Section 28 of the Income Tax Act

Income-tax Act, 2025: s.26

Section 28 of the Income-tax Act, 1961 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 is CIT v. Tata Elxsi Ltd. (349 ITR 98), cited in 818 of the 1,686 judgments on BharatTax that turn on this section.

Leading authorities on Section 28

CIT v. Tata Elxsi Ltd.
349 ITR 98 · 2012 · High Court
818
citing judgments

When computing deduction under Section 10A, if communication or telecommunication expenses are excluded from export turnover, they must also be excluded from total turnover to maintain consistency and apply the ordinary meaning of 'turnover' in context.

CIT v. Vinay Cements Ltd.
213 CTR 268 · 2007 · Supreme Court
422
citing judgments

Employees' contributions to provident fund and ESI are allowable as a deduction under Section 36(1)(va) read with Section 2(24)(x) if deposited by the assessee before the due date for filing the income tax return.

Brooke Bond India Ltd. v. CIT
225 ITR 798 · 1997 · Supreme Court
228
citing judgments

Expenditure incurred for increasing a company's share capital or expanding its capital base, such as expenses related to the issue of shares, constitutes capital expenditure. Such expenses are not deductible as revenue expenditure under Section 37(1) of the Income-tax Act, 1961, even if they incidentally benefit the business.

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.

Badridas Daga v. CIT
34 ITR 10 · 1958 · Supreme Court
181
citing judgments

A loss incurred by a businessman, such as money lost or advances written off, if it arises in the ordinary course of business, is a deductible trading loss. Such a loss is allowable as it is inherent or incidental to the business operations.

Mahender Pal Narang v. CBDT
161 Taxmann.com 301 · 2024 · High Court
178
citing judgments

Interest received as enhanced compensation under Section 28 of the Land Acquisition Act, 1894, for compulsory acquisition of land is taxable as "income from other sources" under Sections 56(2)(viii) and 57(iv) of the Income-tax Act, 1961, and is not exempt under Section 10(37).

Lissie Medical Institutions v. CIT
348 ITR 344 · 2012 · High Court
164
citing judgments

The Kerala High Court held that charitable institutions claiming exemption under Section 11 are not entitled to claim depreciation on assets used for charitable purposes, taking a view contrary to most other High Courts.

CIT v. Ganpat Ram Bisnoi
296 ITR 292 · 2008 · High Court
145
citing judgments

An assessment order cannot be revised under Section 263 for being erroneous due to a perceived lack of enquiry if the Assessing Officer has already conducted an enquiry, applied their mind, and accepted the assessee's explanation.

Movaliya Bhikhubhai Balabhai v. ITO TDS
388 ITR 343 · 2016 · High Court
128
citing judgments

Interest paid on compensation or enhanced compensation for compulsory acquisition of land forms part of the compensation itself and is not taxable as interest income under section 56(2)(viii) or section 145A.

Topman Exports v. CIT
342 ITR 49 · 2012 · Supreme Court
121
citing judgments

Export incentives, such as DEPB (Duty Entitlement Pass Book) and advance license benefits, constitute income taxable on an accrual basis under Section 28 of the Income-tax Act. Profit arising on the transfer of DEPB is not eligible for deduction under Section 80HHC.

