Section 5(2) of the Income Tax Act

Income-tax Act, 2025: s.5

Section 5(2) 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) is Commissioner of Income Tax v. Nova Promoters and Finlease (P) Ltd. (342 ITR 169), cited in 658 of the 430 judgments on BharatTax that turn on this section.

Leading authorities on Section 5(2)

Commissioner of Income Tax v. Nova Promoters and Finlease (P) Ltd.
342 ITR 169 · 2012 · High Court
658
citing judgments

To make an addition under Section 68 for unexplained cash credits, the Assessing Officer must conduct proper inquiry into the identity, genuineness, and creditworthiness of the creditor, especially concerning share application money. The assessee's initial discharge of burden by providing necessary details shifts the onus back to the AO for further investigation, including the source of source.

Parimisetti Seetharamamma v. CIT
57 ITR 532 · 1965 · Supreme Court
142
citing judgments

Not all receipts constitute income chargeable to tax. An Assessing Officer cannot reject a prima facie reasonable explanation on mere probabilities or arbitrary grounds, but must disprove facts.

Carborandum Co. v. CIT
108 ITR 335 · 1977 · Supreme Court
87
citing judgments
J.S. Parkar v. V.B. Palekar
94 ITR 616 · 1974 · High Court
58
citing judgments

An assessee found to be the owner of bullion, etc., must explain its source. The Income Tax Officer must find the assessee to be the owner, not merely in possession.

CIT v. Avtar Singh Wadhwan
247 ITR 260 · 2001 · High Court
53
citing judgments

Salary received by a non-resident for services rendered outside India accrues outside India and is not taxable in India. Only salary earned for work performed in India is regarded as income arising in India and is taxable.

ACIT v. Clough Engineering Ltd.
130 ITD 137 · 2011 · ITAT
52
citing judgments

Interest income, such as on income-tax refunds or fixed deposits, derived by a foreign entity with a Permanent Establishment (PE) in India is taxable under DTAA if the debt-claim is effectively connected or attributable to the PE. For DTAA purposes, the terms 'attributable' and 'effectively connected' are considered to have the same meaning.

New India Insurance v. ACIT
18 SOT 51 · 2007 · ITAT
43
citing judgments
DIT (International Taxation) v. PrahladVijendra Rao
198 Taxmann 551 · 2011 · High Court
42
citing judgments
Som Nath Maini v. CIT
306 ITR 414 · 2008 · High Court
38
citing judgments

An Assessing Officer may reject the genuineness of a transaction if the evidence provided by the assessee is not trustworthy, even if the transaction appears to be conducted through cheques or other formal means. The burden of proving the genuineness of a transaction lies primarily on the assessee.

UPS SCS Asia Ltd. v. Asstt. DIT, (International Taxation)
50 SOT 268 · 2012 · ITAT
37
citing judgments

Managerial services require both planning and execution; mere execution of directions from another party does not qualify as managerial services.

Judgments on Section 5(2)

Sunil Kumar Hawelia, Kolkata vs. D.C.I.T., Circle-1(1), Kolkata

In the result, the appeal of the assessee is dismissed as withdrawn

ITA 1233/KOL/2019[2014-15]Status: DisposedITAT Kolkata10 Aug 2022AY 2014-15

Bench: Sri Manish Borad & Sri Sonjoy Sarma

Section 250Section 5(2)

