Taxation of Unexplained Expenditures in Clause 105 of Income Tax Bill, 2025 Vs. Section 69C of Income Tax Act, 1961

Unexplained expenditure treated as income increases tax exposure when taxpayers fail to satisfactorily explain expenditure sources.

Clause 105 deems unexplained expenditure as income when an assessee fails to provide a satisfactory explanation, confers evaluative power on the Assessing Officer to judge adequacy of explanations, and disallows any deduction for amounts so deemed; Section 69C operates similarly but uses permissive language and contains a deduction proviso, reflecting comparable objectives to prevent tax evasion while differing in textual strictness and potential administrative effect.