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

Income-tax Act, 2025: s.5

Section 5(2)(b) 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)(b) is CIT v. Eon Technology P Ltd. (246 CTR 40), cited in 15 of the 49 judgments on BharatTax that turn on this section.

Leading authorities on Section 5(2)(b)

CIT v. Eon Technology P Ltd.
246 CTR 40 · 2012 · High Court
15
citing judgments

Foreign commission paid to non-residents is not taxable in India, thus no TDS liability arises on such payments.

DCIT v. Sudipta Maity
96 Taxmann.com 336 · 2018 · Reported
10
citing judgments

Income derived by a non-resident for performing services in India is taxable in India, even if the payment is received outside India and the individual is not a resident of India, provided the services are rendered within the territorial limits of India.

A B Hotel Ltd (Rad Hotel) v. DCIT
25 SOT 368 · 2008 · ITAT
5
citing judgments

Judgments on Section 5(2)(b)

ACIT Central Circle 2(3), Ahmedabad vs. Intas Pharmaceuticals Limited, Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITA 1842/AHD/2024[2016-17]Status: DisposedITAT Ahmedabad24 Feb 2026AY 2016-17

Bench: Ms. Suchitra R. Kamble & Shri Narendra Prasad Sinhaasst. Commissioner Of M/S. Intas Pharmaceuticals Ltd., Vs. Income-Tax, Corporate House, S.G. Highway, Central Circle 2(3), Nr. Sola Bridge, Thaltej, Ahmedabad Ahmedabad-380 054 [Pan : Aaaci 5120 L] (Appellant) .. (Respondent) Appellant Represented By : Shri Sher Singh, Cit (Dr) Respondent Represented By: Shri S. N. Soparkar, Sr. Advocate & Ms. Urvashi Sodhan, Ar Date Of Hearing 07.01.2026 Date Of Pronouncement 24.02.2026 O R D E R Per Ms. Suchitra R. Kamble:-

Section 250

Debashis Das, Kolkata vs. ACIT-1(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 947/KOL/2023[2015-16]Status: DisposedITAT Kolkata08 Dec 2025AY 2015-16

Bench: Shri Manjunatha G & Shri Sonjoy Sarmai.T.A. No.947/Kol/2023 Assessment Year: 2015-16 Debashis Das………………………………………................................……….…Appellant Uttara Tritiya Housing Complex, Action Area-Ii, New Town, Near City Center-2, W.B– 700156. [Pan: Aixpd81639Q] Vs. Acit, International Taxaion-1(1), Kolkata ..L..….…..….......……..…...…..…..Respondent Appearances By: Shri Nishant Thakkar, Ar, Appeared On Behalf Of The Assessee. Shri Sallong Yaden, Addl. Cit-Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : September 17, 2025 Date Of Pronouncing The Order : December 08, 2025 Order Per Sonjoy Sarma: This Appeal Filed By The Assessee Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), Nfac, Delhi For Assessment Year 2015–16. The Ld. Cit(A) Sustained The Addition Made By The Assessing Officer In Respect Of Salary Income Earned By The Assessee During His Short-Term Foreign Assignment In The Philippines. 2. The Appeal Has Been Filed By The Assessee With A Delay Of 366 Days. The Assessee Has Filed An Affidavit For Condonation Of The Delay. After Considering The Reasons Cited In The Affidavit For Condonation Of Delay, We Find That The Reasons Are Valid & Consequently, The Delay In Filing The Appeal Is Hereby Condoned & We Proceed To Dispose Of The Appeal On Merits.

