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)

The Dy CIT (It)-Circle-3(3)(2), Mumbai vs. Manish Vijay Mehta, Mumbai

In the result, appeals of the learned Assessing Officer and CO of the assessee for both the years are dismissed

ITA 493/MUM/2021[2007-08]Status: DisposedITAT Mumbai31 Oct 2022AY 2007-08

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Ajay Singh, ARFor Respondent: Shri Soumendu Kumar Dash, DR
Section 148

The Dy CIT (It)-Circle-3(3)(2), Mumbai vs. Urvi Manish Mehra, Mumbai

In the result, appeals of the learned Assessing Officer and CO of the assessee for both the years are dismissed

ITA 492/MUM/2021[2007-08]Status: DisposedITAT Mumbai31 Oct 2022AY 2007-08

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Ajay Singh, ARFor Respondent: Shri Soumendu Kumar Dash, DR
Section 148

The Dy CIT (It)-Circle-3(3)(2), Mumbai vs. Urvi Manish Mehta, Mumbai

In the result, appeals of the learned Assessing Officer and CO of the assessee for both the years are dismissed

ITA 491/MUM/2021[2006-07]Status: DisposedITAT Mumbai31 Oct 2022AY 2006-07

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Ajay Singh, ARFor Respondent: Shri Soumendu Kumar Dash, DR
Section 148

Assistant Commissioner of Income Tax Central Circle - 1(4), Bengaluru vs. M/S Snowshine Realtors Pvt.Ltd., Bengaluru

In the result, the revenue appeals in ITA Nos

ITA 1443/BANG/2018[2008-09]Status: DisposedITAT Bangalore28 Oct 2022AY 2008-09

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariita Nos.1441 & 1442/Bang/2018 Assessment Year: 2009-10 & 2012-13 Acit Central Circle- M/S. Kansur Developers India Pvt. Ltd. 1(4) No.2650, Ground Floor Bengaluru Vs. 37Th B Cross, 28Th Main, 9Th Block Jayanagar Bangalore 560 009 Pan No : Aacck9866F Appellant Respondent C.O. Nos.103&104/Bang/2018 (Arising Out Of Ita Nos.1441 & 1442/Bang/2018) Assessment Years: 2009-10 & 2012-13

For Appellant: Shri Dilip, Junior Standing Counsel forFor Respondent: Dept
Section 147

Assistant Commissioner of Income Tax Central Circle - 1(4), Bengaluru vs. M/S Kansur Developers India Pvt. Ltd., Bengaluru

In the result, the revenue appeals in ITA Nos

ITA 1442/BANG/2018[2012-13]Status: DisposedITAT Bangalore28 Oct 2022AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariita Nos.1441 & 1442/Bang/2018 Assessment Year: 2009-10 & 2012-13 Acit Central Circle- M/S. Kansur Developers India Pvt. Ltd. 1(4) No.2650, Ground Floor Bengaluru Vs. 37Th B Cross, 28Th Main, 9Th Block Jayanagar Bangalore 560 009 Pan No : Aacck9866F Appellant Respondent C.O. Nos.103&104/Bang/2018 (Arising Out Of Ita Nos.1441 & 1442/Bang/2018) Assessment Years: 2009-10 & 2012-13

For Appellant: Shri Dilip, Junior Standing Counsel forFor Respondent: Dept
Section 147

Assistant Commissioner of Income Tax Central Circle-1-(4), Bengaluru vs. M/S Kansur Developers India Pvt. Ltd., Bengaluru

In the result, the revenue appeals in ITA Nos

ITA 1441/BANG/2018[2009-10]Status: DisposedITAT Bangalore28 Oct 2022AY 2009-10

Bench: Shri N.V. Vasudevan & Shri Chandra Poojariita Nos.1441 & 1442/Bang/2018 Assessment Year: 2009-10 & 2012-13 Acit Central Circle- M/S. Kansur Developers India Pvt. Ltd. 1(4) No.2650, Ground Floor Bengaluru Vs. 37Th B Cross, 28Th Main, 9Th Block Jayanagar Bangalore 560 009 Pan No : Aacck9866F Appellant Respondent C.O. Nos.103&104/Bang/2018 (Arising Out Of Ita Nos.1441 & 1442/Bang/2018) Assessment Years: 2009-10 & 2012-13

For Appellant: Shri Dilip, Junior Standing Counsel forFor Respondent: Dept
Section 147

The JCIT (OSD)(It)-Circle 3(3)(2), Mumbai vs. Shri Rahul Rajnikant Parikh, Mumbai

In the result, all the appeals filed by the revenue are dismissed

ITA 640/MUM/2022[2008-09]Status: DisposedITAT Mumbai20 Oct 2022AY 2008-09
Section 5(2)

