Section 3 of the Income Tax Act

The decision most relied on for Section 3 is Dhoomketu Builders & Development (P.) Ltd. v. ACIT (368 ITR 680), cited in 41 of the 54 judgments on BharatTax that turn on this section.

Leading authorities on Section 3

Dhoomketu Builders & Development (P.) Ltd. v. ACIT
368 ITR 680 · 2014 · High Court
41
citing judgments

A real estate development business is considered 'set up' when the assessee is in a position to undertake activities for the acquisition, development, and exploitation of real estate. Expenses incurred between the setting up and commencement of such a business are allowable, even if no revenue is generated or land is classified as a non-current investment.

CIT v. Autokast Ltd.
248 ITR 110 · 2001 · Supreme Court
41
citing judgments

Interest earned on surplus funds deposited in short-term deposits is chargeable under section 56 as income from other sources. This interest cannot be treated as business income unless it is inextricably linked with the business operations.

ADM Agro Industries Latur and Vizag (P.) Ltd. v. ACIT
174 Taxmann.com 725 · 2025 · High Court
11
citing judgments
Behramji Sorabji Lalkaka v. CIT
16 ITR 301 · 1948 · High Court
8
citing judgments
70 (SC).in ITO v. Girish Kumar Gupta
175 Taxmann.com 1037 · 2025 · Reported
7
citing judgments
PCIT v. Sahara India Financial Corporation Limited
119 Taxmann.com 285 · 2020 · Supreme Court
4
citing judgments
14. Again, in Saroj Mehndi v. ITO
174 Taxmann.com 278 · High Court
4
citing judgments
DCIT v. PPFAS Asst. Management (P) Ltd.
105 Taxmann.com 103 · 2019 · ITAT
3
citing judgments
Small Industries Development Bank of India v. CBDT
440 ITR 80 · Reported
3
citing judgments

Judgments on Section 3

DEPUTY COMMISSIONER OF INCOME TAX, DELHI vs. M/S VESTIGE MARKETING PRIVATE LIMITED, DELHI

ITA 7842/DEL/2025[2022-23]Status: DisposedITAT Delhi20 Mar 2026AY 2022-23

Bench: Shri Before Shri Satbeer Singh Godarabefore Shri Before Shri Satbeer Singh Godarasatbeer Singh Godara & Satbeer Singh Godara & And & Shri Naveen Chandra Shri Naveen Chandra, , , Shri Naveen Chandra Shri Naveen Chandra

For Appellant: Shri Amit Goel and Shri Pranav Yadav, Advocate
Section 132Section 143(3)Section 147Section 37Section 37(1)Section 69A

SREE CAUVERY SOUHARDA CREDIT SAHAKARI SANGHA NIYAMITHA,BENGALURU vs. INCOME TAX OFFICER WARD 1(1)(1), BENGALURU

ITA 1854/BANG/2025[2018-19]Status: DisposedITAT Bangalore12 Mar 2026AY 2018-19

Bench: Shri Waseem Ahmed & Shri Soundararajan K

For Appellant: Smt. Sumana, CAFor Respondent: Shri Subramanian, JCIT (DR
Section 10Section 250Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

LIC HOUSING FINANCE LIMITED,MUMBAI vs. ACIT, MUMBAI

ITA 6974/MUM/2024[2007-08]Status: DisposedITAT Mumbai12 Feb 2026AY 2007-08

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri S.Bhandari and Sri Shreyas Shah,(Adv.)For Respondent: Shri Surendra Mohan,(Sr. DR)

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 32,, KOLKATA vs. ROSELIFE ENCLAVE LLP, KOLKATA

ITA 1666/KOL/2025[2017-2018]Status: DisposedITAT Kolkata10 Feb 2026AY 2017-2018

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

MATSYODARI SHIKSHAN SANSTHAS ANKUSHRAO TOPE JUNIOR COLLEGE, JALNA,JALNA vs. INCOME TAX OFFICER TDS, AURANGABAD

ITA 880/PUN/2025[2016-17]Status: DisposedITAT Pune12 Jan 2026AY 2016-17

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri C N ChobeFor Respondent: Shri Rajesh Gawali, Addl.CIT
Section 200ASection 234E