Section 5(2)(b)Section 6(1)

M/S Orbit Resorts (P) Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

In the result, appeals of the Assessee stands allowed

ITA 988/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh16 Oct 2025AY 2014-15

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. KRINWANT SAHAY, AM आयकर अपील सं. / ITA No. 343 /Chd/2019 निर्धारण वर्ष / Assessment Years : 2013-14 M/s Orbit Resorts Limited बनाम The DCIT H.No. 256, Sector 9C, Chandigarh Circle 1(1), Chandigarh स्थायी लेखा सं./PAN NO: AAACO4024H अपीलार्थी/Appellant प्रत्यर्थी/Respondent आयकर अपील सं. / ITA No. 988 /Chd/2019 निर्धारण वर्ष / Assessment Years : 2014-15 M/s Orbit Resorts Limited बनाम H.No. 256, Sector 9C, Chandigarh The DCIT Circle 1(1), Chandigarh

For Appellant: Shri Aditya Kumar, C.AFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 143(3)Section 250(6)Section 40Section 9

M/S Orbit Resorts (P) Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

In the result, appeals of the Assessee stands allowed

ITA 343/CHANDI/2019[2013-14]Status: DisposedITAT Chandigarh16 Oct 2025AY 2013-14

Bench: or at the time of hearing of appeal, with the permission of the Hon'ble Income Tax Appellate Tribunal.

For Appellant: Shri Aditya Kumar, C.AFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 143(3)Section 250(6)Section 40Section 9

Foods and Inns Limited, Mumbai vs. DCIT, Circle 2(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 4511/MUM/2025[2017-18]Status: DisposedITAT Mumbai30 Sept 2025AY 2017-18

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

Section 143(3)Section 195Section 40Section 9(1)

The ACIT, Circle-2(1)(1), Ahmedabad vs. M/S. Intas Pharmaceuticals Ltd., Ahmedabad

Accordingly, this ground raised by the Revenue is dismissed

ITA 281/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

Intas Pharmaceuticals Ltd., Ahmedabad vs. The DCIT, Circle-2(1)(1), Ahmedabad

Accordingly, this ground raised by the Revenue is dismissed

ITA 222/AHD/2021[2015-16]Status: DisposedITAT Ahmedabad21 May 2025AY 2015-16

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarasstt.Year : 2015-16 Acit, Cir.2(1)(1) M/S.Intas Pharmaceuticals Ltd Vejalpur Vs Corporate House Ahmedabad. S.G. Highway Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L Asstt.Year : 2015-16 M/S.Intas Pharmaceuticals Ltd Acit, Cir.2(1)(1) Corporate House Vs Vejalpur S.G. Highway Ahmedabad. Nr.Sola Bridge, Thaltej Ahmedabad 380 054. Pan : Aaaci 5120 L (Applicant) (Responent) : Assessee By Shri S.N. Soparkar, Sr.Advocae & Shri Parin Shah, Ar : Shri Ragnesh Das, Cit-Dr Revenue By सुनवाई क" तारीख/Date Of Hearing : 28/04/2025 घोषणा क" तारीख /Date Of Pronouncement: 21/05/2025 आदेश आदेश/O R D E R आदेश आदेश

Section 115JSection 142(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 35Section 36(1)(iii)Section 37Section 92C

Siemens Mobility Gmbh, Germany vs. Assistant Commissioner of Income Tax(International Tax), 4(2)(1), Mumbai

The appeal of the assessee is partly allowed

ITA 4713/MUM/2023[AY 2021-22]Status: DisposedITAT Mumbai27 Feb 2025

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

For Appellant: Shri Nitesh Josh a/w Bhavin
Section 143(3)Section 234ASection 270A

M/S Safa Enterprises, Kodungallur vs. The ACIT, Range 2, Circle 1, Thrissur

In the result, both the appeals filed by the assessee are allowed

ITA 232/COCH/2023[2013-14]Status: DisposedITAT Cochin26 Sept 2024AY 2013-14

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: ------- None ------For Respondent: Smt. Girly Albert, Sr. D.R
Section 195Section 195(2)Section 40Section 5(2)(b)

M/S Safa Enterprises, Kodungallur vs. The ACIT, Range 2, Thrissur

In the result, both the appeals filed by the assessee are allowed

ITA 231/COCH/2023[2010-11]Status: DisposedITAT Cochin26 Sept 2024AY 2010-11

Bench: Shri Waseem Ahmed & Shri Soundararajan K.

