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Income From Undisclosed Sources, 2025
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Table of Contents

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Part I -- Income from Undisclosed Sources

1 >>   

Section A -- Introductory

2 >>   
1  Deemed Income under Sections 68 to 69D 2 >>   
2  Taxation of Incomes Referred to in Sections 68 to 69D 8 >>   

Section B -- Cash Credits [Section 68]

11 >>   
3  Chargeability under Section 68 11 >>   
4  Nature, Scope and Mandate of Section 68 18 >>   
5  Scope of First Proviso to Section 68 26 >>   
6  Scope of Second and Third Proviso 30 >>   
7  Maintenance of Books of Accounts -- Condition Precedent for Invoking Section 68 36 >>   
8  Approach of Assessing Officer While Invoking Section 68 44 >>   
9  Onus to Prove Regarding Cash Credit 55 >>   
10  Shifting of Burden of Proof to Revenue 79 >>   
11  Role of Assessee's Explanation Regarding Credit Entries 88 >>   
12  Examination As to Genuineness of Cash Credit 98 >>   
13  Justification of Addition under Varying Circumstances 123 >>   
14  Long Term Capital Gain on Penny Stocks Vis-a-Vis Addition under Sec. 68 149 >>   
15  Telescoping of Intangible Additions 167 >>   
16  Applicability of Peak Credit Theory 175 >>   
17  Cash Credit Vis-a-Vis Partnership Firm 182 >>   
18  Share Capital of Companies and Cash Credit 198 >>   
19  Burden to Prove Source of Share Capital Etc., in Hands of Investors in Case of Closely Held Companies 257 >>   
20  Shell Companies Vis-a-Vis Addition under Section 68 258 >>   
21  Addition under Section 68 Vis-a-Vis Donation in Hands of Charitable Trusts and Institutions 261 >>   
22  Cash Deposits under Varying Fact Situations Vis-a-Vis Addition under Section 68 265 >>   
23  Cash Credit Perspective in Estimation of Business Income 303 >>   
24  Tribunal's Finding Vis-a-Vis Cash Credit 309 >>   
25  Powers and Duties of Assessing Officer While Invoking Section 68 Provision 312 >>   

Section C -- Loans and Cash Credits

321 >>   
26  Dealing with Unsecured Loans 321 >>   
27  Burden to Prove Genuineness of Unsecured Loans 334 >>   
28  Source of Source Whether Required to be Proved 368 >>   
29  Issuance of Summons to Loan Creditors 380 >>   
30  Unsecured Loan from Family Members -- Determination of Its Genuineness 389 >>   
31  Justification of Addition on Account of Unsecured Loans 393 >>   

Section D -- Conveyancing Solutions in Cash Credits Specific Matters

405 >>   
32  Notice Vis-a-Vis Cash Credits 405 >>   
33  Specimen Replies Under Varying Circumstances 407 >>   

Section E -- Unexplained Investments [Section 69]

425 >>   
34  Addition under Section 69 425 >>   
35  Burden of Proof and Opportunity of Hearing 434 >>   
36  Justifiability or Otherwise of Addition under Section 69 445 >>   
37  Addition under Section 69 Vis-a-Vis Construction Cost 457 >>   
38  Addition under Section 69 Consequent to Search, Seizure and Survey Proceedings 465 >>   
39  Addition on Account of Unexplained Jewellery 478 >>   
40  Addition on Account of Unaccounted Sales and Bogus Purchases 485 >>   
41  Excess Stock Vis-a-Vis Addition under Section 69 498 >>   
42  Undisclosed or Unexplained Investment in Property 508 >>   
43  Unexplained Deposit in Bank Account 523 >>   
44  Unexplained Investments in Shares, Bonds, FD's, Etc. 537 >>   
45  Miscellaneous Fact Situations and Addition under Section 69 546 >>   
46  Conveyancing as to Section 69 574 >>   

Section F -- Unexplained Money, Jewellery, Etc. [Section 69A]

577 >>   
47  Addition under Section 69A 577 >>   
48  Presumption As to Ownership 584 >>   
49  Opportunity of Hearing and Burden of Proof 591 >>   
50  Addition on Account of Unexplained Jewellery 597 >>   
51  Cases of Unexplained Cash 607 >>   
52  Justifiability or Otherwise of Addition under Section 69A 628 >>   
53  Conveyancing As to Section 69A 653 >>   

Section G -- Amount of Investments, Etc., Not Fully Disclosed in Books of Accounts [Section 69B]

656 >>   
54  Addition under Section 69B 656 >>   
55  Addition under Section 69B Where Not Sustainable 666 >>   
56  Additions under Section 69B Where Sustainable 682 >>   
57  Conveyancing As to Section 69B 687 >>   