Sri Dinesh Raghani, Kolkata vs. I.T.O., Ward-8(3), Kolkata

In the result, all the appeals of the assessee are dismissed as withdrawn

ITA 975/KOL/2019[2014-15]Status: DisposedITAT Kolkata10 Aug 2022AY 2014-15

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleassessment Year: 2014-15 Shri Kanayalal Raghani Ito, Ward-8(3), Kolkata 1St Floor, Siddha Villa, 27, Vs. Marquis Street, Park Street, Kolkata – 700 016. [Pan: Aclpr 0122 R] (Appellant) (Respondent) Assessment Year: 2014-15 Shri Dinesh Raghani Ito, Ward-8(3), Kolkata 1St Floor, Siddha Villa, 27, Vs. Marquis Street, Park Street, Kolkata – 700 016. [Pan: Acrpr 3416 L] (Appellant) (Respondent) Assessment Year: 2014-15 Shri Dilip Raghani Ito, Ward-8(3), Kolkata 1St Floor, Siddha Villa, 27, Vs. Marquis Street, Park Street, Kolkata – 700 016. [Pan: Acrpr 6566 Q] (Appellant) (Respondent) Present For: Assessee By : None Revenue By : Shri Amal Kamat, Cit & Smt. Ranu Biswas, Acit Date Of Hearing : 04.08.2022 Date Of Pronouncement : 10.08.2022 O R D E R Per Bench: These Three Appeals Filed By Different Assessee’S Are Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-15, Kolkata All Dated 21.02.2019. A.Y. 2014-15 2. In The Captioned Appeals, The Authorised Representative Of The Assessee Has Filed Three Applications Stating That The Appeals Have Been Settled Under The Direct Tax Vivad Se Vishwas Act, 2020. The Assessee Has Duly Filed The Copy Of The Certificate In Form 5 For Full & Final Settlement Of Tax Arrear Under Section 5(2) Read With Section 6 Of The Direct Tax Vivad Se Vishwas Act, 2020. 3. Per Contra, The Ld. Dr Did Not Have Any Objection In This Regard.

For Appellant: NoneFor Respondent: Shri Amal Kamat, CIT & Smt. Ranu Biswas, ACIT
Section 5(2)Section 6

M/S. Subodh Finance Brokers, Kanpur vs. Deputy Commissioner of Income Tax, Central Circle-1, Kanpur

In the result, the appeals of the assessee are dismissed as withdrawn

ITA 583/LKW/2019[2016-17]Status: DisposedITAT Lucknow05 Aug 2022AY 2016-17

Bench: Shri. A. D. Jain & Shri T. S. Kapoor

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Smt. Sheela Chopra, CIT (DR)
Section 5(2)Section 6

M/S. Subodh Finance Brokers, Kanpur vs. Deputy Commissioner of Income Tax, Central Circle-1, Kanpur

In the result, the appeals of the assessee are dismissed as withdrawn

ITA 582/LKW/2019[2015-16]Status: DisposedITAT Lucknow05 Aug 2022AY 2015-16

Bench: Shri. A. D. Jain & Shri T. S. Kapoor

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Smt. Sheela Chopra, CIT (DR)
Section 5(2)Section 6

M/S. Subodh Finance Brokers, Kanpur vs. Deputy Commissioner of Income Tax, Central Circle-1, Kanpur

In the result, the appeals of the assessee are dismissed as withdrawn

ITA 581/LKW/2019[2014-15]Status: DisposedITAT Lucknow05 Aug 2022AY 2014-15

Bench: Shri. A. D. Jain & Shri T. S. Kapoor

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Smt. Sheela Chopra, CIT (DR)
Section 5(2)Section 6

M/S. Subodh Finance Brokers, Kanpur vs. Deputy Commissioner of Income Tax, Central Circle-1, Kanpur

In the result, the appeals of the assessee are dismissed as withdrawn

ITA 580/LKW/2019[2013-14]Status: DisposedITAT Lucknow05 Aug 2022AY 2013-14

Bench: Shri. A. D. Jain & Shri T. S. Kapoor

For Appellant: Shri Rakesh Garg, AdvocateFor Respondent: Smt. Sheela Chopra, CIT (DR)
Section 5(2)Section 6

DCIT (It) 2(1)(1), Mumbai vs. Credit Suisse Ag, Mumbai

In the result, appeal of the Revenue is dismissed and Cross

ITA 14/MUM/2019[2015-16]Status: DisposedITAT Mumbai04 Aug 2022AY 2015-16
Section 143(3)Section 5(2)Section 9(1)(vii)

Muzaffarnagar District Cooperative Bank Ltd., Muzaffarnagar vs. ACIT, Circle- 1, Muzaffarnagar