Judgments on Section 28

M/S. R.B. Polymers Ltd., Kolkata vs. DCIT, Circle - 4, Kolkata

Appeal is partly allowed in above terms

ITA 456/KOL/2018[2010-11]Status: DisposedITAT Kolkata12 Jun 2020AY 2010-11

Bench: Shri P.M. Jagtap, V.P & Shri S. S. Godara, Jm आयकर अपीलसं./I.T.A No.456/Kol/2018 ("नधा"रण वष" / Assessment Year: 2010-11) M/S Rb Polymers Ltd. Vs. Dcit, Circle-4, Kolkata 25, R.N. Mukherjee Road, 4Th Floor, Suite-F, Kolkata-1. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aabcr3117R (Appellant) .. (Respondent) Appellant By : Shri Siddharth Agarwal, Advocate Respondent By : Shri Dhrubajyoti Ray, Sr. Dr सुनवाई क" तार"ख/ Date Of Hearing : 21/02/2020 घोषणा क" तार"ख/Date Of Pronouncement : 12/06/2020 आदेश / O R D E R Per Shri S. S. Godara: This Assessee’S Appeal For Assessment Year 2010-11 Arises Against The Commissioner Of Income Tax (A) - 2, Kolkata Dated 20.02.2018 Passed In Case No.1220/Cit(A)-2/14-15 Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused. 2. The Assessee’S First & Former Substantive Ground Challenges Correctness Of Both The Lower Authorities’ Action Invoking Section 14A R.W.R 8D(2)(Ii) Disallowance Of Proportionate Interest Amounting To Rs.75614/- Pertaining To Its Exempt Income. Suffice To Say, We Notice At The Outset That The Assessee’S Investments As On 31.03.2009 & 31.03.2010 Read Figures Of Rs.1,71,25,754/- & 1,93,49,912/- (Difference Of Rs.22,24,158/-) As Against Its Non-Interest Bearing Funds In The Nature Of Share Capital Along With Reserves & Surplus Of

For Appellant: Shri Siddharth Agarwal, AdvocateFor Respondent: Shri Dhrubajyoti Ray, Sr. DR
Section 143(3)Section 14ASection 28Section 36(2)(i)Section 37

Hindustan Steelworks Construction Limited, Kolkata vs. ITO, Ward - 12(1), Kolkata

Appeal is allowed in above terms

ITA 1209/KOL/2018[2007-08]Status: DisposedITAT Kolkata12 Jun 2020AY 2007-08

Bench: Shri P.M. Jagtap, V.P & Shri S. S. Godara, Jm आयकर अपीलसं./I.T.A No.1209/Kol/2018 ("नधा"रण वष" / Assessment Year: 2007-08) Hindustan Steelworks Construction Vs. Ito, Ward-12(1), Kolkata Ltd. 5/1, Commissionrate Road, (Hastings) Kolkata – 700022(W.B) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaach9524R (Appellant) .. (Respondent) Appellant By : Shri S.M. Surana, Adv./H.V. Bhardwaj, Fca/Swaraj Kr., Fca Respondent By : Smt. Ranu Biswas Meena, Dr सुनवाईक"तार"ख/ Date Of Hearing : 13/02/2020 घोषणाक"तार"ख/Date Of Pronouncement : 12/06/2020 आदेश / O R D E R Per Shri S. S. Godara: This Assessee’S Appeal For Assessment Year 2007-08 Arises Against The Commissioner Of Income Tax (A) - 4, Kolkata Dated 01.03.2018 Passed In Case No.1999/Cit(A)-4/2014-15/Kol Involving Proceedings U/S 143(3) Of The Income Tax Act, 1961; In Short ‘The Act’. Heard Both The Parties. Case File Perused. 2. For The Reasons Stated In Assessee’S Petition Dated 01.06.2018 & On Account Of No Objection From Department Side, We Condone Four Days’ Delay In Filing Of The Instant Appeal. 3. It Transpires At The Outset That The Assessee Has Raised An Additional Ground Challenging Validity Of Reopening Initiated U/S 148/147 Of The Act. A Very Strong Objection Has Come From The Revenue Side That This Additional Ground Does Not Deserve To Be Admitted At Second Appellate Stage. We Find No Merit In Revenue’S

For Appellant: Shri S.M. Surana, Adv./H.V. Bhardwaj, FCA/Swaraj Kr., FCAFor Respondent: Smt. Ranu Biswas Meena, DR
Section 143(3)Section 148Section 28

The Asstt. Commissioner of Income Tax, Vapi Circle, Vapi vs. M/S. Mitsu Limited, Daman

In the result, the appeal of the Revenue is dismissed

ITA 3510/AHD/2016[2000-01]Status: DisposedITAT Surat04 May 2020AY 2000-01

Bench: Shri Sandip Gosain & Shri O. P. Meenav. ""यथ"/Respondent आ.अ.सं././././I "नधा"र अपीलाथ" Appellant S .T.A No. ण N वष"/A Y: 1 1671/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2006 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 2 1371/Ah 2002- Assistant V. M/S. Mitsu Limited, D/2006 03 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q Co.No.1 2002- M/S. Mitsu Limited, V. Assistant 3 84/Ahd/ 03 304/2, Iind Phase, Commissioner Of 2006 Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 4 1672/Ah 2003- M/S. Mitsu Limited, V. Assistant D/2006 04 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 5 1764/Ah 2003- Assistant V. M/S. Mitsu Limited, D/2006 04 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q 6 1000/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2016 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 7 3510/Ah 2000- Assistant V. M/S. Mitsu Limited, D/2016 01 Commissioner Of Page 2 Of 83 Mitsu Ltd. V. Acit- Vapi/I.T.A. No.1671-1371,Co-184,1672-1764,1614 &1000/Ahd/2006/A.Y.02-03,03-04,06-07.02-03 Income Tax-Vapi 304/2, Iind Phase, Circle, Vapi Gidc, Vapi 396195 Pan: Aaccm 2764 Q

