Unexplained expenditure deemed income when source is not satisfactorily explained; assessing officer can include it in taxable income. Where an assessee incurs expenditure and either offers no explanation for its source or the explanation is unsatisfactory to the Assessing Officer, the unreconciled portion is deemed to be the assessee's income for that tax year and is not allowable as a deduction under the Act.
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.
Provisions expressly mentioned in the judgment/order text.
Unexplained expenditure deemed income when source is not satisfactorily explained; assessing officer can include it in taxable income.
Where an assessee incurs expenditure and either offers no explanation for its source or the explanation is unsatisfactory to the Assessing Officer, the unreconciled portion is deemed to be the assessee's income for that tax year and is not allowable as a deduction under the Act.
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