Section 10(5) of the Income Tax Act

Income-tax Act, 2025: s.11

Section 10(5) 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(5) is DIT (E) v. Apparel Export Promotion Council (245 ITR 492), cited in 193 of the 285 judgments on BharatTax that turn on this section.

Leading authorities on Section 10(5)

DIT (E) v. Apparel Export Promotion Council
245 ITR 492 · 2000 · High Court
193
citing judgments

The rule of consistency applies when facts or legal positions remain unchanged in earlier assessment years, preventing the Revenue from adopting a divergent stance in subsequent years without new material. This ensures stability and predictability in tax assessments.

254 ITR 121 (Guj) ITO v. Gujarat Narmada Valley Fertilizers Co. Ltd.
243 ITR 435 · 2000 · High Court
173
citing judgments
247 ITR 305 (Guj) CIT v. Nestle India Ltd.
140 ITR 832 · 1983 · High Court
172
citing judgments

An employer is not in default under section 201 if they have made a bona fide estimate of employee income and deducted tax at source based on that estimate.

CIT vs. Nicholas Piramal India Ltd (2008) 299 ITR 0356 (BOMBAY); CIT v. Semiconductor Complex Ltd.
282 ITR 263 · 2006 · High Court
159
citing judgments

An employer making a bona fide estimate of taxable salary income is acting in accordance with established legal precedent.

CIT v. ITI Ltd.
313 ITR 1 · 2009 · Supreme Court
142
citing judgments

An employer is not statutorily obligated to collect evidence from employees regarding the actual utilization of amounts paid towards leave travel concession or conveyance allowance, unless specific requirements are mandated by law or a CBDT circular.

State Bank of India v. Assistant Commissioner of Income-tax
144 Taxmann.com 131 · 2022 · Supreme Court
35
citing judgments

An assessee is required to deduct tax at source on reimbursements, even if the assessee acted under a bona fide belief that such reimbursements were exempt.

CIT v. Alstom Projects India Ltd.
394 ITR 141 · 2017 · High Court
18
citing judgments

The Transfer Pricing Officer (TPO) lacks jurisdiction to propose adjustments on transactions with unrelated third parties, as Chapter X provisions apply only to specified domestic transactions.

(para 6). (b) Hero MotoCorp Ltd. v. Additional CIT, Range-12, New Delhi
156 TTJ 139 · 2013 · ITAT
14
citing judgments

Payments for sponsorship rights, such as title sponsorship or being an "Official Partner" of an event, are not considered royalty income for the use of trademarks or brand names under Section 9(1)(vi). Consequently, withholding tax obligations under Section 195 may not apply to such payments.

India Vs Assistant Commissioner of Income of India v. Assistant Commissioner of Income-tax, TDS
123 Taxmann.com 447 · 2021 · Reported
13
citing judgments

An assessee cannot be held in default for non-deduction of TDS if they held a bona fide belief that tax was not deductible on certain reimbursements, especially when the issue concerns LFC reimbursements to employees.

Lifestyle International (P.) Ltd. v. Assistant Commissioner of Income-tax
141 Taxmann.com 559 · 2022 · Reported
12
citing judgments

Orders passed under section 201(1)/201(1A) of the Income-tax Act are only applicable for financial year 2014-15 onwards and not for any prior financial year, as they are time-barred. Consequently, proceedings flowing from invalid orders are annulled.

Judgments on Section 10(5)

State Bank of India, Jetpur vs. DCIT, Circle - TDS, Rajkot

In the result, the appeal of the assessee is allowed

ITA 853/RJT/2026[2016-17]Status: DisposedITAT Rajkot11 Sept 2026AY 2016-17

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./Ita No. 813/Rjt/2026 [ िनधा"रण वष" /Assessment Year: 2017-18 ] State Bank Of India, Ito Tds - 2, Rajkot, Rbo 3 Amreli, Room No. 605, Pratyaksh Kar बनाम/ 1St Floor Library Chowk, Bhavan, Race Course, Ring Road, Vs. Amreli, Gujarat-365601 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Rkts07171D (Appellant) (Respondent) िनधा"रती की ओर से/Appellant By : Shri Lokesh Karia, Ld. Ar राज" की ओर से/Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 814/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2016-17 ] State Bank Of India, Deputy Commissioner Of Income Rajkot Mavdi Plot Branch, 2 Tax Dcit, Vs. Alka Society Corner, Natraj Circle-Tds, Rajkot, Room No: Complex, Chandrashn Nagar 601, 6Th Floor, Pratyaksh Kar Main Road, Near Mavdi Fire Bhavan, Race Course, Ring Road, Station, Rajkot, Gujarat-360004 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacs8577K/Rkts05822F (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 852/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2017-18 ] State Bank Of India Bhaktinagar The Joint Commissioner Of Branch, Income-Tax, Tds Range, Rajkot, Room No:503,5Th Floor Pratyaksh Gondalroad, Opp. R. R. Tractors, Vs. Rajkot, Gujarat-360002 Kar Bhavan, Race Course, Ring Road, Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Tan/Gir No.: Aaacs8577K/Rrt501036A (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr

