Cash credits: unexplained book credits may be taxed as income unless a satisfactory source explanation is furnished. Section 68 empowers the Assessing Officer to charge to tax any sum credited in an assessee's books as income if the assessee offers no explanation or an ... Summary
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Cash credits: unexplained book credits may be taxed as income unless a satisfactory source explanation is furnished.
Section 68 empowers the Assessing Officer to charge to tax any sum credited in an assessee's books as income if the assessee offers no explanation or an explanation that is unsatisfactory. Where the credited sum is a loan or similar amount, the explanation is deemed unsatisfactory unless the person in whose name the credit stands also provides a satisfactory explanation. For non-public companies, the same rule applies to share application money, share capital and share premium. The provisos exclude cases where the credited person is a designated venture capital fund or company.
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