Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Websites are business income ?

I wish to know if a eneterpreneur who has business model based on owning several websites and has no brick and mortar office, can those websites treated as Income from Business?

If yes, then any IT Tribunal Rulings or HC citation stating that income earned from websites are treated as income of a person against which ITR to be filled????.

The payments for services published in stated websites comes to a Current Account which (the banking details) are mentioned in stated websites.

Please advise !


 2 Replies

Mahesh V.P. (Advocate)     05 January 2009

Sec 2(24) clearly defines Income, Even though you do not have office or do any physical activity what you earn is an Income It was held "The word ‘income’ is not limited by the words ‘profits’ and ‘gains’. Anything which can properly be described as ‘income’, is taxable under the Act unless expressly exempted - Maharajkumar Gopal Saran Narain Singh v. CIT [1935] 3 ITR 237 (PC)."


Thank you for the citation reference of IT Tribunal. I recall 4-5 years back a Mumbai businessman who owned website refused to pay Income tax on income from his website and his matter went to IT Tribunal. It was later decided that income from websites which is a virutal not brick and mortar entity is also considered under Income you recall that Order ! If I find it again I will paste it here for the benefit of others.


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