Section 28(1) of the Income Tax Act

Income-tax Act, 2025: s.26

Section 28(1) falls under section 28 of the Income-tax Act, 1961, which corresponds to section 26 (Income under head “Profits and gains of business or profession") of the Income-tax Act, 2025.

Read section 26 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 28(1) is CIT v. Karnal Co-operative Sugar Mills Ltd. (243 ITR 2), cited in 125 of the 45 judgments on BharatTax that turn on this section.

Leading authorities on Section 28(1)

CIT v. Karnal Co-operative Sugar Mills Ltd.
243 ITR 2 · 2000 · Supreme Court
125
citing judgments

Income earned from deposits or investments directly and inextricably linked to the acquisition of assets or the setting up of a business project during its construction period is incidental to the asset acquisition, reducing the project cost, or constitutes business receipts eligible for relevant deductions, rather than 'income from other sources'.

Karnataka in CIT v. Velankani Information Systems (P) Ltd.
35 Taxmann.com 1 · 2013 · High Court
10
citing judgments

Rental income derived from specialized buildings with comprehensive and inseparable facilities, leased out as part of a business, is assessable as business income, not income from house property. This is particularly true when the agreements for letting the building and providing services are contemporaneous, with the overall object being the enjoyment of the entire property as a whole for carrying on business.

CIT v. Information Technology Park Ltd.
46 Taxmann.com 239 · 2014 · High Court
6
citing judgments

Judgments on Section 28(1)

Jaiprakash Associates Limited vs. The Office of the Commissioner of Customs Air Cargo Complex Import & Anr

W.P.(C)-10387/2026HC Delhi02 Sept 2026
Section 117Section 28(1)Section 28ASection 31Section 7

Sangeethapriya, Salem vs. DCIT, Circle 1(1), Salem

In the result, appeal filed by the assessee stands partly allowed for statistical purpose

ITA 154/CHNY/2026[2020-21]Status: DisposedITAT Chennai24 Aug 2026AY 2020-21
Section 139Section 142Section 144BSection 147Section 148Section 148ASection 250

Gema Ram Choudhary, Jalore vs. ACIT, Circle, Barmer

In the result, the appeal of the assessee is allowed

ITA 810/JODH/2024[2017-18]Status: DisposedITAT Jodhpur12 Jun 2026AY 2017-18

Bench: Dr. Mitha Lal Meena, Hon’Ble & Shri Sudhir Pareek, Hon’Blegema Ram Choudhary, 01, Opp. Acit/Dcit Cricle, Shivraj Stadium, Bhinmal, Jalore, Barmer Rajasthan, 343029 Pan:Adepc5209N Assessee By Shri Svs Khatri, Ca (Physical) Revenue By Shri Arvind Kumar Gehlot, Addl. Cit-Dr (Virtual) Date Of Hearing 03 / 06 / 2026. Date Of Pronouncement 12 / 06 / 2026. Order Dr. Mitha Lal Meena, A.M.: This Appeal Is Filed By Assessee Against The Order Of Commissioner Of Income Tax, Jaipur-4 [Hereinafter Referred To As The Cit(A)] Dated 23.08.2024 With Respect To The Assessment Years 2017-18, Challenging Therein Chargeability Of Income Disclosed/Surrendered As Business Income During The Course Of Survey Under Section 133A Of The Act Under Section 115Bbe Read With Section 69 Rather Assessing Under Section 28(1)

Section 115BSection 133ASection 143(2)Section 28(1)Section 69Section 69A

Ambay Valley Ltd., Mumbai vs. ACIT, Central Circle- 1, New Delhi

ITA 1434/DEL/2018[2013-14]Status: DisposedITAT Delhi16 Apr 2026AY 2013-14

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumarasst. Cit, M/S. Aamby Valley Ltd., Central Circle-1, R/O Hotels Sahara Star, New Delhi. Vs. Opp. Domestic Airport, Vile Parle (East), Mumbai-400009/ Pan-Aagca0045C (Appellant) (Respondent) M/S. Aamby Valley Ltd., Asst. Cit, R/O Hotels Sahara Star, Central Circle-1, Opp. Domestic Airport, Vs. New Delhi. Vile Parle (East), Mumbai-400009/ Pan-Aagca0045C (Appellant) (Respondent) Assessee By Shri Aditya Vohra, Adv. Ms. Aakriti Bansal, Ca Department By Ms. Monika Singh, Cit-Dr Date Of Hearing 19.01.2026 Date Of Pronouncement 16.04.2026 O R D E R

Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 92CSection 92E

ACIT, Central Circle-1, New Delhi vs. Aamby Valley Ltd., Mumbai

ITA 1352/DEL/2018[2013-14]Status: DisposedITAT Delhi16 Apr 2026AY 2013-14

Bench: Shri S. Rifaur Rahman & Shri Vimal Kumarasst. Cit, M/S. Aamby Valley Ltd., Central Circle-1, R/O Hotels Sahara Star, New Delhi. Vs. Opp. Domestic Airport, Vile Parle (East), Mumbai-400009/ Pan-Aagca0045C (Appellant) (Respondent) M/S. Aamby Valley Ltd., Asst. Cit, R/O Hotels Sahara Star, Central Circle-1, Opp. Domestic Airport, Vs. New Delhi. Vile Parle (East), Mumbai-400009/ Pan-Aagca0045C (Appellant) (Respondent) Assessee By Shri Aditya Vohra, Adv. Ms. Aakriti Bansal, Ca Department By Ms. Monika Singh, Cit-Dr Date Of Hearing 19.01.2026 Date Of Pronouncement 16.04.2026 O R D E R

Section 142(1)Section 143(2)Section 143(3)Section 14ASection 250Section 92CSection 92E

Dy. Commissioner of Income Tax, Central Circle-I Noida, Noida vs. M/S Advant It Park Private Limited, Delhi

Appeal is allowed and order of the High Court is set aside

ITA 5334/DEL/2025[2018-19]Status: DisposedITAT Delhi22 Jan 2026AY 2018-19

Bench: Shri Mahavir Singh & Shri Manish Agarwal

Section 143(3)

Dy. Commissioner of Income Tax, Central Circle-I, Noida vs. M/S Advant It Park Private Limited, Delhi

ITA 5332/DEL/2025[2016-17]Status: DisposedITAT Delhi22 Jan 2026AY 2016-17

Bench: Shri Mahavir Singh & Shri Manish Agarwal

Section 143(3)

Commissioner of Customs (Import) vs. M/S Welkin Foods

C.A. No.-005531 - 2025Supreme Court06 Jan 2026

Bench: HON'BLE MR. JUSTICE J.B. PARDIWALA

Section 46

Pr. Commissioner of Income Tax (Central)-2 vs. Pramaditya

The appeal stands dismissed with no order as to costs

ITA/66/2024HC Delhi02 Sept 2025

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

Section 13Section 23

Mahakoshal Refreactories Pvt Ltd, Mumbai vs. Assistant Commissioner of Income Tax Circle 15(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 930/MUM/2025[2017-18]Status: DisposedITAT Mumbai16 Jun 2025AY 2017-18

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri. Kantilal Gugalia, CAFor Respondent: Smt. Sanyogita Nagpal, CIT DR
Section 143(3)Section 37(1)

Metal Box India Ltd., Kolkata vs. DCIT, Cir-11(1), Kol, Kolkata

The appeal of the assessee is allowed for statistical purposes

ITA 453/KOL/2023[2013-14]Status: DisposedITAT Kolkata10 May 2024AY 2013-14

Bench: Shri Sanjay Garg & Shri Rakesh Mishraassessment Year: 2013-14

For Appellant: Shri Manish Tiwari, ARFor Respondent: Shri P. P. Barman, Addl. CIT, Sr. DR
Section 14ASection 250

Principal Commissioner of Income Tax-3 vs. M/S Shriram Chits Pvt. Ltd

THE APPEALS ARE DISMISSED

ITTA/630/2018HC Telangana02 Nov 2023

Bench: P.SAM KOSHY,N.TUKARAMJI

For Appellant: SRI J.V. PRASAD, SC FOR INCOME TAXFor Respondent: MAHESWARA RAO KUNCHEAM
Section 151Section 260

