर्ष / Assessment Year : 2012-13 Ranjitsinh Narsinh Vaghela 3337, Nr. Palaiya Mahakali Mandir Pethapur, Gandhinagar Gandhinagar – 382 610 बनाम / V/S. The Income Tax Officer Ward-3 Gandhinagar स्थायी लेखा सं./Pan: Afepv 3269 D (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Assessee By: Shri Hardik Vora, Advocate Revenue By : Shri R.N. Dsouza, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 10/01/2025 घोषणा की तारीख / Date Of Pronouncement: 15/01/2025 आदेश/Order Per Makarand V. Mahadeokar, Am: This Appeal Has Been Preferred By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi (Hereinafter Referred To As “Cit(A)”], Dated 19/01/2024, For The Assessment Year (Ay) 2012-13, Which Upheld The Order Of The Assessing Officer [Hereinafter Referred To As “Ao"] Dated 30/12/2019, Passed Under Section 144 R.W.S.147 Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"].

For Appellant: Shri Hardik Vora, AdvocateFor Respondent: Shri R.N. Dsouza, CIT-DR
Section 10(37)Section 144Section 147Section 148