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)

Mahesh Kumar, Bangalore vs. CIT(It&Tp), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1303/KOL/2019[2014-15]Status: DisposedITAT Kolkata29 Nov 2019AY 2014-15

Bench: "ी जे. सुधाकर रे"डी, लेखा सद"य एवं/And "ी ऐ. ट". वक", "यायीक सद"य) [Before Shri J. Sudhakar Reddy, Am & Shri A. T. Varkey, Jm] I.Ta No.1303/Kol/2019 A.Y 2014-15 Mahesh Kumar Vs. Commissioner Of Income Tax (It&Tp), C/O Ibm India Private Limited Global Kolkata Process Services-1A, Tax Team Hr Delivery Centre ‘D1’, 4Th Floor, Manyata Business Park, Outer Ring Road, Nagawara, Karnataka-560045. (Pan:Apspk6683A) Appellant Respondent I.Ta No.1307/Kol/2019 A.Y 2014-15 Smt. Lisa Das Vs. Assistant Commissioner Of Income-Tax Bl-353, Sector-2, Salt Lake, Kolkata- (It), Circle-1(2), Kolkata. 700 091. (Pan: Amqpd7668B) Appellant Respondent I.Ta Nos.1309/Kol/2019 A.Y 2014-15 Samir Kumar Nayak Vs. Commissioner Of Income-Tax (It&Tp), Sales Tax Office Lane, Balasore, Kolkata. Odisha-756001. (Pan: Afcpn5619M) Appellant Respondent I.Ta No.1310/Kol/2019 A.Y 2014-15 Balakalyan Chowdary Marathu Vs. Commissioner Of Income-Tax (It&Tp), 2/423-C, Mangalamitra, Rajampet, Kolkata. Kadapa, Andhra Pradesh-516115 (Pan: Asrpm6979R) Appellant Respondent I.Ta No.1312/Kol/2019 A.Y 2014-15 Biswajit Swain Vs. Commissioner Of Income-Tax (It&Tp), 60/4A, Haran Banerjee Lane, Kolkata. Konnagar, Hooghly, West Bengal- 712235 (Pan: Aysps1745C) Appellant Respondent I.Ta No.1313/Kol/2019 A.Y 2014-15 Azharul Haque Vs. Assistant Commissioner Of Income- Flat 6, Building 1, Sayed Ismail Lane, Tax (It), Circle-1(1), Kolkata. Ays- 2014-15

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Dr. P. K. Srihari, CIT, DR
Section 143(3)Section 192Section 263Section 5(2)Section 6

ITO (It) 4(2)(1), Mumbai vs. Faisal Ayub Syed, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 6986/MUM/2018[2013-14]Status: DisposedITAT Mumbai25 Nov 2019AY 2013-14

Bench: Shri C.N. Prasad, Hon’Ble & Shri G. Manjunatha, Hon’Bleincome Tax Officer (I.T) – 4(2)(1) V. Faisal Ayub Syed Room No. 1728, 17Th Floor 233-B, Jolly Maker Apts., Air India Building 1-1B, Cuffe Parade, Colaba Nariman Point, Mumbai – 400 021 Mumbai – 400 005

For Appellant: Shri Kishor RajeshirkeFor Respondent: Shri Harshad Vengurlekar
Section 4Section 45Section 5(2)Section 54Section 54(1)(ii)

Shri Debanjan Das Gupta, Kolkata vs. ACIT(It), Circle-1(1), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1315/KOL/2019[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 192Section 263Section 5(2)Section 6

Shri Bodhisattava Chattopadhyay, Kolkata vs. CIT(It&Tp), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1314/KOL/2019[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 192Section 263Section 5(2)Section 6

Malay Ghosh, Midnapoire vs. ACIT(It), Circle-1(2), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1311/KOL/2019[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 192Section 263Section 5(2)Section 6

Ravi Kiran Sinha, Dhanbad vs. ACIT(It), Circle-1(2), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1308/KOL/2019[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 192Section 263Section 5(2)Section 6

Nayan Mukherjee, Kolkata vs. ACIT (It), Circle-1(2), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1306/KOL/2019[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 192Section 263Section 5(2)Section 6

Shri Himadri Mallick, Kolkata vs. CIT (It&Tp), Kolkata

In the result, all the six appeals of the assessee’s are allowed and the Stay applications are dismissed

ITA 1304/KOL/2019[2014-15]Status: DisposedITAT Kolkata15 Nov 2019AY 2014-15

Bench: Shri A. T. Varkey, Jm & Dr. A. L. Saini, Am]

