Section 5(2)(a) of the Income Tax Act

Income-tax Act, 2025: s.5

Section 5(2)(a) falls under section 5 of the Income-tax Act, 1961, which corresponds to section 5 (Scope of total income) of the Income-tax Act, 2025.

Read section 5 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 5(2)(a) is Performing Rights Society Ltd. & Anr. v. CIT & Ors. (106 ITR 11), cited in 20 of the 28 judgments on BharatTax that turn on this section.

Leading authorities on Section 5(2)(a)

Performing Rights Society Ltd. & Anr. v. CIT & Ors.
106 ITR 11 · 1977 · Supreme Court
20
citing judgments

Income accrues or arises in India if it is received in India, irrespective of where the agreement was executed. The question of deemed accrual under Indian tax law becomes irrelevant in such cases.

Smt. Susila Ramasamy v. ACIT
37 SOT 146 · 2010 · ITAT
14
citing judgments

Where an assessee transfers funds from an NRE account abroad to an NRE account in India through banking channels, the onus to explain the source of funds under Section 69 is discharged, making such remittances not taxable under Section 5(2)(b).

CIT v. AP Kalyanakrishnan
195 ITR 534 · 1992 · High Court
8
citing judgments
Raghava Reddi & Another v. Commissioner of Income Tax, A.P
44 ITR 720 · 1962 · Supreme Court
4
citing judgments
396 ITR 406 (Calcutta) 2. Director of Income-tax (International Taxation) v. Prahlad Vijendra Rao
10 Taxmann.com 238 · 2011 · High Court
3
citing judgments
Pramod Kumar Sapra v. Income Tax Officer, Ward-3, Panipat*
87 Taxmann.com 98 · 2017 · High Court
3
citing judgments

Judgments on Section 5(2)(a)

The Deputy Commissioner of Income Tax, Circle-1(1), Guntur vs. Chukkapalli Mallikarjuna, Guntur

In the result, appeal filed by the Revenue is dismissed

ITA 456/VIZ/2018[2015-16]Status: DisposedITAT Visakhapatnam03 May 2019AY 2015-16

Bench: Shri V. Durga Rao, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bledcit, Circle-1(1), Vs. Chukkapalli Mallikarjuna, Guntur. D.No. 6-20, Main Road, Duggirala, Guntur District. Pan No. Acnpc 9354 J (Appellant) (Respondent)

For Appellant: Shri Mohd. Afzal – AdvocateFor Respondent: Smt. Suman Malik – Sr.DR
Section 5(2)Section 5(2)(a)

DCIT (It) 4(2)(2), Mumbai vs. Star Cruise (India) Travel Services P.Ltd, Mumbai

In the result, the appeal of Revenue is dismissed

ITA 6285/MUM/2016[2016-17]Status: DisposedITAT Mumbai04 Oct 2018AY 2016-17

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am

For Appellant: ShriFor Respondent: Shri Vipul Joshi, AR
Section 195Section 201Section 201ASection 44BSection 5(2)(a)Section 9(1)(i)

Avdesh Kumar, Ghaziabad vs. DCIT, Circle - 1, Ghaziabad

In the result, the appeal filed by the assessee is allowed

ITA 747/DEL/2018[2013-14]Status: DisposedITAT Delhi30 Jul 2018AY 2013-14

Bench: Sh. R. K. Pandaassessment Year: 2013-14 Avdesh Kumar Dcit, H. No.-941, Krishna Nagar, Vs Circle-1 Bagu, Ghaziabad Ghaziabad Pan Aurpk6861G (Appellant) (Respondent) Appellant By Sh.Vipin Garg, Ca Sh Akhilesh Kumar, Advocate Respondent By Sh. S.L. Anuragi, Sr. Dr Date Of Hearing: 19/07/2018 Date Of Pronouncement: 30/07/2018 Order

Section 6Section 90

Ananth Technologies Limited., Hyderabad vs. Dy. Commissioner of Income Tax, Circle-1(1)., Hyderabad

In the result, the appeal of assessee is allowed

ITA 1246/HYD/2017[2013-14]Status: DisposedITAT Hyderabad20 Jul 2018AY 2013-14

Bench: Shri B. Ramakotaiah & Shri Challa Nagendra Prasad

For Appellant: Shri A.V. Raghuram, ARFor Respondent: Smt. N. Swapna, DR
Section 195Section 40Section 9Section 9(1)(i)

DCIT(It)4(2)(2), Mumbai vs. Star Cruise Management Limited, Mumbai

In the result, these appeals by the Revenue stands dismissed

ITA 2632/MUM/2016[2010-11]Status: DisposedITAT Mumbai02 May 2018AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Ravish Sood, Jm आयकर अपील सं./I.T.A. Nos.2632 & 2633/Mum/2016 ("नधा"रण वष" / Assessment Years: 2010-11 & 2011-12) Dy. Cit(It)-4(2)(2), M/S. Star Cruise Management Limited बनाम/ Scindia House, Ballard Pier, C/O. Kanodia Chauhan & Co., Cas., G- N.M. Road, Mumbai-400 038 15, Everest, Tardeo Road, Vs. Mumbai-400 034 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aahcs 0352 F (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri M. V. Rajguru ""यथ" क" ओर से/Respondent By : Shri Vipul Joshi सुनवाई क" तार"ख / : 19.04.2018 Date Of Hearing घोषणा क" तार"ख / : 02.05.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: These Are Appeals By The Revenue Against The Respective Orders Of The Ld. Commissioner Of Income Tax (Appeals), Pertaining To The Assessment Years 2010-11 & 2011-12. Since The Issues Are Common & Connected & The Appeals Were Heard Together These Have Been Disposed Of By This Common Order.

For Appellant: Shri M. V. RajguruFor Respondent: Shri Vipul Joshi
Section 5(2)(a)Section 9(1)

The Income Tax Officer, Ward - IV(1), Jalandhar vs. Sh. Rajesh Joshi, Jalandhar

In the result, the Revenue’s appeal is allowed for statistical purposes

ITA 510/ASR/2017[2011-12]Status: DisposedITAT Amritsar29 Jan 2018AY 2011-12

Bench: Sh. Sanjay Arora & Sh. N.K.Choudhryi.T.A No.510(Asr)/2017 Assessment Year:2011-12

For Appellant: Sh. Rajeev Gubgotra (DR)For Respondent: Sh. Ashray Sarna (CA)
Section 143(3)Section 2(42)Section 6Section 6(1)

DDIT(It)-1(1), Kolkata vs. Mr. Gautam Bhattacharya, Kolkata

In the result, appeal of the revenue is dismissed

ITA 1986/KOL/2014[2011-2012]Status: DisposedITAT Kolkata19 Jan 2018AY 2011-2012

Bench: Sri J. Sudhakar Reddy, Hon’Ble & Sri Aby T. Varkey, Hon’Ble]

Section 250Section 5(2)Section 5(2)(a)

Shri Tapas Kumar Bandopadhyay, Kolkata vs. DCIT, (It), 3(1), Kolkata

In the result, appeal of assessee is dismissed

ITA 70/KOL/2016[2010-2011]Status: DisposedITAT Kolkata01 Jun 2016AY 2010-2011

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Manoj Kataruka, AdvocateFor Respondent: Shri A. H. Choudhury, JDIT
Section 143(3)Section 5Section 6