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“undisclosed income”

Search & SeizureSection 153ASection 153A9,092 judgments

The decision most relied on for undisclosed income is CIT v. Kabul Chawla (380 ITR 573), cited in 3,235 judgments on BharatTax.

Leading authorities on undisclosed income

CIT v. Kabul Chawla
380 ITR 573 · 2016 · High Court
3,235
citing judgments

In a search assessment under Section 153A, additions can only be made for completed or non-abated assessment years if incriminating material relevant to those years is found during the search, although notice under Section 153A(1) is mandatorily issued for six assessment years preceding the search.

CIT v. Simit P. Sheth
356 ITR 451 · 2013 · High Court
1,465
citing judgments

Additions for alleged bogus purchases should be restricted to the profit element, not the entire turnover. The profit element is often estimated at 12.5% of the purported bogus purchases.

Commissioner of Income Tax v. Harjeev Aggarwal
290 CTR 263 · 2016 · High Court
583
citing judgments

Assessment based solely on a statement recorded under Section 132(4) of the Income Tax Act requires the statement to be relatable to incriminating material or evidence found during the search, especially when considering Section 158BB(1) which restricts computation of undisclosed income to evidence found during search.

CIT v. Anil Kumar Bhatia
352 ITR 493 · 2013 · High Court
537
citing judgments

Section 153A can be invoked to reassess income for all years under consideration prior to a search, even if returns for those years were processed under Section 143(1)(a). The Assessing Officer has the power to reassess total income in such cases without fetters.

CIT v. P. Mohanakala
291 ITR 278 · 2007 · Supreme Court
525
citing judgments

The Supreme Court emphasized that in the absence of concrete rebuttal by the assessee, circumstantial evidence holds significant weight, applying the doctrine of preponderance of probability, particularly when assessing undisclosed income or unexplained cash credits.

Society v. UOI
394 ITR 220 · 2017 · Supreme Court
493
citing judgments

Uncorroborated loose papers or documents found during a search operation have no evidentiary value and cannot be the sole basis for determining undisclosed income. Additions based on such material require independent evidence to establish trustworthiness and a direct link to the assessee.

CIT v. President Industries
258 ITR 654 · 2002 · High Court
471
citing judgments

When books of account are rejected and unaccounted sales or receipts are discovered, the income addition is restricted to the net profit element embedded in these undisclosed transactions, not the entire sale proceeds or receipts, especially if corresponding purchases are not proven to be outside the books.

CIT v. Gurinder Singh Bawa
386 ITR 483 · 2016 · High Court
416
citing judgments

If no incriminating material is found during a search operation regarding a particular issue, then no addition can be made concerning that issue in an assessment under section 153A of the Income-tax Act.

Judgments citing undisclosed income

Ritu Agarwala, Shillong vs. ACIT, Central Circle-2, Guwahati

In the result, In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 67/GTY/2024[2018-19]Status: DisposedITAT Guwahati07 Jul 2025AY 2018-19

Bench: Shri Manomohan Das & Shri Rakesh Mishra

Section 115Section 127Section 133ASection 143(2)Section 143(3)Section 250Section 69

Details of purchase of stock during the year along with sources. 6. Ledger extracts from the Books of account highlighting the entries pertaining to undisclosed income. I.T.A. No.: 67/GTY/2024 Assessment Year: 2018-19 Ritu Agarwala. 7. Gross Profit ratio analysis for the year under consideration with the earlier 3 Financial ... thereafter work out the stock of the assessee as per the books of account on the date of the survey and recompute the undisclosed income of the assessee. In case, the same is at par with the income from other sources shown in the return of income

Vinodchandra Madhabhai Lavri, Surat vs. ITO, Ward 2(3)(4), Surat

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 151/SRT/2025[2013-14]Status: HeardITAT Surat07 Jul 2025AY 2013-14

Bench: Shri T.R. Senthil Kumar & Shri Bijayananda Pruseth

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Ashish Pophare, CIT DR
Section 132Section 143(1)Section 143(2)Section 147Section 148Section 292C

parte basis alleging on- money receipts in cash on sale of agricultural land by treating the same as undisclosed income of the appellant on the basis of a seized documents found from a third party – - By first of all, relying on the seized documents, which is neither containing the signature ... NFAC on an ex-parte basis alleging on-money receipts in cash on sale of agricultural land, by treating the same as undisclosed income of the appellant, which needs to be deleted as being absolutely erroneous, illegal and bad-in-law. 5. Without prejudice to the aforesaid ground of appeal

Vinodchandra Madhabhai Lavri, Surat vs. ITO, Ward 2(3)(4), Surat

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 150/SRT/2025[2012-13]Status: HeardITAT Surat07 Jul 2025AY 2012-13

