Section 69B

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 ‘unexplained incomeâ€...

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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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Undisclosed Gold – How much one can hold?

Income Tax - Contrary to the suggestion made by the policy think tank of the Government of India i.e. Niti Aayog to introduce the Gold Amnesty Scheme (‘scheme’), it has now been reported that no such scheme is under consideration by the apex body of direct taxes. The scheme proposed to exempt the levy of penalty, including interest […]...

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Section 68: Provisions related to Cash Credits /Undisclosed Income

Income Tax - Section 68 incorporates only a rule of evidence, placing the onus of proof on the assessee. There have been hardly any amendments in this section since its introduction....

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ITAT upheld Penalty u/s 271AAB(1) on Undisclosed Investment

Pawan Mundra Vs DCIT (ITAT Jaipur) - Pawan Mundra Vs DCIT (ITAT Jaipur) The issue under consideration whether AO is justified levying penalty under section 271AAB on failure to offer explanation about the source of the undisclosed investment in land? ITAT states that during course of post search proceedings, assessee admitted an income...

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No Tax on transfer of property under family settlement

Govind Kumar Khemka Vs ACIT (ITAT Delhi) - In this case, since there was a Family Settlement between the assessee and three brothers and they have acted upon Family Settlement Deed and distributed various properties among themselves and necessary rights and title are transferred in favour of each brother would show that parties have entered ...

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Section 50C provisions cannot be applied for section 69B addition

Gayatri Enterprise Vs ITO (Gujarat High Court) - Gayatri Enterprise Vs ITO (Gujarat High Court) Provisions of Section 50C of the Income Tax Act cannot be applied for the purpose of making addition under section 69B of the Act. We fail to understand why section 50C of the Act has been brought into play having regard to the facts of the present case...

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Addition u/s 69B justified in respect of unaccounted money paid in cash to sellers of land

Vinay Gupta v. ACIT (ITAT Delhi) - Addition under section 69B of unaccounted money invested in purchase of land by assessee by paying in cash to sellers of land was justified as assessee-purchaser had no evidence to controvert the same....

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Addition on account of Valuation of stock not justified if Assessee consistently follows same valuation method

M/s. Mundra & Jain Marbles Vs DCIT (ITAT Jaipur) - Addition made in the income u/s 69B on account of failure of assessee to substantiate the excess stock found at his premises was not justified  as the excess stock came on account of sale price taken by Department and since inception of assessee-firm, it was valuing inventory on average cost method...

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Recent Posts in "Section 69B"

ITAT upheld Penalty u/s 271AAB(1) on Undisclosed Investment

Pawan Mundra Vs DCIT (ITAT Jaipur)

Pawan Mundra Vs DCIT (ITAT Jaipur) The issue under consideration whether AO is justified levying penalty under section 271AAB on failure to offer explanation about the source of the undisclosed investment in land? ITAT states that during course of post search proceedings, assessee admitted an income of Rs. 6,00,000 on account of undisclos...

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No Tax on transfer of property under family settlement

Govind Kumar Khemka Vs ACIT (ITAT Delhi)

In this case, since there was a Family Settlement between the assessee and three brothers and they have acted upon Family Settlement Deed and distributed various properties among themselves and necessary rights and title are transferred in favour of each brother would show that parties have entered into genuine transaction....

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

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...

Read More

Taxation of Unexplained Incomes

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 ‘unexplained incomeâ€...

Read More
Posted Under: Income Tax |

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

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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Posted Under: Income Tax | ,

Section 50C provisions cannot be applied for section 69B addition

Gayatri Enterprise Vs ITO (Gujarat High Court)

Gayatri Enterprise Vs ITO (Gujarat High Court) Provisions of Section 50C of the Income Tax Act cannot be applied for the purpose of making addition under section 69B of the Act. We fail to understand why section 50C of the Act has been brought into play having regard to the facts of the present case. […]...

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Undisclosed Gold – How much one can hold?

Contrary to the suggestion made by the policy think tank of the Government of India i.e. Niti Aayog to introduce the Gold Amnesty Scheme (‘scheme’), it has now been reported that no such scheme is under consideration by the apex body of direct taxes. The scheme proposed to exempt the levy of penalty, including interest […]...

Read More
Posted Under: Income Tax |

Addition u/s 69B justified in respect of unaccounted money paid in cash to sellers of land

Vinay Gupta v. ACIT (ITAT Delhi)

Addition under section 69B of unaccounted money invested in purchase of land by assessee by paying in cash to sellers of land was justified as assessee-purchaser had no evidence to controvert the same....