For Appellant: ------- None ------For Respondent: Smt. Girly Albert, Sr. D.R
Section 195Section 195(2)Section 40Section 5(2)(b)

Pralay Pradyotkanti Ghosh, Ahmedabad vs. Income -Tax Officer, Ward-1, International Taxation, Ahmedabad

In the result, the appeal of Assessee is partly allowed

ITA 298/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad12 Jul 2024AY 2018-19

Bench: Shri T.R. Senthil Kumar & Shri Makarand V. Mahadeokar, Accountnat Member आयकर अपील सं /Ita No.298/Ahd/2022 "नधा"रण वष" /Assessment Year : 2018-19 Pralay Pradyotkanti Ghosh The Ito बनाम/ 22, Konark Society Ward-1 Nr. Railway Colony International Taxation V/S. Jawahar Chowk, Sabarmati Ahmedabad Ahmedabad – 380 019 "थायी लेखा सं./Pan: Abypg 6172 C (अपीलाथ"/ Appellant) ("" यथ"/ Respondent) Assessee By : Shri Bandish Soparkar, Ar Revenue By : Shri Atul Pandey, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 27/06/2024 घोषणा क" तार"ख /Date Of Pronouncement: 12/07/2024 आदेश/O R D E R Per Shri Makarand V. Mahadeokar, Am: This Appeal Is Filed By The Assessee As Against The Order Passed By The Ld.Commissioner Of Income-Tax(Appeals)-13, Ahmedabad [Hereinafter Referred To As “The Ld.Cit(A)”], Dated 01/06/2022, Arising Out Of The Assessment Order Passed By The Assessing Officer (Ao) Under Section 143(3) R.W.S.144C(3) Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") Dated 22/10/2021 Relevant To The Assessment Year (Ay) 2018-19. Pralay Pradyotkanti Ghosh Vs. Ito (Intl.Taxation) Asst. Year : 2018-19

For Appellant: Shri Bandish Soparkar, ARFor Respondent: Shri Atul Pandey, Sr.DR
Section 139(1)Section 143(3)Section 192Section 2Section 5(2)(b)

Shri Arindam Dasgupta., Kolkata vs. ACIT, It-1(1), Kolkata.

In the result, appeal of the assessee is allowed

ITA 1127/KOL/2023[2014-15]Status: DisposedITAT Kolkata20 Feb 2024AY 2014-15

Bench: Shri Rajesh Kumar]

Section 143(3)Section 5(2)Section 5(2)(b)Section 6

Citicorp Trustee Company Ltd As Trustee for Fccb Issued by Jindal Saw Ltd, Mumbai vs. Deputy Commissioner of Income Tax (Int Taxation)-2(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 784/MUM/2023[2014-2015]Status: DisposedITAT Mumbai21 Aug 2023AY 2014-2015

Bench: Shri Aby T. Varkey, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No. 784/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2014-15) Citicorp Trustee Company बिधम/ Dcit (International Ltd. As Trustee For Fccb Taxation)-2(1)(1) Vs. Issued By Jindal Saw Ltd. 17Th Floor, 1713, Air India Citigroup Centre, Canada Building, Nariman Point, Square, Canary Wharf Mumbai-400021. London E14 5Lb United Kingdom. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaecc0452D (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Anish Thackar/Nikhil Tiwari/Lekh Mehta Revenue By: Shri Amit Kumar Soni (Sr. Dr) सुनवाई की तारीख / Date Of Hearing: 19/07/2023 घोषणा की तारीख /Date Of Pronouncement: 21/08/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Assessing Officer (Ao) Dated 19.01.2023 Passed U/S 143(3) R.W.S. 144C(13) R.W.S 147 Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. At The Outset, The Ld. Ar Of The Assessee Brought To Our Notice The Ground No. 2 Wherein The Assessee Has Raised The Legal Issue Against The Action Of The Ao To Have Reopened The Assessment U/S 147 Of The Act Without Satisfying The Essential Condition Prescribed Under The Act; & Therefore Contends That The Action Of The Ao Is Ab-Initio-Void. 3. In Order To Examine The Legal Issue Raised By The Assessee, It Is Necessary To Look Into The Reasons Recorded By Ao To Reopen The Assessment Which Is Reproduced As Under: -