Commr.of Customs (Import) Mumbai vs. M/S Ganpati Overseas Thr. Its Proprietor Shri Yashpal Sharma

C.A. No.-004735-004736 - 2009Supreme Court06 Oct 2023

Bench: HON'BLE MRS. JUSTICE B.V. NAGARATHNA

Section 108Section 130

ACIT-2(2)(1), Mumbai vs. M/S. Messe Frankfurt Trade Fairs India Pvt. Limited, Mumbai

In the result, the appeal filed by the revenue and the Cross Objection of the assessee are partly allowed

ITA 3077/MUM/2022[2015-16]Status: DisposedITAT Mumbai25 Aug 2023AY 2015-16

Bench: Shri Amit Shukla () & Smt. Padmavathy S. ()

Section 115JSection 32

Prabhudas Lilaldhar P. Ltd, Mumbai vs. Addl CIT RG 4(2), Mumbai

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

ITA 4202/MUM/2016[2011-12]Status: DisposedITAT Mumbai07 Feb 2023AY 2011-12

Bench: Shri B.R. Baskaran (Am) & Shri Rahul Chaudhary (Jm)

Section 14ASection 36(1)(ii)Section 40Section 40A(2)(b)

S C Gokarna vs. State of Karnataka

WP/48823/2019HC Karnataka08 Dec 2022

Bench: The Hon'Ble Mr.Justice S.R.Krishna Kumar

Section 4

C. Munireddy vs. State of Karnataka

WP/7752/2020HC Karnataka08 Dec 2022

Bench: The Hon'Ble Mr.Justice S.R.Krishna Kumar

DCIT, Circle - 12(1), Kolkata vs. M/S. Amri Hospitals Ltd., Kolkata

In the result, the appeal filed by the Revenue is partly allowed for statistical purposes

ITA 977/KOL/2018[2014-15]Status: DisposedITAT Kolkata20 Oct 2022AY 2014-15

Bench: Dr. Manish Borad & Sri Sonjoy Sarma

Section 143(2)Section 143(3)Section 250Section 37Section 37(1)

Mr. Jay Ashkaran Shah, Mumbia vs. Income Tax Officer 18(1)(5), Mumbai

In the result, appeal of the assessee is allowed for statistical purpose

ITA 5596/MUM/2019[2014-15]Status: DisposedITAT Mumbai03 May 2021AY 2014-15

Bench: Shri Pramod Kumar, Vice- & Shri Vikas Awasthyआअसं. 5596/मुं/2019 ("न. व .2014-15) Mr. Jay Ashkaran Shah, 7, Kolbhat Lane, Kalbadevi Road, Mumbai 400 002 Pan: Aykps9495B ...... अपीलाथ" /Appellant बनाम Vs. Income Tax Officer 18(1)(5), Earnest House, Nariman Point, Mumbai 400 021. ..... ""तवाद"/Respondent

For Appellant: Shri Mihir NaniwadekarFor Respondent: Ms. Usha Gaikwad
Section 28(1)Section 36(1)(vii)

Dy. Commissioner of Income Tax, Circle-16(2) Hyd, Hyderabad vs. Margadarsi Chit Fund Private Limited, Hyderabad

In the result, appeal of the Revenue is partly allowed for statistical purposes as indicated herein above

ITA 1565/HYD/2017[21013-14]Status: DisposedITAT Hyderabad08 Oct 2020

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamony(Through Virtual Hearing) Assessment Year:2013-14 Dcit, Vs. Margadarsi Chit Fund Circle-16(2), Private Limited, Hyderabad. Hyderabad. Pan: Aabcm 4751 G (Appellant) (Respondent) Assessee By: Shri V. Siva Kumar Revenue By: Smt. Divya K.J, Dr Date Of Hearing: 06/10/2020 Date Of Pronouncement: 08/10/2020 Order Per A. Mohan Alankamony, Am.:

For Appellant: Shri V. Siva KumarFor Respondent: Smt. Divya K.J, DR
Section 143(3)Section 36(2)