The appeal are allowed

ITA 8325/DEL/2018[2013-14]Status: DisposedITAT Delhi03 Aug 2022AY 2013-14

Bench: Sh. N. K. Billaiya & Sh. Yogesh Kumar Us

Section 271Section 5

Muzaffarnagar District Cooperative Bank Ltd., Muzaffarnagar vs. ACIT, Circle- 1, Muzaffarnagar

The appeal are allowed

ITA 8323/DEL/2018[2009-10]Status: DisposedITAT Delhi03 Aug 2022AY 2009-10

Bench: Sh. N. K. Billaiya & Sh. Yogesh Kumar Us

Section 271Section 5

Muzaffarnagar District Cooperative Bank Ltd., Muzaffarnagar vs. ACIT, Circle- 1, Muzaffarnagar

The appeal are allowed

ITA 8322/DEL/2018[2008-09]Status: DisposedITAT Delhi03 Aug 2022AY 2008-09

Bench: Sh. N. K. Billaiya & Sh. Yogesh Kumar Us

Section 271Section 5

Warner Bros. Distributing Inc., Mumbai vs. ACIT (It) 4(3)(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 601/MUM/2022[ 2018-19]Status: DisposedITAT Mumbai28 Jul 2022

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blewarner Bros. Distributing Inc. V. Acit (It)-4(3)(2) C/O. Warnere Bros. Pictures India Private Ltd Room No. 1611, 16Th Floor 407, 4Th Floor, Windfall, Air India Building Sahar Plaza Complex Nariman Point Andheri Kurla Road, Jb Nagar Mumbai – 400 021 Andheri (E), Mumbai – 400059 Pan: Aaacw6559R (Appellant) (Respondent) Assessee By : Shri A.F. Jahangir Department By : Ms. Bharati Singh

For Appellant: Shri A.F. JahangirFor Respondent: Ms. Bharati Singh
Section 143(2)Section 144C(1)Section 144C(5)Section 5(2)Section 9(1)(i)Section 9(1)(vi)

ACIT, Central Circle-3, Patna vs. Nitin Kishorepuria, Patna

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

ITA 166/PAT/2019[2015-16]Status: HeardITAT Patna20 Jul 2022AY 2015-16

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleita No.165 & 166/Pat/2019 Assessment Year: 2014-15 & 2015-16 Acit, Central Circle-3, Shri Nitin Kishorepuria Patna 112, Triveni Apartment, Vs. East Boring Canal Road, Patna – 800 001. Pan: Aetpk 4087 N (Appellant) (Respondent) Present For: Assessee By : Shri Shubham Khandelia, Ar Revenue By : Shri Sanjay Mukherjee, Cit Date Of Hearing : 19.07.2022 Date Of Pronouncement : 20.07.2022 O R D E R Per Sonjoy Sarma, Jm: These Appeals Filed By The Revenue Are Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-3, Patna Both Dated 22.03.2019. 2. In This Case, Shri Nitin Kishorepuria, Authorised Representative Of The Assessee Has Moved An Application Informing Us That The Appeals Have Been Settled Under The Direct Tax Vivad Se Vishwas Act, 2020. The Assessee Has Duly Filed The Copy Of The Certificate In Form 5 For Full & Final Settlement Of Tax Arrear Under Section 5(2) Read With Section 6 Of The Direct Tax Vivad Se Vishwas Act, 2020. A.Y. 2014-15 & 2015-16 3. Per Contra, The Ld. Dr Did Not Have Any Objection In This Regard.

For Appellant: Shri Shubham Khandelia, ARFor Respondent: Shri Sanjay Mukherjee, CIT
Section 5(2)Section 6

