Section 69

Tax Treatment of cash credit

Income Tax - As per section 68 of the Income Tax Act, any sum found credited in the books of a taxpayer, for which he does not explain the nature and source or the explanation provided by him is not satisfactory by the Assessing Officer is termed as ‘Cash Credit‘. Other provisions to be kept in mind with […]...

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Section 68, 69, 69A, 69B and 69C of Income Tax Act, 1961

Income Tax - Comparison between section 68, section 69, section 69A, section 69B and section 69C: -So far as section 68 is concerned, the onus is wholly upon the Assessee to explain the source of the entry. But in cases falling under section 69, 69A, 69B and 69C, the words used show that before any of these sections are invoked, the condition preceden...

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Taxation of Unexplained Incomes

Income Tax - Background To begin with, the unexplained income simply means any income for which assessee do not have valid explanation about the nature and / or source or the assessing officer is not satisfied with the explanation provided by the assessee. Under the provisions of Income-tax Act, 1961 (the Act) broadly, the term ‚Äėunexplained income‚Ä...

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Theory of telescoping in determining taxability of undisclosed income

Income Tax - This article deals with the theory of telescoping as applied in the Income-tax Law, the manner of its application and as to how and under what circumstances the benefit of telescoping could be claimed / availed by an assessee. Though the said theory has general applicability across the taxability of a wide range of items, […]...

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Budget 2018 Rationalises provisions of section 115BBE

Income Tax - Sub-section (2) of said section provides that no deduction in respect of any expenditure or allowance or set-off of any loss shall be allowed to the assessee under any provision of the Act in computing his income referred to in clause (a) of sub-section (1)....

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No addition for mere registration of property in Assessees name without actual transfer of money

Adilakshmi Srungavarapu Vs ITO (ITAT Visakhapatnam) - Adilakshmi Srungavarapu Vs ITO (ITAT Visakhapatnam) Admitted facts are that the husband of the assessee in order to retain the property got the property registered in the assessee’s name and has repaid the loans borrowed by him by sale of gold jewellery and personal savings of the assessee. We als...

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CIT(A) cannot treat addition made by AO U/s. 69C as made U/s. 69B

M/s Toffee Agricultural Farms Pvt. Ltd. Vs ITO (ITAT Delhi) - M/s Toffee Agricultural Farms Pvt. Ltd. Vs ITO (ITAT Delhi) Coming to the question regarding action of the learned CIT (Appeals) to treat the reference u/s 142 for the purpose of Section 69B, I find merit into the contention of the assessee that there is no power conferred upon the learned CIT(Appea...

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No addition for unsecured loan received if Source & Nature explained

ITO Vs Sandeep S. Dagaria (ITAT Mumbai) - ITO Vs Sandeep S. Dagaria (ITAT Mumbai) ITAT notices that Assessing Officer has merely proceeded to make addition of Rs.7,00,000/- unsecured loans merely because the Rajat Group of Companies involved in the transaction of bogus purchases and rejected the evidences submitted before him i.e. assessee ...

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Scheme of tax treaties limits the rights of taxation either to residence or to source jurisdiction

ITO Vs Rajeev Suresh Ghai (ITAT Mumbai) - ITO Vs Rajeev Suresh Ghai (ITAT Mumbai) It is always useful to bear in mind the fact that, on the first principles, the trigger for taxation of an income in a source jurisdiction is either the economic activity or the linkage of an income with that jurisdiction, and that in the absence of such a [&h...

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Bogus purchases: Entire purchases cannot be taxed

United Waterproofing Corporation Vs ITO (ITAT Mumbai) - United Waterproofing Corporation Vs ITO (ITAT Mumbai) We note that Ld. CIT(A) has enhanced the addition on account of bogus purchases to 100% of the bogus purchases as against 12.5% applied by the AO. The only reason given by the Ld. CIT(A) is that the assessee has failed to prove the genuineness of...