Section H -- Unexplained Expenditure and Bogus Purchases [Section 69C]

691 >>   
58  Addition on Account of Unexplained Expenditure 691 >>   
59  Addition Towards Bogus Purchases 727 >>   
60  Conveyancing As to Section 69C 777 >>   

Section I -- Amount Borrowed or Repaid on Hundi [Section 69D]

783 >>   
61  Addition of Hundi Amount under Section 69D 783 >>   
62  Conveyancing As to Section 69D 790 >>   

Section J -- Gifts and Treatment Thereof as Undisclosed Income

793 >>   
63  Section 68 Vis-a-Vis Section 56(2) 793 >>   
64  Burden to Prove As to Genuineness of Gift 796 >>   
65  Justification of Addition on Account of Non-Genuine Gift 810 >>   
66  Addition on Account of Gift Where Held Not Sustainable 821 >>   
67  Addition on Account of NRI Gift 831 >>   
68  Gift Vis-a-Vis Addition under Section 68/69/69A/69B/69C 837 >>   
69  Necessity of Opportunity of Hearing 839 >>   

Section K -- Demonetisation Vis-a-Vis Income From Undisclosed Sources

841 >>   
70  Addition in Wake of 2016 Demonetisation 841 >>   
71  Applicability of Section 68 or Section 69A in Demonetisation Cases 843 >>   
72  Post Demonetisation Cash Deposit Consequences 845 >>   
73  Addition on Account of Cash Deposit During Demonetisation -- Cases Helpful While Contesting Addition 849 >>   
74  Acceptance of Old Currency Notes Against Sales After Becoming Illegal Tender -- Related Issues 868 >>   
75  Queries and Reply Vis-a-Vis Demonetisation Cases 872 >>   
76  Deposit of High Denomination Note in Wake of Earlier Demonetisation Scenario Vis-a-Vis Income from Undisclosed Sources 879 >>   
77  Declaration under Voluntary Disclosure Schemes During Demonetisation Vis-a-Vis Addition under Section 68 884 >>   
78  Declaration under Vivad Se Vishwas Scheme, 2024 892 >>   

Part II -- Taxation Under Section 115BBE and Penal Consequences

911 >>   
79  Introduction of Taxation at Special Rate under Section 115BBE 912 >>   
80  Scheme of Taxation under Section 115BBE 914 >>   
81  No Deduction or Set Off of Loss Out of Deemed Income Referred to under Sections 68 to 69D 919 >>   
82  Unexplained Income Liable to Taxation under Section 115BBE -- Nature and Instances 924 >>   
83  Cash Sales Vis-a-Vis Applicability of Section 115BBE 934 >>   
84  Surrender of Income in Search or Survey and Applicability of Section 115BBE 938 >>   
85  Non-Applicability of Section 115BBE Where Income Classified as Business Income 950 >>   
86  Penalty when Leviable under Section 271AAC 959 >>   
87  Penalty Leviable under Section 271AAB Where Undisclosed Income Found During Search 961 >>   
88  Penalty Leviable under Section 271AAD Where False Entry Fake Invoice Etc., Found While Invoking Addition for Undisclosed Income 971 >>   

Part III -- Treatment of Cash Transactions

975 >>   

Section A -- Disallowance of Cash Payments Under Section 40A(3)

976 >>   
89  Disallowance Provision under Section 40A(3) 976 >>   
90  Scope and Applicability of Section 40A(3) 980 >>   
91  Issues Relevant to Section 40A(3) As Clarified by CBDT Via Various Circulars 997 >>   
92  Exceptional Circumstances As Per Rule 6DD 1000 >>   

Section B -- Acceptance or Repayment of Loan/Deposit/Specified Sum or Advances in Cash [Sections 269SS & 269T]

1023 >>   
93  Restriction on Acceptance and Taking of Loan, Deposits or Specified Sum [Section 269SS] 1023 >>   
94  Bar to Repayment of Loan or Deposit or Specified Advance in Cash [Section 269T] 1049 >>   
95  Escapement From Penalty under Sections 271D and 271E Owing to Reasonable Cause 1057 >>   

Section C -- Miscellaneous Issues Vis-a-Vis Cash Transactions

1075 >>   
96  Restriction on Cash Receipts under Section 269ST 1075 >>   
97  Acceptance of Payment Through Prescribed Electronic Modes [Section 269SU] 1083 >>   
98  Certain Other Disincentives for Cash Transactions 1085 >>   
99  Income Tax Act, 1961 Vis-a-Vis Income Tax Bill, 2025 1089 >>   
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