Section 143(3)Section 192Section 263Section 5(2)Section 6

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

Appeal is dismissed

ITA 6479/MUM/2018[2014-15]Status: DisposedITAT Mumbai14 Oct 2019AY 2014-15

Bench: Hon’Ble Shri Saktijit Dey, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ I.T.A. No.6479/Mum/2018 (िनधा"रण वष" / Assessment Year:2014-15) Warner Bros. Distributing Inc. Dcit (Intl. Taxation)-4(3)(2) C/O. Warner Bros. Pictures (India) Pvt. Ltd. 16 Floor, Room No.1611 बनाम/ 407, 4Th Floor, Windfall, Sahar Plaza Complex Air India Building, Nariman Point Vs. Andheri Kurla Road, J.B. Nagar Mumbai-400 021. Andheri (E), Mumbai-400 059. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaacw-6559-R (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri W. Hasan-Ld. Ar ""थ"कीओरसे/Respondent By : Shree V. Sreekar-Ld. Cit-Dr सुनवाईकीतारीख/ : 23/09/2019 Date Of Hearing घोषणाकीतारीख / : 14/10/2019 Date Of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (): -

For Appellant: Shri W. Hasan-Ld. ARFor Respondent: Shree V. Sreekar-Ld. CIT-DR
Section 144C(13)Section 144C(5)Section 5Section 5(2)Section 9(1)(i)Section 9(1)(vi)

ITO (It)- 4(3)(1), Mumbai vs. Meera Pandit Venkatraman, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 5702/MUM/2018[2013-14]Status: DisposedITAT Mumbai24 Sept 2019AY 2013-14

Bench: Shri C.N. Prasad, Hon’Ble & Shri N.K. Pradhan, Hon’Bleincome Tax Officer (It) – 4(3)(1) V. Smt Meera Venkatraman R.No. 1625, 16Th Floor C/O. Jaina Thanawala Air India Building, Nariman Point Chartered Accountant Mumbai – 400 021 11, Pritam, 11Th Road, Khar (W) Mumbai – 400 052

For Appellant: Shri R.K. AgrawalFor Respondent: Smt Jothilakshmi Nayak
Section 4Section 45Section 5(2)Section 54Section 54(1)(ii)

DCIT- (It)-3 (3)(2), Mumbai vs. Venu Raman Kumar, Mumbai

In the result, the appeal of the Revenue is dismissed

ITA 2977/MUM/2018[2006-07]Status: DisposedITAT Mumbai19 Jun 2019AY 2006-07

Bench: Shri G S Pannu, Vice- & Shri Pawan Singhassessment Year : 2006-07 Dcit-(It)-3(3)(2), Venu Raman Kumar, Mumbai. Flat No.2, Hermes House –Iii, Vs. Worli Sea Face, Mumbai 400 025. Pan Abapk9122E (Appellant) Respondent)

For Appellant: Shri V SreekarFor Respondent: S/Shri Vijay Mehta, Anuj Kisnadwala &
Section 143(3)Section 148

Knight Frank (India) Pvt. Ltd., Mumbai vs. ACIT - 2(2)(1), Mumbai

ITA 2842/MUM/2017[2012-13]Status: DisposedITAT Mumbai12 Jun 2019AY 2012-13

Bench: Shri G. Manjunatha & Shri Ravish Soodm/S Knight Frank (India) Pvt. Asst. Commissioner Of Income Ltd. C/O Kalyaniwalla & Mistry Tax-2(2)(1), Llp, 2Nd Floor, Esplanade Room No. 548, 5Th Floor, Vs. House No. 29, Hazarimal Aayakar Bhavan, M.K. Marg, Somani Marg, Fort, Mumbai. Mumbai 400 001 Pan – Aaack1544J (Appellant) (Respondent)

For Appellant: Shri M.M. Golvala &For Respondent: Shri Manoj Kumar Singh, D.R
Section 143(1)Section 143(2)Section 143(3)Section 40Section 9(2)

Saireet Sen, Kolkata vs. ITO, Ward - 31(4), Kolkata

Appeal is allowed

ITA 891/KOL/2018[2011-12]Status: DisposedITAT Kolkata17 May 2019AY 2011-12

Bench: Shri S.S.Godara & Dr. A.L. Sainiassessment Year :2011-12

Section 143(1)Section 143(3)Section 264Section 5Section 5(2)

M/S. Satyam Polyplast, Jaipur vs. Assistant Commissioner of Income Tax, Circle-4, Jaipur

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

ITA 158/JPR/2019[2015-16]Status: DisposedITAT Jaipur13 May 2019AY 2015-16
For Appellant: Shri V.K. Jain (C.A.)For Respondent: Shri K.C. Meena (ACIT)
Section 195Section 195(1)Section 40