For Appellant: Shri Lokesh Karia, Ld. ARFor Respondent: Shri Shishir Kumar, Ld. Sr. DR
Section 10(5)Section 192(1)Section 201(1)Section 271C

State Bank of India Bhaktinagar Branch, Rajkot vs. The Joint Commissioner of Income-Tax, TDS Range, Rajkot

In the result, the appeal of the assessee is allowed

ITA 852/RJT/2026[2017-18]Status: DisposedITAT Rajkot11 Sept 2026AY 2017-18

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./Ita No. 813/Rjt/2026 [ िनधा"रण वष" /Assessment Year: 2017-18 ] State Bank Of India, Ito Tds - 2, Rajkot, Rbo 3 Amreli, Room No. 605, Pratyaksh Kar बनाम/ 1St Floor Library Chowk, Bhavan, Race Course, Ring Road, Vs. Amreli, Gujarat-365601 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Rkts07171D (Appellant) (Respondent) िनधा"रती की ओर से/Appellant By : Shri Lokesh Karia, Ld. Ar राज" की ओर से/Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 814/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2016-17 ] State Bank Of India, Deputy Commissioner Of Income Rajkot Mavdi Plot Branch, 2 Tax Dcit, Vs. Alka Society Corner, Natraj Circle-Tds, Rajkot, Room No: Complex, Chandrashn Nagar 601, 6Th Floor, Pratyaksh Kar Main Road, Near Mavdi Fire Bhavan, Race Course, Ring Road, Station, Rajkot, Gujarat-360004 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacs8577K/Rkts05822F (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 852/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2017-18 ] State Bank Of India Bhaktinagar The Joint Commissioner Of Branch, Income-Tax, Tds Range, Rajkot, Room No:503,5Th Floor Pratyaksh Gondalroad, Opp. R. R. Tractors, Vs. Rajkot, Gujarat-360002 Kar Bhavan, Race Course, Ring Road, Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Tan/Gir No.: Aaacs8577K/Rrt501036A (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr

For Appellant: Shri Lokesh Karia, Ld. ARFor Respondent: Shri Shishir Kumar, Ld. Sr. DR
Section 10(5)Section 192(1)Section 201(1)Section 271C

State Bank of India, Rajkot vs. Deputy Commissioner of Income Tax DCIT, Circle-TDS, Rajkot

In the result, the appeal of the assessee is allowed

ITA 814/RJT/2026[2016-17]Status: DisposedITAT Rajkot11 Sept 2026AY 2016-17

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./Ita No. 813/Rjt/2026 [ िनधा"रण वष" /Assessment Year: 2017-18 ] State Bank Of India, Ito Tds - 2, Rajkot, Rbo 3 Amreli, Room No. 605, Pratyaksh Kar बनाम/ 1St Floor Library Chowk, Bhavan, Race Course, Ring Road, Vs. Amreli, Gujarat-365601 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Rkts07171D (Appellant) (Respondent) िनधा"रती की ओर से/Appellant By : Shri Lokesh Karia, Ld. Ar राज" की ओर से/Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 814/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2016-17 ] State Bank Of India, Deputy Commissioner Of Income Rajkot Mavdi Plot Branch, 2 Tax Dcit, Vs. Alka Society Corner, Natraj Circle-Tds, Rajkot, Room No: Complex, Chandrashn Nagar 601, 6Th Floor, Pratyaksh Kar Main Road, Near Mavdi Fire Bhavan, Race Course, Ring Road, Station, Rajkot, Gujarat-360004 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacs8577K/Rkts05822F (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 852/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2017-18 ] State Bank Of India Bhaktinagar The Joint Commissioner Of Branch, Income-Tax, Tds Range, Rajkot, Room No:503,5Th Floor Pratyaksh Gondalroad, Opp. R. R. Tractors, Vs. Rajkot, Gujarat-360002 Kar Bhavan, Race Course, Ring Road, Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Tan/Gir No.: Aaacs8577K/Rrt501036A (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr

For Appellant: Shri Lokesh Karia, Ld. ARFor Respondent: Shri Shishir Kumar, Ld. Sr. DR
Section 10(5)Section 192(1)Section 201(1)Section 271C

State Bank of India Rbo 3 Amreli, Amreli vs. ITO TDS - 2, Rajkot

In the result, the appeal of the assessee is allowed

ITA 813/RJT/2026[2017-18]Status: DisposedITAT Rajkot11 Sept 2026AY 2017-18

Bench: Dr. Arjun Lal Sainiआयकर अपील सं./Ita No. 813/Rjt/2026 [ िनधा"रण वष" /Assessment Year: 2017-18 ] State Bank Of India, Ito Tds - 2, Rajkot, Rbo 3 Amreli, Room No. 605, Pratyaksh Kar बनाम/ 1St Floor Library Chowk, Bhavan, Race Course, Ring Road, Vs. Amreli, Gujarat-365601 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Rkts07171D (Appellant) (Respondent) िनधा"रती की ओर से/Appellant By : Shri Lokesh Karia, Ld. Ar राज" की ओर से/Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 814/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2016-17 ] State Bank Of India, Deputy Commissioner Of Income Rajkot Mavdi Plot Branch, 2 Tax Dcit, Vs. Alka Society Corner, Natraj Circle-Tds, Rajkot, Room No: Complex, Chandrashn Nagar 601, 6Th Floor, Pratyaksh Kar Main Road, Near Mavdi Fire Bhavan, Race Course, Ring Road, Station, Rajkot, Gujarat-360004 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaacs8577K/Rkts05822F (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr आयकर अपील सं./Ita No. 852/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2017-18 ] State Bank Of India Bhaktinagar The Joint Commissioner Of Branch, Income-Tax, Tds Range, Rajkot, Room No:503,5Th Floor Pratyaksh Gondalroad, Opp. R. R. Tractors, Vs. Rajkot, Gujarat-360002 Kar Bhavan, Race Course, Ring Road, Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./Pan/Tan/Gir No.: Aaacs8577K/Rrt501036A (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant By : Shri Dinesh Nair, Ld. Ar Respondent By : Shri Shishir Kumar, Ld. Sr. Dr

For Appellant: Shri Lokesh Karia, Ld. ARFor Respondent: Shri Shishir Kumar, Ld. Sr. DR
Section 10(5)Section 192(1)Section 201(1)Section 271C

State Bank of India, Mumbai vs. Assistant Commissioner of Income Tax, TDS, TDS Circle 2(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3841/MUM/2026[2016-17]Status: DisposedITAT Mumbai09 Sept 2026AY 2016-17

Bench: Shri Om Prakash Kant & Shri Pawan Singh(Physicalhearing) State Bank Of India Acit, Tds, Tds Circle – 2 (2), Branch Jogeshwari East, Vs Mumbai, Room No. 303, 3Rdfloor, Dastur Bldg., Caves Road, Cumballa Hill Mtnl Te Building, Jogeshwari East, Mumbai – 400060. Pedder Road, Dr. Gopalrao Tan:Mums2678D Deshmukh Marg, [Pan: Aaacs8577K] Mumbai – 400026. Appellant / Assessee Respondent / Revenue State Bank Of India, Ito Tds, Tds Ward 2, Thane Thane Jekegram Branch, Vs Mumbai, Ground Floor, 463, Jai Commercial Complex, Reac, Thane, Jk Gram, Khopat Pokhran Road No. Maharashtra – 400602. 1, Thane – 400601, Thane. Tan: Pnes10300D [Pan: Aaacs8577K] Appellant / Assessee Respondent / Revenue Assessee By Shri Dinesh Nair, Ca (Virtually) Revenue By Shri Rajgopal Parthasarathi, Sr. Dr Date Of Hearing 23.07.2026 & 06.07.2026 Date Of Pronouncement 09.09.2026 Order Under Section 254(1) Of Income Tax Act Per Pawan Singh: 1. These Two Appeals Are Filed By Two Different Branch / Entities Of State Bank Of India Against The Separate Orders Of The Learned Cit(A), Both For Assessment Year 2016-17. Though, The Appeals Were Heard On Different Dates, Yet, Based On A Similar Set Of Facts & Having Common Grounds Of Appeal, Therefore, Both The Appeals Are Decided By A Common Order. To Appreciate The Facts, The Facts In Ita No. 3841/Mumbai/2026 Is Treated As The Lead Case. The Decision

Section 192Section 254(1)