ACIT, Central Circle-3, Patna vs. Nitin Kishorepuria, Patna

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

ITA 165/PAT/2019[2014-15]Status: HeardITAT Patna20 Jul 2022AY 2014-15

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleita No.165 & 166/Pat/2019 Assessment Year: 2014-15 & 2015-16 Acit, Central Circle-3, Shri Nitin Kishorepuria Patna 112, Triveni Apartment, Vs. East Boring Canal Road, Patna – 800 001. Pan: Aetpk 4087 N (Appellant) (Respondent) Present For: Assessee By : Shri Shubham Khandelia, Ar Revenue By : Shri Sanjay Mukherjee, Cit Date Of Hearing : 19.07.2022 Date Of Pronouncement : 20.07.2022 O R D E R Per Sonjoy Sarma, Jm: These Appeals Filed By The Revenue Are Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-3, Patna Both Dated 22.03.2019. 2. In This Case, Shri Nitin Kishorepuria, Authorised Representative Of The Assessee Has Moved An Application Informing Us That The Appeals Have Been Settled Under The Direct Tax Vivad Se Vishwas Act, 2020. The Assessee Has Duly Filed The Copy Of The Certificate In Form 5 For Full & Final Settlement Of Tax Arrear Under Section 5(2) Read With Section 6 Of The Direct Tax Vivad Se Vishwas Act, 2020. A.Y. 2014-15 & 2015-16 3. Per Contra, The Ld. Dr Did Not Have Any Objection In This Regard.

For Appellant: Shri Shubham Khandelia, ARFor Respondent: Shri Sanjay Mukherjee, CIT
Section 5(2)Section 6

ACIT, Central Circle-3, Patna vs. Bijay Kumar Kishorepuria, Patna

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

ITA 164/PAT/2019[2015-16Q]Status: HeardITAT Patna20 Jul 2022

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleita No.163 & 164/Pat/2019 Assessment Year: 2014-15 & 2015-16 Acit, Central Circle-3, Shri Bijay Kumar Patna Kishorepuria Vs. 112, Triveni Apartment, East Boring Canal Road, Patna – 800 001. Pan: Afopk 4175 M (Appellant) (Respondent) Present For: Assessee By : Shri Shubham Khandelia, Ar Revenue By : Shri Sanjay Mukherjee, Cit Date Of Hearing : 19.07.2022 Date Of Pronouncement : 20.07.2022 O R D E R Per Sonjoy Sarma, Jm: These Appeals Filed By The Revenue Are Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-3, Patna Both Dated 22.03.2019. 2. In This Case, Shri Bijay Kumar Kishorepuria, Authorised Representative Of The Assessee Has Moved An Application Informing Us That The Appeals Have Been Settled Under The Direct Tax Vivad Se Vishwas Act, 2020. The Assessee Has Duly Filed The Copy Of The Certificate In Form 5 For Full & Final Settlement Of Tax Arrear Under Section 5(2) Read With Section 6 Of The Direct Tax Vivad Se Vishwas Act, 2020. 2 Shri Bijay Kumar Kishorepuria A.Y. 2014-15 3. Per Contra, The Ld. Dr Did Not Have Any Objection In This Regard.

For Appellant: Shri Shubham Khandelia, ARFor Respondent: Shri Sanjay Mukherjee, CIT
Section 5(2)Section 6

ACIT, Central Circle-3, Patna vs. Bijay Kumar Kishorepuria, Patna

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

ITA 163/PAT/2019[2014-15]Status: HeardITAT Patna20 Jul 2022AY 2014-15

Bench: Shri Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleita No.163 & 164/Pat/2019 Assessment Year: 2014-15 & 2015-16 Acit, Central Circle-3, Shri Bijay Kumar Patna Kishorepuria Vs. 112, Triveni Apartment, East Boring Canal Road, Patna – 800 001. Pan: Afopk 4175 M (Appellant) (Respondent) Present For: Assessee By : Shri Shubham Khandelia, Ar Revenue By : Shri Sanjay Mukherjee, Cit Date Of Hearing : 19.07.2022 Date Of Pronouncement : 20.07.2022 O R D E R Per Sonjoy Sarma, Jm: These Appeals Filed By The Revenue Are Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)-3, Patna Both Dated 22.03.2019. 2. In This Case, Shri Bijay Kumar Kishorepuria, Authorised Representative Of The Assessee Has Moved An Application Informing Us That The Appeals Have Been Settled Under The Direct Tax Vivad Se Vishwas Act, 2020. The Assessee Has Duly Filed The Copy Of The Certificate In Form 5 For Full & Final Settlement Of Tax Arrear Under Section 5(2) Read With Section 6 Of The Direct Tax Vivad Se Vishwas Act, 2020. 2 Shri Bijay Kumar Kishorepuria A.Y. 2014-15 3. Per Contra, The Ld. Dr Did Not Have Any Objection In This Regard.