The Jt.Comm of Income Tax (OSD)(It) -Circle-3(3) (2), Mumbai vs. Shri Rahul Rajnikant Parikh, Mumbai

In the result, all the appeals filed by the revenue are dismissed

ITA 639/MUM/2022[2007-08]Status: DisposedITAT Mumbai20 Oct 2022AY 2007-08
Section 5(2)

The Jt Comm. of Income Tax (OSD) (It) X (OSD) (It), Mumbai vs. Shri Rahul Rajnikant Parikh, Mumbai

In the result, all the appeals filed by the revenue are dismissed

ITA 638/MUM/2022[2006-07]Status: DisposedITAT Mumbai20 Oct 2022AY 2006-07
Section 5(2)

The Jt. CIT (OSD) (It) -Circle 3(3) (2), Mumbai vs. Shri Kalpesh R. Jhaveri, Mumvbai

In the result, all the appeals filed by the revenue are dismissed

ITA 637/MUM/2022[2006-07]Status: DisposedITAT Mumbai20 Oct 2022AY 2006-07
Section 5(2)

The Jt Comm of Income Tax (OSD) (It) -Cir 3(3) (2), Mumbai vs. Shri Kalpesh R. Jhaveri, Mumbai

In the result, all the appeals filed by the revenue are dismissed

ITA 636/MUM/2022[2008-09]Status: DisposedITAT Mumbai20 Oct 2022AY 2008-09
Section 5(2)

I.T.O., Ward-5(4), Kolkata vs. M/S Valley Towers Pvt. Ltd., Kolkata

In the result, appeal of the revenue is dismissed

ITA 283/KOL/2020[2008-09]Status: DisposedITAT Kolkata23 Sept 2022AY 2008-09

Bench: Shri Rajpal Yadav, Hon’Ble & Shri Rajesh Kumar, Hon’Blei.T.A. No. 283/Kol/2020 Assessment Year: 2008-09 Income Tax Officer, Ward-5(4), M/S. Valley Towers Pvt. Ltd. Kolkata Vs 9/12, Lal Bazar Street Kolkata - 700001 [Pan: Aaccv6646C] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent)

For Appellant: Shri Ritesh Goel, AdvocateFor Respondent: Shri Amitava Bhattacharya, CIT, D/R
Section 254(2)Section 5(2)Section 6

Spe India Films Holding Llc, Mumbai vs. ACIT (Intl Tax) -4(2) (2), Mumbai

In the result ground no-2 raised by the assessee- is fully allowed

ITA 457/MUM/2022[2018-19]Status: DisposedITAT Mumbai21 Sept 2022AY 2018-19

Bench: Shri Amit Shukla & Shri Gagan Goyalspe India Films Holding Llc C/O, Deloitte Haskins & Sells Llp One International Centre, Tower No.3, 27Th Floor-32Nd Floor, Senapati Bapat Marg, Elphinstone Road (W), Mumbai-400013. Pan: Aaocs1827L ...... Appellant Vs. Acit (International Taxation)-4(2)(2) 16Th Floor, Air India Building, Narimaon Point, Mumbai-400021. ..... Respondent Appellant By : Sh. P.J. Pardiwala/Paras Savla Respondent By : Sh. A.K. Keshari Date Of Hearing : 27/06/2022 Date Of Pronouncement : 21/09/2022 Order Per Gagan Goyal, A.M: This Appeal By The Assessee Is Directed Against The Order Of Dispute Resolution Panel-2, Mumbai [Hereinafter Referred To As [‘Drp’] Dated 06.01.2022 For The Assessment Year (Ay) 2018-19. The Assessee Has Raised The Following Grounds Of Appeal: “The Appellant, Objects To The Order Dated 19 January 2022 Passed Under Section 143(3) R.W.S 144C(13) Of The Income Tax Act, 1961 (Act) Passed By The Learned Assistant Commissioner Of Income-Tax (International Taxation) - 4(2)(2), Mumbai

For Appellant: Sh. P.j. Pardiwala/Paras SavlaFor Respondent: Sh. A.K. Keshari
Section 143(3)Section 234BSection 234CSection 270ASection 9(1)(vi)

