Section 27 of the Income Tax Act
Income-tax Act, 2025: s.25
Section 27 of the Income-tax Act, 1961 corresponds to section 25 (Interpretation) of the Income-tax Act, 2025.
Read section 25 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 27 is CIT v. Shambhu Investment Pvt. Ltd. (249 ITR 47), cited in 57 of the 110 judgments on BharatTax that turn on this section.
Leading authorities on Section 27
Income from letting out immovable property, even with ancillary services, is taxable as 'Income from House Property' if the dominant intention is to exploit the property itself, not to run a complex business providing integrated services. The classification depends on the assessee's primary object in exploiting the property.