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Addition on account of Valuation of stock not justified if Assessee consistently follows same valuation method

M/s. Mundra & Jain Marbles Vs DCIT (ITAT Jaipur)

Addition made in the income u/s 69B on account of failure of assessee to substantiate the excess stock found at his premises was not justified  as the excess stock came on account of sale price taken by Department and since inception of assessee-firm, it was valuing inventory on average cost method/weighted cost price which was verifiabl...

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Section 142A: Reference of matter to DVO by AO for valuation of property is not mandatory

ACIT Vs M/s. Ardra Associates (ITAT Cochin)

provisions of section 142A of the Act provides that the Assessing Officer may refer the matter to the DVO for the purpose of estimation of the value of the asset, property or investment and get a copy of the report from the DVO. The word ‘may’ makes it discretionary to refer the matter to the DVO. It cannot be said by any stretch of i...

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Section 69B cannot be invoked on mere assumption that there was understatement of investment

Dy. CIT Vs Riar Builders (P) Ltd. (ITAT Amritsar)

Section 69B cannot be invoked on the assumption that there was understatement of the investment, without a finding that the assessee invested more than what was recorded in the books of account....

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Section 68: Provisions related to Cash Credits /Undisclosed Income

Section 68 incorporates only a rule of evidence, placing the onus of proof on the assessee. There have been hardly any amendments in this section since its introduction....

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Posted Under: Income Tax |

Budget 2018 Rationalises provisions of section 115BBE

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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Posted Under: Income Tax |

Mere valuation report not sufficient to conclude unexplained investment by Assessee

ACIT Vs Shri Jayantilal T. Jariwala (ITAT Ahmedabad)

ACIT Vs. Shri Jayantilal T. Jariwala (ITAT Ahmedabad)- In thie Case Assessing Officer found that assessee had constructed a residential house, B-3, Mamta Flats, Surat and plot No.158/21 GIDC, Pandesara, Surat. The AO was not satisfied with the cost of construction shown...

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Addition u/s 69B merely on the basis of DVO report not sustainable

R.S. Bedi Vs ACIT (Delhi High Court)

Delhi High Court held In the case of R.S. Bedi vs. ACIT that no addition u/s 69B is maintainable on the sole basis of DVO report. In the given case, although AO found some document during the search, but the same was not the basis for addition as also noted by ITAT....

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AO can reply upon valuation of DVO only after proving understatement in price consideration as per sale deed

CIT Vs Raj Kumar Jain (Delhi High Court)

Tribunal examined two main issues in this case firstly, whether any addition is required to be made in the hands of assessee on account of unexplained investment in purchase of house property. Secondly, whether assessees have paid any amount over and above the consideration shown in the sale deed ...

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Only net profit on unaccounted sales can be taken as income if Purchase in duly accounted

CIT Vs Shri Hariram Bhambhani (Bombay High Court)

Entire sales which are unaccounted cannot be undisclosed income of the assessee, particularly as the purchase had been accounted for. It was held that only net profit which would arise on such unaccounted sales can rightly be taken as the amount which could be added to the Respondent ­Assessee's ...

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AO not authorized to make any estimate U/s. 142(2A) of Income tax Act, 1961

CIT Vs Rachna Agarwal (Delhi High Court)

In the present case, there was no basis for the AO to determine that the true value of the property was Rs. 1.25 crores, by adopting the return on capital method. The AO was under a duty first to ascertain what was according to him the true cost of the property....

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Additions for undisclosed investment could without doubting the genuineness of documents produced not justified

Commissioner of Income Tax Vs M B Patel (Gujarat High Court at Ahmedabad)

Assessee in his return submission dated 6.11.2009 had explained that the purchase of 2 JCB machines were made from Yantraman Automac Pvt.Ltd., Baroda and both these purchases were on hypothecation with Centurion Bank of Punjab. ...

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Addition U/s. 69B based on mere DVO report without any Supporting evidence is invalid

CIT Vs Sadhna Gupta (Delhi High Court)

The law seems to be well settled that unless and until there is some other evidence to indicate that extra consideration had flowed in the transaction of purchase of property, the report of the DVO cannot form the basis of any addition on the part of the revenue. In the present case there is no evidence other than the report of the DVO an...

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Entire unaccounted sales cannot be undisclosed income of assessee if Purchase is duly accounted

Shri Hariram Bhambhani Vs. ACIT (ITAT Mumbai)

We have considered submissions of ld representatives of parties and orders of authorities below. We agree that ld CIT(A) is justified to hold that the entire sales which are unaccounted cannot be the undisclosed income of the assessee. It is a fact that department has not disputed that there is unaccounted purchases. Therefore, all the pu...

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