Ashwini Kumar Singh, Kolkata vs. DCIT(It), Circle-1(1), Kolkata

Appeal is allowed

ITA 595/KOL/2017[2012-13]Status: DisposedITAT Kolkata10 May 2019AY 2012-13

Bench: Hon’Ble Shri S.S. Godara, Jm ] I.T. A No. 595/Kol/2017 A.Y 2012-13 Ashwini Kumar Singh V/S. D.C.I.T (It)- 1(1), Kolkata Pan: Bcxps7564P (Appellant) (Respondent)

For Appellant: Shri Anikesh Banerjee, Advocate, ld.ARFor Respondent: Shri C.J. Singh, JCIT, ld.DR
Section 143(3)Section 15Section 5

Jas Forwarding Worldwide Pvt. Ltd., New Delhi vs. DCIT, New Delhi

The appeal of the Assessee is allowed whereas the appeal of the Revenue is dismissed

ITA 3296/DEL/2011[2007-08]Status: DisposedITAT Delhi08 May 2019AY 2007-08

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year:2007-08

For Respondent: Shri Robin Rawan, Sr. DR
Section 143(2)Section 143(3)Section 40

DCIT, New Delhi vs. M/S Jas Forwarding World Pvt. Ltd., New Delhi

The appeal of the Assessee is allowed whereas the appeal of the Revenue is dismissed

ITA 3222/DEL/2011[2007-08]Status: DisposedITAT Delhi08 May 2019AY 2007-08

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year:2007-08

For Respondent: Shri Robin Rawan, Sr. DR
Section 143(2)Section 143(3)Section 40

ACIT(It), Circle - 1(1), Kolkata vs. Shri Debashis Palchaudhuri, Kolata

In the result, the appeal of the Revenue is dismissed

ITA 2130/KOL/2017[2013-14]Status: DisposedITAT Kolkata23 Apr 2019AY 2013-14

Bench: Sh. P.M.Jagtap & Sh.S.S.Viswanethra Ravivs Shri Debashis Pal Chaudhuri, Acit(It), Circle-1(1), 193/2, Banerjee Para Road, Kolkata-700107. Paschim Putiary, Kolkata-700041. Pan-Ajtpp0087G (Appellant) (Respondent) Appellant By Sh. S.M.Das, Addl. Cit Dr Respondent By Sh. Nageshwar Rao, Adv. & Navin Jain, Ca Date Of Hearing 24.01.2019 Date Of Pronouncement 23.04.2019 Order Per S.S. Viswanethra Ravithis Appeal Filed By The Revenue Against The Order Dated 21.07.2017 Passed By Cit(A)-22, Kolkata For Ay 2013-14. 2. The Revenue Raised 10 Grounds Amongst Which The Only Ground Emanates Whether The Cit(A) Is Justified In Holding That The Salary Earned Outside India Is Not Taxable In The Hands Of The Assessee In India.

Section 2(30)Section 5(2)Section 6(1)

Deepak Kumar Todi, Kolkata vs. DDIT, International Taxation, Circle-1(1), Kolkata

Appeal is allowed

ITA 1918/KOL/2017[2011-12]Status: DisposedITAT Kolkata16 Apr 2019AY 2011-12

Bench: Sri S.S. Godara & Dr. A.L. Saini) Assessment Year: 2011-12 Deepak Kumar Todi..............…..............….……...........…………..……………….…...……..…..…….......Appellant 697, Salt Lake Block-A Kolkata – 700 069 [Pan : Acypt 5218 D] Vs. Ddit, International Taxation, Circle-1(1), Kolkata...............……......…….....….…............Respondent Appearances By: Shri Subash Agarwala, Advocate, Appeared On Behalf Of The Assessee. Shri N.B. Som, Addl. Cit D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : January 16Th, 2019 Date Of Pronouncing The Order : April 16Th, 2019 Order Per S.S. Godara, Jm :-

Section 143(1)Section 143(3)

ACIT(It), Cir-1(1), Kolkata vs. Shri Ayan Majumdar, Kolkata

In the result, the appeal of the revenue is allowed for statistical purposes

ITA 1827/KOL/2017[2014-15]Status: DisposedITAT Kolkata05 Dec 2018AY 2014-15

Bench: Hon’Ble Shri S.S.Godara, Jm & Hon’Ble Shri M.Balaganesh, Am] I.T.A No. 1827/Kol/2017 Assessment Year : 2014-15 Acit(It), Circle-1(1), Kolkata -Vs- Shri Ayan Majumdar [Pan: Afbpm 9117 Q] (Appellant) (Respondent)

For Appellant: Shri Robin Chowdhury, Addl. CITFor Respondent: Shri Navin Jain, AR
Section 143(3)Section 192(1)Section 5(2)Section 5(2)(a)