For Appellant: Shri Shubham Khandelia, ARFor Respondent: Shri Sanjay Mukherjee, CIT
Section 5(2)Section 6

Blooming Jewellery Pvt Ltd, Kolkata vs. A.C.I.T., Circle-5(2), Kolkata

In the result, the appeal of the assessee is dismissed as withdrawn

ITA 1578/KOL/2019[2009-10]Status: HeardITAT Kolkata07 Jul 2022AY 2009-10
For Appellant: N o n eFor Respondent: Shri Sanjib Kumar Paul, Addl. CIT
Section 147Section 5(2)Section 6

Income Tax Officer-2(5), Kanpur vs. Shri Durga Prasad Rawat, Kanpur

In the result, the appeal of the Revenue is dismissed

ITA 129/LKW/2020[2015-16]Status: DisposedITAT Lucknow04 Jul 2022AY 2015-16

Bench: Shri A.D Jain & Shri T.S. Kapoorassessment Year 2015-16 Income Tax Officer-2(5), Shri Durga Prasad Rawat, Kanpur Vs. 117/N/49, Kakadeo, Kanpur (U.P.) Pan – Abqpr 3421B (Appellant) (Respondent)

Section 268ASection 5(2)

Ca (India) Technologies P.Ltd, Mumbai vs. ITO RG 14(1)(2), Mumbai

Appeal is dismissed as withdrawn

ITA 2046/MUM/2017[2012-13]Status: DisposedITAT Mumbai29 Jun 2022AY 2012-13

Bench: Us Submitted That The Appellant Has Opted For Settlement Under The Provisions Of Direct Tax Vivad Se Vishwas Act, 2020 (Hereinafter Referred To As ‘The Dtvsv Act’). In This Regard, The Ld. Authorised Representative For The Appellant Placed On Record Order Of Full & Final Settlement Of Tax Arrears Under Section 5(2) Read With Section 6 Of The Dtvsv Act In Form 5 [Acknowledgement No. 347467521140322]. In View Of The Aforesaid, The Ld. Authorised Representative For The Appellant Requested For The Withdrawal Of The Present Appeal. The Learned Departmental Representative Did Not Have Any Objections To The Aforesaid Request.

For Appellant: Shri Yogesh MalpaniFor Respondent: Dr. Yogesh Kamat
Section 143(3)Section 144C(13)Section 144C(5)Section 5(2)Section 6

Shri Jayesh Jayantilal Shah, Rajkot vs. The Assistant Commissioner of Income Tax, Circle-2(3), Rajkot

In the result, the appeal of the assessee is dismissed as withdrawn

ITA 347/RJT/2017[2013-14]Status: HeardITAT Rajkot20 Jun 2022AY 2013-14

Bench: Shri Mahavir Prasad & Shri Waseem Ahmedassessment Year : 2013-14 Shri Jayesh Jayantilal Shah, The Asstt. Commissioner Of (Prop. M/S. Crossword Agro Vs Income-Tax, Industries), Plot No.371, Aji Circle 2(3), Indu. Area, Near Amul Stove, 80 Rajkot Feet Road, Rajkot Pan : Afhps 6408 Q अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Withdrawal Application Revenue By : Shri B.D. Gupta, Sr. Dr सुनवाई क" तार"ख/Date Of Hearing : 15/06/2022 घोषणा क" तार"ख /Date Of Pronouncement: 20/06/2022 आदेश/O R D E R

For Appellant: Withdrawal applicationFor Respondent: Shri B.D. Gupta, Sr. DR
Section 5(2)Section 6

Kodak India Pvt Ltd., Mumbai vs. Dy CIT 14 (2)(1), Mumbai

Appeal is dismissed as 3

ITA 7842/MUM/2019[2015-16]Status: DisposedITAT Mumbai13 Jun 2022AY 2015-16
For Appellant: Shri RaunakFor Respondent: Shri Yogesh Kamat
Section 143(3)Section 144C(13)Section 5(1)Section 5(2)Section 6