For Appellant: Shri Anish Thackar/NikhilFor Respondent: Shri Amit Kumar Soni (Sr. DR)
Section 143(3)Section 147Section 201(1)Section 5(2)(b)Section 6

ITO. TDS III (3), Mumbai vs. M/S Petroleum India International, Mumbai

ITA 5921/MUM/2000[1998-99]Status: DisposedITAT Mumbai31 Mar 2023AY 1998-99

Bench: Shri Prashant Maharishi & Shri Kuldip Singh

For Appellant: NoneFor Respondent: Shri B.K. Bagchi, D.R
Section 194Section 194JSection 195Section 201Section 201(1)Section 5(2)(b)Section 9(1)

Income Tax Officer (TDS) III(3), Mumbai vs. M/S Petroleum India International, Mumbai

ITA 5913/MUM/2000[1997-98]Status: DisposedITAT Mumbai31 Mar 2023AY 1997-98

Bench: Shri Prashant Maharishi & Shri Kuldip Singh

For Appellant: NoneFor Respondent: Shri B.K. Bagchi, D.R
Section 194Section 194JSection 195Section 201Section 201(1)Section 5(2)(b)Section 9(1)

ITO, TDS III (3), Mumbai vs. M/S Petroleum India International, Mumbai

ITA 5912/MUM/2000[1996-97]Status: DisposedITAT Mumbai31 Mar 2023AY 1996-97

Bench: Shri Prashant Maharishi & Shri Kuldip Singh

For Appellant: NoneFor Respondent: Shri B.K. Bagchi, D.R
Section 194Section 194JSection 195Section 201Section 201(1)Section 5(2)(b)Section 9(1)

M/S. Birla Corporation Ltd., Unit Satna Cement Works, Satna vs. ITO (It & Tp), Bhopal

In the result, Assessee’s appeals

ITA 34/IND/2020[2011-12]Status: DisposedITAT Indore28 Jan 2022AY 2011-12

Bench: Shri Mahavir Prasad & Shri Manish Boradvirtual Hearing

Section 143(3)Section 5(2)(b)

M/S. Birla Corporation Ltd., Unit Satna Cement Works, Satna vs. ITO (It & Tp), Bhopal

In the result, Assessee’s appeals

ITA 33/IND/2020[2010-11]Status: HeardITAT Indore28 Jan 2022AY 2010-11

Bench: Shri Mahavir Prasad & Shri Manish Boradvirtual Hearing

Section 143(3)Section 5(2)(b)

ACIT, Circle- 47(1), New Delhi vs. J. Kishore Exports, New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1551/DEL/2018[2014-15]Status: DisposedITAT Delhi23 Nov 2021AY 2014-15

Bench: Shri G.S.Pannu & Shri Kul Bharat[Assessment Year : 2014-15] Acit, Vs J.Kishore Exports, Circle-47(1), 558, Katra Ishwar Bhawan, New Delhi. Khari Baoli, New Delhi-110006. Pan-Aagfj9713M Appellant Respondent Appellant By Sh. Ashwani Kalia, Ca Respondent By Sh. Umesh Takyar, Sr.Dr Date Of Hearing 01.11.2021 Date Of Pronouncement 23.11.2021

Section 143(3)Section 195Section 195(2)

ACIT, Circle-16(1), Hyderabad vs. Madhusudan Rao Lagadapati, Hyderabad

In the result, appeal of Revenue is dismissed”

ITA 449/HYD/2017[2012-13]Status: DisposedITAT Hyderabad13 Sept 2021AY 2012-13

Bench: Smt. P. Madhavi Devi & Shri Laxmi Prasad Sahuassessment Year: 2012-13

For Appellant: Sri P. Murali Mohan RaoFor Respondent: Sri Y.V.S.T. Sai, DR
Section 143(3)Section 68