Section 68

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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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,Section 69, Section 69A, Section 69B, Section 69C and Section 69D respectively of Income Tax...

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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 receiv...

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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.Ac...

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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 foun...

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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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Addition for sundry creditors without rejecting purchase are not sustainable

M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi) - M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi) The AO is wrong in making the impugned addition on account of sundry creditor, which are related to purchases and the same also accepted by the AO as genuine. Without rejecting the purchases, the sundry creditors cannot be treated as income of ass...

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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"

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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Addition for sundry creditors without rejecting purchase are not sustainable

M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi)

M/s. Gulf Steel & Minerals Vs ITO (ITAT Ranchi) The AO is wrong in making the impugned addition on account of sundry creditor, which are related to purchases and the same also accepted by the AO as genuine. Without rejecting the purchases, the sundry creditors cannot be treated as income of assessee  Therefore, addition made by [&he...

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To avail benefit of ‘peak credit’ theory Assessee needs to explain all transactions

CIT Vs M/S. JRD Stock Brokers Pvt. Ltd (Delhi High Court)

CIT Vs M/S. JRD Stock Brokers Pvt. Ltd (Delhi High Court) The peak credit worked out by the Assessee was on the basis that the principle of peak credit would apply, notwithstanding the failure of the Assessee to explain each of the sources of the deposits and the corresponding destination of the payment without squaring […]...

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A transaction fully supported by documentary evidences cannot be brushed aside on suspicion & surmises

Commissioner of income tax Vs M/s. Alpine investments (Calcutta High Court)

CIT Vs M/s. Alpine investments (Calcutta High Court) Section 68 Bogus Capital Gains From Penny Stocks:  It appears that the share loss and the whole transactions were supported by contract notes, bills and were carried out through recognized stockbroker of the Calcutta Stock Exchange and all the payments made to the stockbroker and all t...

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Addition for Gift justified on failure to substantiate claim of gift received

Shri. Vicky Jethani Vs ITO (ITAT Jaipur)

Shri Vicky Jethani Vs ITO (ITAT Jaipur) We note that the assessee has claimed the gift of Rs. 8,00,000/- received from Smt. Poonaj Kanjani stated to be the Aunt of the assessee and non-resident Indian based at UAE. In support of the claim, the assessee has furnished the Bank Certificate of Bank of Baroda regarding […]...

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Mere investigation wing report not sufficient to treat a transaction as Bogus

ITO Vs Kapil Mittal (ITAT Jaipur)

Finding of AO is based merely on suspicion and surmises without any tangible material to show that the assessee has introduced his own unaccounted income in the share of long term capital gain even otherwise the reliance of the statements recorded by the Investigation Wing, Kolkata wherein without giving an opportunity of cross examinatio...

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If no cash involved in share allotment than unexplained cash credit provisions not attracted

M/s. V.R.Global Energy Pvt. Ltd. Vs ITO (Madras High Court)

M/s.V.R.Global Energy Pvt. Ltd. Vs ITO (Madras High Court) When there was no cash involved in the transaction of allotment of shares, provisions of Section 68 of the said Act treating it as unexplained cash credit are not attracted. Learned counsel for the appellant assessee emphatically argued that inasmuch as the source of credit in [&h...

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