Section 68

Tax @ 82.50% even if you received amount via proper banking channels

Income Tax - Yes, in certain case even if assessee received money through proper banking channels still it may attract tax @ 82.50% if assessee could not explain its source, identity and creditworthiness etc of the lender/giver of the amount to the satisfaction of Assessing Officer...

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Tax Treatment of Cash Credit U/s. 68, 69, 69A, 69B, 69C and 69D

Income Tax - This Article discusses Tax Treatment of Cash Credit,Unexplained investments, Unexplained money, Amount of investments not fully disclosed in books of account, Unexplained expenditure and Amount borrowed or repaid on hundi in cash under section 68, 69, 69A, 69B, 69C and 69D respectively of Income Tax Act, 1961....

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No Set off of losses against deemed undisclosed income

Income Tax - In order to avoid unnecessary litigation, it is proposed to amend the provisions of the sub-section (2) of section 11 5BBE to expressly provide that no set off of any loss shall be allowable in respect of income under the sections 68 or section 69 or section 69A or section 69B or section 69C or section 69D....

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Income Tax on Shares Buy Back by Unlisted Companies

Income Tax - As we know, a company is a safer form of doing business. A company is a separate person than its shareholders/ members; it has its own personality and having power to assessed separately. The shareholders or members of the company are the real owners of the assets of the company. The company is doing business for the benefit of its stake ...

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Investment in Penny Stock- Bogus or Cash Credit U/s. 68?

Income Tax - Now-a-days Income Tax department investigates alleged trading/investment in shares and securities with collusion/connivance with any listed companies or with share broker by conducting Search/ Survey or by asking details u/s 133(6) of the Income Tax Act 1961....

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Section 68: Peak Credit Benefit to accommodation entry provider

CIT Vs D. K. Garg (Delhi High Court) -  The legal position in respect of an accommodation entry provider seeking the benefit of ‘peak credit’ appears to have been totally overlooked by the ITAT in the present case. Indeed, if the Assessee as a self-confessed accommodation entry provider wanted to avail the benefit of the ...

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Onus of ensuring presence of deponent cannot be shifted to assessee

Principal Commissioner of Income Tax Vs Best Infrastructure (India) Pvt. Ltd. (Delhi High Court) - S. 68: Statements recorded u/s 132 (4) do not by themselves constitute incriminating material. A copy of the statement together with the opportunity to cross-examine the deponent has to provided to the assessee. If the statement is retracted and/or if cross-examination is not provided, the statement...

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Addition u/s. 68 justified for Capital introduced by partner in assessee firm from sale of agricultural land with No documentary evidence to substantiate sale

R.A. Himmatsinghka & Co. Vs. Asst. CIT (Patna High Court) - AO cannot look into source of source, i.e., of third party only, however assessee’s case was different as the party was closely connected with the assessee. Firm as a partner thereof assessee clearly failed to produce the sale deeds of the sale of agricultural land by partner therefore was justifi...

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Bogus share capital: If document shows genuineness of transaction it cannot be treated as bogus for non appearance of shareholder

CIT Vs M/s. Orchid Industries Pvt. Ltd. (Bombay High Court) - The balance sheet and profit and loss account of these persons discloses that these persons had sufficient funds in their accounts for investing in the shares of the Assessee. In view of these voluminous documentary evidence, only because those persons had not appeared before the Assessing Officer w...

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Bogus share capital: Discharge of Onus & Law on not giving cross-examination

Arceli Realty Limited Vs ITO (ITAT Mumbai) - if relevant details of address or PAN Identity are furnished to the Department along with the copies of shareholder register, share application form, share transfer register etc, it would constitute acceptable proof or acceptable explanation by assessee....

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Section 68’s Popular Posts

Recent Posts in "Section 68"

Section 68: Peak Credit Benefit to accommodation entry provider

CIT Vs D. K. Garg (Delhi High Court)

 The legal position in respect of an accommodation entry provider seeking the benefit of ‘peak credit’ appears to have been totally overlooked by the ITAT in the present case. Indeed, if the Assessee as a self-confessed accommodation entry provider wanted to avail the benefit of the ‘peak credit’, he had to make a...

