Unexplained investments treated as income: off books or unexplained excess investments are deemed taxable in the year. Where an assessee makes investments not recorded in books or in excess of recorded amounts and either offers no explanation or an explanation deemed unsatisfactory by the Assessing Officer, the value of such investment or excess is to be treated as the assessee's income for that tax year, placing on the assessee the obligation to explain off books investments and vesting evaluative discretion in the Assessing Officer.
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 investments treated as income: off books or unexplained excess investments are deemed taxable in the year.
Where an assessee makes investments not recorded in books or in excess of recorded amounts and either offers no explanation or an explanation deemed unsatisfactory by the Assessing Officer, the value of such investment or excess is to be treated as the assessee's income for that tax year, placing on the assessee the obligation to explain off books investments and vesting evaluative discretion in the Assessing Officer.
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