Unexplained cash credits treated as assessable income if source is not satisfactorily explained, with company entry safeguards.

Sums credited in an assessee's books without a satisfactory explanation may be charged as income as cash credits; loans or borrowings recorded as credits require the person in whose name the credit stands to provide a satisfactory explanation, and closely held companies must obtain satisfactory resident explanations for entries as share application money, share capital or share premium, except where the credited person is a qualifying venture capital fund or company. Unrecorded investments or unrecorded money, bullion, jewellery or other valuable articles may similarly be deemed income where the assessee cannot give a satisfactory explanation to the Assessing Officer.

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