Upgrad LLM

websites are business income ?

Medical Value Travel

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 !

 
Reply   
 
Advocate

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)."

 
Reply   
 


Medical Value Travel

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 head...do you recall that Order ! If I find it again I will paste it here for the benefit of others.

Rgds.,

 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

  Search Forum








×

Menu

CrPC MASTERCLASS!     |    x