Section 143

M/S. Mitsu Private Limited, Vapi vs. The ACIT, Vapi Circle, Vapi

In the result, the appeal of the Revenue is dismissed

ITA 1000/AHD/2016[2002-03]Status: DisposedITAT Surat04 May 2020AY 2002-03

Bench: Shri Sandip Gosain & Shri O. P. Meenav. ""यथ"/Respondent आ.अ.सं././././I "नधा"र अपीलाथ" Appellant S .T.A No. ण N वष"/A Y: 1 1671/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2006 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 2 1371/Ah 2002- Assistant V. M/S. Mitsu Limited, D/2006 03 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q Co.No.1 2002- M/S. Mitsu Limited, V. Assistant 3 84/Ahd/ 03 304/2, Iind Phase, Commissioner Of 2006 Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 4 1672/Ah 2003- M/S. Mitsu Limited, V. Assistant D/2006 04 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 5 1764/Ah 2003- Assistant V. M/S. Mitsu Limited, D/2006 04 Commissioner Of 304/2, Iind Phase, Income Tax-Vapi Gidc, Vapi 396195 Circle, Vapi Pan: Aaccm 2764 Q 6 1000/Ah 2002- M/S. Mitsu Limited, V. Assistant D/2016 03 304/2, Iind Phase, Commissioner Of Gidc, Vapi 396195 Income Tax-Vapi Pan: Aaccm 2764 Q Circle, Vapi 7 3510/Ah 2000- Assistant V. M/S. Mitsu Limited, D/2016 01 Commissioner Of Page 2 Of 83 Mitsu Ltd. V. Acit- Vapi/I.T.A. No.1671-1371,Co-184,1672-1764,1614 &1000/Ahd/2006/A.Y.02-03,03-04,06-07.02-03 Income Tax-Vapi 304/2, Iind Phase, Circle, Vapi Gidc, Vapi 396195 Pan: Aaccm 2764 Q

Section 143

DCIT Central Circle 1(1), Chennai vs. Ecci Info Park Limited, Chennai

In the result, the appeal filed by the Revenue is dismissed and the Cross

ITA 1369/CHNY/2018[2006-07]Status: DisposedITAT Chennai13 Mar 2020AY 2006-07

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A. No.1369/Chny/2018 िनधा"रण वष"/Assessment Year: 2006-07 & C.O. No.127/Chny/2018 [In I.T.A. No.1369/Chny/2018] The Deputy Commissioner Of M/S. Ecci Info Park Limited, Income Tax, Central Circle 1(1), Vs. Old No. 4, New No. 3, Velayutham Chennai 600 034. Street, Nungambakkam, Chennai 600 034. [Pan: Aabce4585G] (अपीलाथ" /Appellant) (Respondent/Cross Objector) अपीलाथ" की ओर से / Appellant By : Shri A. Sundararajan, Addl. Cit ""थ" की ओर से/Respondent By : Ms. Sriniranjani, Advocate सुनवाई की तारीख/ Date Of Hearing : 05.03.2020 घोषणा की तारीख /Date Of Pronouncement : 13.03.2020 आदेश /O R D E R Per Duvvurul Rl Reddy: The Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) 13, Chennai Dated 01.12.2017 Relevant To The Assessment Year 2006-07. 2. The Appeal Filed By The Revenue Is Delayed By 4 Days, For Which, The Revenue Has Filed A Petition For Condonation Of The Delay, To Which; The Ld. Counsel For The Assessee Has Not Raised Any Serious Objection. Consequently, Since The Revenue Was Prevented By Sufficient Cause, The Delay Of 4 Days In 2

For Appellant: Shri A. Sundararajan, Addl. CITFor Respondent: Ms. Sriniranjani, Advocate
Section 28