Bench: Shri T.R. Senthil Kumar & Shri Bijayananda Pruseth

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Ashish Pophare, CIT DR
Section 132Section 143(1)Section 143(2)Section 147Section 148Section 292C

parte basis alleging on- money receipts in cash on sale of agricultural land by treating the same as undisclosed income of the appellant on the basis of a seized documents found from a third party – - By first of all, relying on the seized documents, which is neither containing the signature ... NFAC on an ex-parte basis alleging on-money receipts in cash on sale of agricultural land, by treating the same as undisclosed income of the appellant, which needs to be deleted as being absolutely erroneous, illegal and bad-in-law. 5. Without prejudice to the aforesaid ground of appeal

Vinodchandra Madhabhai Lavri, Surat vs. ITO, Ward 2(3)(4), Surat

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 149/SRT/2025[2011-12]Status: HeardITAT Surat07 Jul 2025AY 2011-12

Bench: Shri T.R. Senthil Kumar & Shri Bijayananda Pruseth

For Appellant: Shri Rasesh Shah, C.AFor Respondent: Shri Ashish Pophare, CIT DR
Section 132Section 143(1)Section 143(2)Section 147Section 148Section 292C

parte basis alleging on- money receipts in cash on sale of agricultural land by treating the same as undisclosed income of the appellant on the basis of a seized documents found from a third party – - By first of all, relying on the seized documents, which is neither containing the signature ... NFAC on an ex-parte basis alleging on-money receipts in cash on sale of agricultural land, by treating the same as undisclosed income of the appellant, which needs to be deleted as being absolutely erroneous, illegal and bad-in-law. 5. Without prejudice to the aforesaid ground of appeal

Joint Commissioner of Income Tax (OSD), Central Circle-4, Jaipur vs. Ashok Parwal, Jaipur

In the result, the appeal of the revenue is dismissed

ITA 53/JPR/2025[2015-16]Status: DisposedITAT Jaipur07 Jul 2025AY 2015-16

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI, आयकर अपील सं./ITA No. 53/JP/2025 निर्धारण वर्ष / Assessment Year : 2015-16 Joint Commissioner of Income Tax (OSD), Circle-04, Jaipur बनाम Vs. Ashok Parwal M-57, Mahesh Colony, Tonk Phatak, Jaipur स्थायी लेखा सं. / जीआईआर सं./PAN/GIR No.: ACJPO7256L अपीलार्थी / Appellant प्रत्यर्थी / Respondent निधारिती की ओर से / Assessee by: Sh. Vedant Agarwal, Adv. राजस्व की ओर से / Revenue by : Sh. Ajey Malik, CIT (th. V.C.) सुनवाई क

For Appellant: Sh. Vedant Agarwal, AdvFor Respondent: Sh. Ajey Malik, CIT (th. V.C.)
Section 143(2)Section 147Section 148Section 153C

recorded in the said data and it was established that the appellant was associated with the above group and had paid cash loans from undisclosed income and received interest income on these loans. 4.2.2 The information in respect of the appellant was forwarded by DCIT, Central Circle-3, Jaipur ... matter is that under Section 1534 and 1530, the total income is to be assessed. The total income includes retumed income (if any), undisclosed income unearthed during the search or requisitioning and information possessed from the other sources. For Illustration: An assessee had retumed income of Rs. 100, undisclosed income

Dipika De, Kolkata vs. ITO, Ward 24(1), Kolkata

In the result, appeal filed by the assessee is partly allowed

ITA 906/KOL/2025[2014-2015]Status: DisposedITAT Kolkata07 Jul 2025AY 2014-2015

Bench: The Ld.Ao.

Section 250Section 271(1)(c)Section 274Section 69

Sons case (supra), the facts were that for Assessment year 2006-07 and 2007-08 after search and seizure operations, the assessee declared certain undisclosed income which was added to the income disclosed in the returns filed in response to the notice issued u/s 153A of the Act. The assessment

Soundra Rajan Aruna Divya, Tirunelveli vs. DCIT, Circle-1, Tirunelveli

In the result, the appeal filed by the assessee is allowed

ITA 3215/CHNY/2024[2018-19]Status: DisposedITAT Chennai07 Jul 2025AY 2018-19

Bench: Shri George George K

For Appellant: Shri P.M. Kathir, AdvocateFor Respondent: Shri Ashwin Gowda, JCIT
Section 115Section 127Section 131Section 133ASection 133A(6)Section 143(3)Section 250Section 69Section 69A

instructing the income tax officers - "that they have to focus on gathering evidences during the Search/Survey and to strictly avoid obtaining demission of undisclosed income under coercion/undue influence from the :- 6 -: Assessee". The relevant portion of the Survey Manual 2019 (Page 18 of Survey Manual 2019) is as follows

Mudubhagilu Krishna Murthy Divakar, Shivamogga vs. Income Tax Assessing Officer, Shimoga

In the result, appeal filed by the assessee is dismissed

ITA 732/BANG/2025[2018-19]Status: DisposedITAT Bangalore07 Jul 2025AY 2018-19

Bench: Shri. Laxmi Prasad Sahu & Shri. Prakash Chand Yadavassessment Year : 2018-19