MATSYODARI SHIKSHAN SANSTHAS ANKUSHRAO TOPE COLLEGE, JALNA,JALNA vs. INCOME TAX OFFICER TDS, AURANGABAD

ITA 878/PUN/2025[2014-2015]Status: DisposedITAT Pune12 Jan 2026AY 2014-2015

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri C N ChobeFor Respondent: Shri Rajesh Gawali, Addl.CIT
Section 200ASection 234E

MATSYODARI SHIKSHAN SANSTHAS ANKUSHRAO TOPE COLLEGE, JALNA,JALNA vs. INCOME TAX OFFICER TDS, AURANGABAD

ITA 877/PUN/2025[2013-2014]Status: DisposedITAT Pune12 Jan 2026AY 2013-2014

Bench: Shri R. K. Panda & Ms. Astha Chandra

For Appellant: Shri C N ChobeFor Respondent: Shri Rajesh Gawali, Addl.CIT
Section 200ASection 234E

KARNATAKA TELECOM DEPARTMENT EMPLOYEES CO-OPERATIVE SOCIETY LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(4), BLR, BANGALORE

In the result, appeals of Revenue in ITA Nos

ITA 1080/BANG/2025[2016-17]Status: DisposedITAT Bangalore31 Dec 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Soundararajan K.Assessment Years: 2016-17

For Appellant: Shri PR Suresh, CAFor Respondent: Shri N Balusamy, JCIT-DR
Section 143(3)Section 147Section 148Section 148ASection 149Section 250Section 80(2)(a)

GUJARAT STATE ELECTRICITY CORPN. LTD.,VADODARA vs. THE DY.CIT, CIRCLE-1(1)(1), VADODARA

In the result, the appeal of the assessee is partly allowed for statistical purposes, while the appeal of the Revenue is dismissed

ITA 1596/AHD/2024[2006-07]Status: DisposedITAT Ahmedabad18 Dec 2025AY 2006-07

Bench: Dr Brr Kumarshri Siddhartha Nautiyalआयकर अपील सं /Ita No. 1596/Ahd/2024 िनधा"रण वष" /Assessment Year : 2006-07

For Appellant: Shri M.J. Shah, Advocate and Shri Jimi Patel, ARsFor Respondent: Shri Sher Singh, CIT-DR
Section 115JSection 143(3)Section 250Section 250(4)

DEPUTY COMMISSIONER OF INCOME TAX, CENTAL CIRCLE, SAMBALPUR vs. SMT. INDRANI PATNAIK, ROURKELA

ITA 179/CTK/2020[2009-10]Status: DisposedITAT Cuttack11 Dec 2025AY 2009-10

Bench: Shri Duvvuru Rl Reddy, Vp & Shri Rajesh Kumar, Am

For Appellant: Shri S.C. Bhadra, ARFor Respondent: Shri Ashim Kumar Chakraborty, DR

MANIKUMARI SAMANCHI,ZAHEERABAD vs. INCOME TAX OFFICER, WARD-1, SANGAREDDY

In the result, the appeal filed by the assessee is allowed in terms of our aforesaid observations

ITA 1344/HYD/2025[2015-16]Status: DisposedITAT Hyderabad10 Dec 2025AY 2015-16

Bench: SHRI RAVISH SOOD, HON’BLE (Judicial Member), SHRI MADHUSUDAN SAWDIA HON'BLE (Accountant Member)

Section 147Section 148Section 148ASection 14BSection 69A

K.Y.S. SPONGE IRON PVT. LTD.,KOLKATA vs. I.T.O., WARD - 3(1),, KOLKATA

Appeal of the assessee is allowed

ITA 2092/KOL/2025[2017-2018]Status: DisposedITAT Kolkata21 Nov 2025AY 2017-2018

Bench: Any Other Issue.