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Onus of ensuring presence of deponent cannot be shifted to assessee

Principal Commissioner of Income Tax Vs Best Infrastructure (India) Pvt. Ltd. (Delhi High Court)

S. 68: Statements recorded u/s 132 (4) do not by themselves constitute incriminating material. A copy of the statement together with the opportunity to cross-examine the deponent has to provided to the assessee. If the statement is retracted and/or if cross-examination is not provided, the statement has to be discarded. The onus of ensuri...

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Addition u/s. 68 justified for Capital introduced by partner in assessee firm from sale of agricultural land with No documentary evidence to substantiate sale

R.A. Himmatsinghka & Co. Vs. Asst. CIT (Patna High Court)

AO cannot look into source of source, i.e., of third party only, however assessee’s case was different as the party was closely connected with the assessee. Firm as a partner thereof assessee clearly failed to produce the sale deeds of the sale of agricultural land by partner therefore was justified in making addition under section 68....

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Bogus share capital: If document shows genuineness of transaction it cannot be treated as bogus for non appearance of shareholder

CIT Vs M/s. Orchid Industries Pvt. Ltd. (Bombay High Court)

The balance sheet and profit and loss account of these persons discloses that these persons had sufficient funds in their accounts for investing in the shares of the Assessee. In view of these voluminous documentary evidence, only because those persons had not appeared before the Assessing Officer would not negate the case of the Assessee...

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Bogus share capital: Discharge of Onus & Law on not giving cross-examination

Arceli Realty Limited Vs ITO (ITAT Mumbai)

if relevant details of address or PAN Identity are furnished to the Department along with the copies of shareholder register, share application form, share transfer register etc, it would constitute acceptable proof or acceptable explanation by assessee....

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Bogus share capital: AO cannot ignore document submitted by assessee

Prabhatam Investment Pvt. Ltd. Vs ACIT (ITAT Delhi)

In the present case, the assessee has been able to prove identity of the investors, their creditworthiness and genuineness of the transaction in the matter. Therefore, the authorities below should not have made or confirmed the addition of Rs. 5.75 crores in the hands of the assessee. ...

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Mere furnishing Shareholders ID not sufficient to discharge onus u/s 68

M/s. B.R. Petrochem Pvt. Ltd. Vs The Income Tax Officer (Madras High Court)

In B.R Petrochem Pvt Ltd Vs. ITO, the division bench of the Madras High Court held that mere furnishing of identity of shareholders by the asseessee would not sufficient to discharge their onus under section 68 of the Income Tax Act. While confirming the addition made against the assessee, the bench ruled that the assessee must prove the ...

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Loan received out of Bogus Share Capital of lender- Unexplained Income?

Anil Chhaganlal Jain Vs ACIT-18(1) (ITAT Mumbai)

If appellant explained source of loans received by it and duly discharges the onus cast on him under section 68 of Income Tax Act 1961 than despite the fact that lender may have raised bogus share capital to advance funds to appellant does not mean that loan received by appellant can be treated as unexplained income under section 68 of I...

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Bogus share capital: Source of source relevant even for period before amendment to section 68

Pragati Financial Management Pvt. Ltd Vs CIT (Calcutta High Court)

Main thrust of the appellant’s case is that the provisions of Section 68 of the Act as amended could not be given retrospective operation and if that position of law was accepted, then it was not open to the C.I.T. to direct an enquiry to ascertain the source and genuineness of the sums being projected by the appellants as capital recei...

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Sec. 68 AO cannot Examine Source of Source in Non-Share Capital Cases

ACIT, Vs Smt. Prem Anand (ITAT Delhi)

Ld. CIT(A) has rightly observed that the assessee is not required to explain source of source of the fund gets buttressed by the amendment made in section 68 with effect from 01.04.2013, which empowers the AO to examine source of source in case of share application money from 01.04.2013 and no other cases prior to that....

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