Shri Neeraj Mishra, Bareilly vs. Income Tax Officer, Bareilly

In the result, the appeal of the assessee stands dismissed

ITA 394/LKW/2017[2010-11]Status: DisposedITAT Lucknow15 Sept 2022AY 2010-11

Bench: Shri T. S. Kapoorassessment Year:2010-11

Section 5(2)Section 6

Hariram Rajesh Kumar (HUF), Kolkata vs. D.C.I.T., CC-2(4), Kolkata

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

ITA 444/KOL/2019[2014-15]Status: DisposedITAT Kolkata08 Sept 2022AY 2014-15

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rajesh Kumar

Section 5(2)Section 6

Hariram Sunil Kumar (HUF), Kolkata vs. D.C.I.T., CC-2(4), Kolkata

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

ITA 443/KOL/2019[2014-15]Status: DisposedITAT Kolkata08 Sept 2022AY 2014-15

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rajesh Kumar

Section 5(2)Section 6

Kanagaraj Shanmugam, Salem vs. ITO (International Taxation) Ward 1(2), Chennai

The appeal stands partly allowed in terms of our above order

ITA 2936/CHNY/2018[2015-16]Status: DisposedITAT Chennai07 Sept 2022AY 2015-16
For Appellant: Ms. M.Abhinaya and Shri V.Balaji (CA)-Ld. ARsFor Respondent: Shri ARV Sreenivasan (Addl. CIT)-Ld. DR
Section 143(3)Section 15Section 234DSection 244ASection 274Section 5(2)Section 9

Bharatbhai Kalyanbhai Patel, Mehsana vs. The Income Tax Officer, Ward-5, Mehsana

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

ITA 232/AHD/2020[2005-06]Status: DisposedITAT Ahmedabad06 Sept 2022AY 2005-06

Bench: Shri P.M. Jagtap, Vice- & Ms. Madhumita Royassessment Years : 2005-06 Bharatbhai Kalyanbhai Patel, The Income Tax Officer, C/O. Bharat Engg. & Moulding Vs Ward-5, Works, Survey No. 643, Nr. Hynoup Mehsana Oil Industries, Post: Kadi, Dist. Mehsana, Gujarat Pan: Abupp 4415 D अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Withdrawal Application On Record Revenue By : Shri V.K. Mangla, Sr. Dr सुनवाई क" तार"ख/Date Of Hearing : 06/09/2022 घोषणा क" तार"ख /Date Of Pronouncement: 06/09/2022 आदेश/O R D E R Per P.M. Jagtap, Vice-: The Assessee Is In Appeal Before The Tribunal Against The Order Of The Learned Commissioner Of Income-Tax (Appeals), Gandhinagar Dated 29.01.2020 Passed For Assessment Year 2005-06. 2. At The Time Of Hearing Fixed In This Case Today, I.E. On 06.09.2022, None Appeared On Behalf The Assessee. However, Vide An Application Dated 14.04.2022, The Assessee Has Requested For Withdrawal Of His Appeal On The Ground That He Had Already Availed Benefits Of “Vivad Se Vishwas Scheme 2020”. The Assessee Has Also Submitted That He Has Already Received Form No.5, Being The Order For Full & Final Settlement Of Tax Arrears Under The Said Scheme, Issued By The Principal Commissioner Of Income Tax, Ahmedabad-3 In This Regard, Which Is Placed On Record. In View Of The Above, The Learned Departmental Representative Submitted That He Has No Objection To The Withdrawal Of The Appeal. Bharatbhai Kalyanbhai Patel Vs. Ito Ay : 2005-06 2

For Appellant: Withdrawal application on recordFor Respondent: Shri V.K. Mangla, Sr. DR
Section 5(2)Section 6

Helapuri Cable Vision Private Limited, Eluru vs. The Income Tax Officer, Ward-1, Eluru

In the result, assessee’s appeal is dismissed as withdrawn

ITA 109/VIZ/2020[2010-11]Status: DisposedITAT Visakhapatnam30 Aug 2022AY 2010-11

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.109/Viz/2020 (ननधधारण वर्ा / Assessment Year : 2010-11) M/S Helapuri Cable Vision Pvt Ltd. Vs. Income Tax Officer 25-4-140, Near Dccb Bank Ward-1 N.R.Pet, Eluru Eluru [Pan : Aabch3231J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: NoneFor Respondent: Shri ON Hari Prasad Rao, DR
Section 5Section 5(2)

Income Tax Officer - 3(1), Kanpur vs. Shri Akshay Kumar Agarwal, Kanpur

In the result, the appeal of the Revenue is dismissed

ITA 65/LKW/2019[2014-15]Status: DisposedITAT Lucknow29 Aug 2022AY 2014-15

Bench: Shri A.D Jain & Shri T.S. Kapoorassessment Year 2014-15 Income Tax Officer-3(1), Shri Akshay Kumar Agarwal, Kanpur Vs. 7/154, Banglow No.283, Swaroop Nagar, Kanpur Pan- Aphpa 8177L (Revenue) (Assessee)

Section 5Section 5(2)Section 6