Section 68

Tax on Undisclosed source of Income under Income Tax Act, 1961

Income Tax - Undisclosed income is the income which the assessee has not shown in his Income Tax Return and thereby not paid income tax on it. The primary objective of the Income tax department is to detect such undisclosed income and bring the same under the tax net. If the Assessing Officer detects cash credits, unexplained investments, […]...

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Brief Study of Section 269SS, 269T, 68 and 69 of Income Tax Act,1961

Income Tax - There are very few things in this world which are both Legal & Lethal. TAX is one of them. If tax provisions are not understood properly or tax is not paid in proper time, it is enough to give you hypertension. Moreover it is important to know what are the sections that affect your daily transactions and how these transactions are dealt w...

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Unexplained cash credits – Section 68 – Case Laws – Assessment

Income Tax - Section 68 of the I T Act is one of the most powerful yet debated provision of the I T Act. This provision has given plethora of judgments, sometimes conflicting, both in favour of Revenue and the assessee. In light of those judgements an attempt is made to analyse Section 68 with the following sub headings:...

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Accommodation entries from fake companies – Case Laws, Assessment Issues

Income Tax - When we refer to an entry of loan transaction as ‘fake loan’ received from a ‘paper company’, it invariably means that such entry represents unaccounted money of the person in whose books of account the money has been credited as loan and the lender company is only a conduit for routing the money back to the books of account of th...

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Section 115BBE and Section 68 – Taxing the unexplained!

Income Tax - This Article aims at highlighting the unsung provisions of Section 115BBE of the Income-tax Act, 1961 (Act), applicable from AY 2013-14 onwards and surfacing some practical concerns surrounding its applicability and further amendments made to this section....

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Bogus Capital gains: Order Without Cross Examination Opportunity is invalid

Anubhav Jain Vs ITO (ITAT Delhi) - Bogus Capital gains- Order is against the principle of natural justice in as much as the order has been passed taking the statement of person as base, the copy of which is not made available to the assessee. Further, opportunity to cross examine the concerned person was also not provided to the asse...

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Addition Not Possible U/S 68 Once Identity, Creditworthiness & Genuineness Of Transaction Is Proved

DCIT Vs Piramal Realty Pvt. Ltd. (ITAT Mumbai) - Transaction is duly recorded in the books of accounts, statutory returns are duly filed with regard to allotment of shares. Documentary evidence proving identity, creditworthiness and genuineness of the transaction is provided. Addition under section 68 not possible....

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Addition for capital contributed by partner in assessee firm not justified

Shri Gems Vs ITO (ITAT Delhi) - If AO was not satisfied regarding transaction relating to the cash deposited by partner whose identity was not in doubt and assessee had furnished all the relevant documents, then addition could have been made in the hands of said partner and not in the hands of the assessee....

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AO cannot assess share premium as income on the ground that it is excessive

M/s. Varsity Education Management Pvt. Ltd. Vs DCIT (ITAT Mumbai) - M/s. Varsity Education Management Pvt. Ltd. Vs DCIT (ITAT Mumbai) In the instant case, there is no dispute to the fact that the assessee has received the sum of Rs. 1030/- per share as Share Premium. It is the case of the assessing officer is that he will accept the share premium only to the extent...

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Income / Losses declared by Investor Companies not a Sole Criterion to examine Creditworthiness

Psychotropics Leasing & Finance (P) Ltd. Vs ITO (ITAT Delhi) - Psychotropics Leasing & Finance (P) Ltd. Vs ITO (ITAT Delhi) The ld. CIT(A) appears to have stressed on the fact that the impugned share holders has shown meager income in their return of income. In our opinion, the income/losses declared by the investor companies is not a sole criterion to exam...

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SOP to apply provisions of section 68 of Income tax Act, 1961

246/151/2017-A&PAC-1 - (10/01/2018) - Assessing Officers should follow the sequence as noted below for applying provisions of section 68 of the Act: Step 1: Whether there is credit of a sum during the year in the books of accounts maintained by the taxpayer. Step 2: If yes, the assessee should be asked to explain the nature and source o...