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Recent Posts in "Section 69"

No addition for mere registration of property in Assessees name without actual transfer of money

Adilakshmi Srungavarapu Vs ITO (ITAT Visakhapatnam)

Adilakshmi Srungavarapu Vs ITO (ITAT Visakhapatnam) Admitted facts are that the husband of the assessee in order to retain the property got the property registered in the assessee‚Äôs name and has repaid the loans borrowed by him by sale of gold jewellery and personal savings of the assessee. We also find merit in the argument […]...

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CIT(A) cannot treat addition made by AO U/s. 69C as made U/s. 69B

M/s Toffee Agricultural Farms Pvt. Ltd. Vs ITO (ITAT Delhi)

M/s Toffee Agricultural Farms Pvt. Ltd. Vs ITO (ITAT Delhi) Coming to the question regarding action of the learned CIT (Appeals) to treat the reference u/s 142 for the purpose of Section 69B, I find merit into the contention of the assessee that there is no power conferred upon the learned CIT(Appeals) to assess a […]...

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No addition for unsecured loan received if Source & Nature explained

ITO Vs Sandeep S. Dagaria (ITAT Mumbai)

ITO Vs Sandeep S. Dagaria (ITAT Mumbai) ITAT notices that Assessing Officer has merely proceeded to make addition of Rs.7,00,000/- unsecured loans merely because the Rajat Group of Companies involved in the transaction of bogus purchases and rejected the evidences submitted before him i.e. assessee has submitted the confirmation balance a...

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Scheme of tax treaties limits the rights of taxation either to residence or to source jurisdiction

ITO Vs Rajeev Suresh Ghai (ITAT Mumbai)

ITO Vs Rajeev Suresh Ghai (ITAT Mumbai) It is always useful to bear in mind the fact that, on the first principles, the trigger for taxation of an income in a source jurisdiction is either the economic activity or the linkage of an income with that jurisdiction, and that in the absence of such a […]...

Read More

Bogus purchases: Entire purchases cannot be taxed

United Waterproofing Corporation Vs ITO (ITAT Mumbai)

United Waterproofing Corporation Vs ITO (ITAT Mumbai) We note that Ld. CIT(A) has enhanced the addition on account of bogus purchases to 100% of the bogus purchases as against 12.5% applied by the AO. The only reason given by the Ld. CIT(A) is that the assessee has failed to prove the genuineness of purchases and […]...

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No addition of unaccounted investment if transactions were via Banking Channels

ITO Vs Vaneet Mittal (ITAT Chandigarh)

Addition on account of investment made from undisclosed sources was deleted as as all transactions were made through banking channels and AO had made the addition in question on assumption and presumption basis....

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Section 69 not applies to transactions recorded in Books

DCIT Vs KDP Infrastructure Pvt. Ltd. (ITAT Delhi)

Once the transaction is found to be recorded in the regular books of account, provisions of section 69 do not apply and the CIT(A) had, therefore, rightly deleted the addition which calls for no interference....

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Tax Treatment of cash credit

As per section 68 of the Income Tax Act, any sum found credited in the books of a taxpayer, for which he does not explain the nature and source or the explanation provided by him is not satisfactory by the Assessing Officer is termed as ‘Cash Credit‘. Other provisions to be kept in mind with […]...

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HC upheld addition for cash payment for shares from unexplained Sources

Jaidayal Prannath Kapur Vs CIT (Madras High Court)

Jaidayal Prannath Kapur Vs CIT (Madras High Court) The assessment for the Assessment Year under consideration, AY 2002-03, was reopened and notice under Section 148 of the Act was issued. From the findings recorded by the Assessing Officer in the Assessment Order, dated 19.12.2007, we find that, initially, the assessee did not extend full...

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Section 147 or 153C Assessment РSearch from 3rd party premises РUnexplained Money addition under Section 69A

ACIT Vs. K. S. Chawla & Sons (HUF) (ITAT Delhi)

ACIT Vs. K. S. Chawla & Sons (HUF) (ITAT Delhi) > HELD THAT:- In the present assessee‚Äôs case, search & seizure action u/s 132 of the Act was carried out on 15.10.2009 in the premises of Mr. Abhinav Arora and Mrs. Ranju Arora. Consequently, the Assessing Officer initiated reassessment proceedings u/s 147 of the Act […]...

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