Section 148Section 148ASection 149(1)(b)Section 250Section 68Section 69A

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(2)(1), BANGALORE vs. CANARA BANK (ERSTWHILE SYNDICATE BANK), BANGALORE

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

ITA 1499/BANG/2025[2017-18]Status: DisposedITAT Bangalore06 Nov 2025AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Vishal Bhat - CAFor Respondent: Dr. Manjunath Karkihalli, CIT (DR)
Section 115JSection 211(2)

ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(2)(1), BANGALORE vs. CANARA BANK (ERSTWHILE SYNDICATE BANK), BANGALORE

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

ITA 1498/BANG/2025[2016-17]Status: DisposedITAT Bangalore06 Nov 2025AY 2016-17

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Vishal Bhat - CAFor Respondent: Dr. Manjunath Karkihalli, CIT (DR)
Section 115JSection 211(2)

ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-25, NEW DELHI, DELHI vs. DHARAMPAL SATYAPAL LTD, DELHI

In the result, both the appeals of the revenue are dismissed

ITA 3029/DEL/2025[2013-14]Status: DisposedITAT Delhi30 Sept 2025AY 2013-14

Bench: Shri M. Balaganesh & Shri Sudhir Kumar

For Appellant: Shri R. S. Singhvi, CAFor Respondent: Shri Dayainder Singh Sidhu, CIT DR
Section 148Section 148ASection 149Section 149A

INCOME TAX OFFICER, WARD 10(1), DELHI, DELHI vs. PAWAN GOYAL, DELHI

In the result, appeals of Revenue in ITA Nos

ITA 5537/DEL/2024[2014-15]Status: DisposedITAT Delhi26 Aug 2025AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

For Appellant: Shri Raj Kumar Gupta, CAFor Respondent: Shri Anurag S. Daria, Sr. DR
Section 148Section 148ASection 149

RAMULU BANDI,HYDERABAD vs. ITO., WARD-13(1), HYDERABAD

Appeals of the assessee are dismissed

ITA 1139/HYD/2024[2017-18]Status: DisposedITAT Hyderabad06 Aug 2025AY 2017-18

Bench: Us: Ramulu Bandi, Hyderabad.

Section 143(2)Section 144Section 271ASection 272A(1)(d)Section 69A

RAMULU BANDI,HYDERABAD vs. ITO., WARD-13(1), HYDERABAD

Appeals of the assessee are dismissed

ITA 1126/HYD/2024[2017-18]Status: DisposedITAT Hyderabad06 Aug 2025AY 2017-18

Bench: Us: Ramulu Bandi, Hyderabad.

Section 143(2)Section 144Section 271ASection 272A(1)(d)Section 69A

SATISH NARAYAN TARALE,BELGAVI vs. INTL.TAXATION WARD, PANAJI

ITA 55/PAN/2025[2019-20]Status: DisposedITAT Panaji24 Jul 2025AY 2019-20

Bench: Hon’Ble Shri Pavan Kumar Gadale & Shri G. D. Padmahshaliita Nos. 055/Pan/2025 Assessment Year : 2019-20 Satish Narayan Tarale 35, Laxmi Narayan Niwas, 2Nd Stage, Hanuman Nagar, Belgaum-590001. Pan : Afkpt0032Q . . . . . . . Appellant V/S The Income Tax Officer, International Taxation Ward, Panaji, Goa. . . . . . . . Respondent Appearances Assessee By : Mr Pramod Vaidya [‘Ld. Ar’] Revenue By : Capt. Pradeep Arya [‘Ld. Dr’] सुनवाई की तारीख / Date Of Conclusive Hearing : 11/06/2025 घोषणा की तारीख / Date Of Pronouncement : 24/07/2025 Order Per G. D. Padmahshali; The Captioned Appeal Is Filed By The Assessee Challenges Din & Order No Itba/Ast/F/144/2024- 25/1072202908(1) Dt. 15/01/2025 Passed By The Income Tax Officer, International Taxation Ward, Panaji Goa [‘Ld. Ao’] U/S 144 R.W.S. 144C(13) Of The Income-Tax Act, 1961 [‘The Act’] Anent To Assessment Year 2019-20 [‘Ay’].

For Appellant: Mr Pramod Vaidya [‘Ld. AR’]For Respondent: Capt. Pradeep Arya [‘Ld. DR’]
Section 115BSection 139(1)Section 144Section 144C(1)Section 148Section 253(6)Section 3Section 4Section 6(6)Section 69A

UNITED BANK OF INDIA,KOLKATA vs. DCIT, LTU, CIRCLE - 1, KOLKATA, KOLKATA

In the result, the Revenue’s appeal is dismissed (ITA No

ITA 428/KOL/2018[2013-14]Status: DisposedITAT Kolkata23 Jul 2025AY 2013-14

Bench: the ITAT. The grounds may be extracted for reference:

Section 115JSection 14ASection 15JSection 211Section 250Section 36(1)(viii)

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