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Section 68’s Popular Posts

Recent Posts in "Section 68"

Bogus Capital gains: Order Without Cross Examination Opportunity is invalid

Anubhav Jain Vs ITO (ITAT Delhi)

Bogus Capital gains- Order is against the principle of natural justice in as much as the order has been passed taking the statement of person as base, the copy of which is not made available to the assessee. Further, opportunity to cross examine the concerned person was also not provided to the assessee....

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Addition Not Possible U/S 68 Once Identity, Creditworthiness & Genuineness Of Transaction Is Proved

DCIT Vs Piramal Realty Pvt. Ltd. (ITAT Mumbai)

Transaction is duly recorded in the books of accounts, statutory returns are duly filed with regard to allotment of shares. Documentary evidence proving identity, creditworthiness and genuineness of the transaction is provided. Addition under section 68 not possible....

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Addition for capital contributed by partner in assessee firm not justified

Shri Gems Vs ITO (ITAT Delhi)

If AO was not satisfied regarding transaction relating to the cash deposited by partner whose identity was not in doubt and assessee had furnished all the relevant documents, then addition could have been made in the hands of said partner and not in the hands of the assessee....

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AO cannot assess share premium as income on the ground that it is excessive

M/s. Varsity Education Management Pvt. Ltd. Vs DCIT (ITAT Mumbai)

M/s. Varsity Education Management Pvt. Ltd. Vs DCIT (ITAT Mumbai) In the instant case, there is no dispute to the fact that the assessee has received the sum of Rs. 1030/- per share as Share Premium. It is the case of the assessing officer is that he will accept the share premium only to the extent […]...

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Income / Losses declared by Investor Companies not a Sole Criterion to examine Creditworthiness

Psychotropics Leasing & Finance (P) Ltd. Vs ITO (ITAT Delhi)

Psychotropics Leasing & Finance (P) Ltd. Vs ITO (ITAT Delhi) The ld. CIT(A) appears to have stressed on the fact that the impugned share holders has shown meager income in their return of income. In our opinion, the income/losses declared by the investor companies is not a sole criterion to examine the creditworthiness of the [&hellip...

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Tax on Undisclosed source of Income under Income Tax Act, 1961

Undisclosed income is the income which the assessee has not shown in his Income Tax Return and thereby not paid income tax on it. The primary objective of the Income tax department is to detect such undisclosed income and bring the same under the tax net. If the Assessing Officer detects cash credits, unexplained investments, […]...

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Addition for Bogus share capital: ITAT deletes addition as discharges primary onus cast upon it

Sunshine Metals & Alloys Industries Pvt. Ltd. Vs ITO (ITAT Mumbai)

Sunshine Metals & Alloys Vs ITO (ITAT Mumbai) Section 68 Bogus share capital- Assessee has furnished the Name, Address, PAN no and Share Application Form to prove that the shares were allotted to the applicants. The assessee has also furnished its bank statement to show that the money was received through banking channels and there [&...

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Income shown as agricultural but not proved is taxable as other Income

Sri.George M George Vs ACIT (ITAT Cochin)

Income-tax Authorities have correctly held that the assessee was not in receipt of Rs. 12,36,000 as agricultural income. Having held Rs. 12,36,000 as not agricultural income, the sum that is credited to the book of account has to be necessarily added as income from other sources u/s 68 of the I.T.Act....

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Assumption of jurisdiction U/s. 153A invalid if No incriminating material found

Moon Beverages Ltd. Vs. ACIT (ITAT Delhi)

Since no assessment was pending on the date of search and addition had been made on basis of post-search enquiries and statements recorded under section 132(4) on various persons, therefore, AO had no power to assume jurisdiction under provisions of section 153A as no incriminating material was found....

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No adverse inference can be drawn on Failure to offer cross-examination of persons whose statements are relied

Rajat Exports Import (India) Pvt. Ltd Vs ITO (ITAT Delhi)

Failure by the AO to offer cross-examination of the persons whose statements are relied upon means that no adverse inference can be drawn against the assessee. ...

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Posted Under: Income Tax |

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