For Appellant: Shri. Monish, AdvocateFor Respondent: Shri. Ganesh R. Ghale, Advocate, Standing Counsel for Revenue
Section 144Section 234ASection 250

same difference was added to the income of the assessee as income from other sources treating the same as his undisclosed income earned during the year under consideration and not offered to tax. Accordingly, assessee was issued show cause notice on 22.03.2021 with a copy of the Draft Assessment Order

Avinash S Sadamate, ACIT, Circle 3 3 1 Mumbai, Mumbai vs. Rashmi Infrastructure Developers Limited, Mumbai

In the result, both the Revenue's appeal and Cross

ITA 6605/MUM/2024[2013-14]Status: DisposedITAT Mumbai07 Jul 2025AY 2013-14

Bench: Shri Pawan Singh & Shri Prabhash Shankar

For Appellant: Shri Madhur Agrawal / Jay Bhansali, ARsFor Respondent: Shri Uma Shankar Prasad, (CIT DR)
Section 133ASection 139(1)Section 143(3)Section 801B(10)Section 801B(10)(c)

High Court of Bombay in the case of CIT Vs. Sheth Developers (P) Ltd (25 taxmann.com 173), wherein it is held that builders receiving undisclosed income in course of its business, is entitled to benefit of deduction under section 80-IB of the Act. The appellant has also relied upon ... builder receiving आयकर अपीलीय अधिकार COME TAX APPELLATE TRIBUNAL Page | 18 ITA No. 6605/Mum/2024 CO No.15/Mum/2025 Α.Υ. 2013-14 Rashmi Infrastructure Developers Limited undisclosed income in course of its business, is entitled to benefit of deduction under section 80-IB of the Act. We note that

Bhawani Singh, Jaipur vs. ITO WD 4(1), Jpr, Jaipur

In the result, the appeal of the assessee is partly allowed

ITA 471/JPR/2025[2011-12]Status: DisposedITAT Jaipur04 Jul 2025AY 2011-12

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Shri Nikhilesh Kataria, CAFor Respondent: Shri Gautam Singh Choudhary, JCIT
Section 139(1)Section 144Section 147

otherwise also, evidences are third party and even Govt. evidences and not any self serving documents. 1.7.2 No evidence of cash deposit being undisclosed income of the assessee or not relating to the business of the assessee: It is submitted that the assessee has clearly proved that he was engaged ... from this source of income for last 15 years. However, in contrast there is nothing on record to suggest that the cash deposit was undisclosed income of the assessee and not business receipts as claimed by the assessee. As already submitted that the ld. CIT(A) In such circumstances where

Shankar Lal Ludhani Through Lata Devi Ludhani As Legal Heir, Ajmer vs. DCIT, Central Circle, Ajmer

In the result, the appeal of the assessee is allowed

ITA 406/JPR/2025[2017-18]Status: DisposedITAT Jaipur04 Jul 2025AY 2017-18

Bench: DR. S. SEETHALAKSHMI (Judicial Member)

For Appellant: Sh. Sudhir Sogani, CAFor Respondent: Sh. Gautam Singh Choudhary, JCIT
Section 115BSection 133ASection 147Section 148Section 271A

Subsequently, the assessee revised his Return of Income on 27.02.2018 declaring total income of Rs. 42,30,170/-, in which the undisclosed income surrendered during the course of survey u/s 133A of the Income Tax Act, 1961 of Rs. 3 Shankar Lal Ludhani 27,00,000/- was also included. Assessment ... notice issued u/s 148 of the IT Act, 1961. Since the assessee paid the taxes u/s 115BBE of the IT Act, 1961 on the undisclosed income detected during the course of survey, were paid after the end of the relevant previous year therefore, penalty proceedings u/s 271AAC

ACIT-3, Lucknow vs. Harshit Garg, Lucknow

In the result, the appeal filed by the Department in ITA No

ITA 451/LKW/2024[2017-18]Status: DisposedITAT Lucknow04 Jul 2025AY 2017-18

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharya.Y. 2017-18 Acit, Lucknow Vs. Harshit Garg, Pratyaksh Kar Bhawan, 57-Ram Tirath Marg, Lucknow Pan: Aiopg3763A (Appellant) (Respondent) C.O. No.25/Lkw/2024 A.Y. 2017-18 Harshit Garg, Vs. Acit, Lucknow Pratyaksh Kar Bhawan, 57- Ram Tirath Marg, Lucknow Pan: Aiopg3763A (Appellant) (Respondent) Assessee By: Sh. Akshay Agrawal, Advocate Revenue By: Sh. Sunil Kumar Rajwanshi, Addl. Cit (Dr) Date Of Hearing: 23.04.2025 Date Of Pronouncement: 04.07.2025 O R D E R Per Nikhil Choudhary, A.M.: [ This Is An Appeal Filed By The Revenue Against The Order Of The Ld. Cit(A) Dated 17.06.2024 Passed Under Section 250 Of The Income Tax Act, 1961, Wherein The Ld. Cit(A) Has Partly Allowed The Appeal Of The Assessee Against The Order Of The Ld. Ao

For Appellant: Sh. Akshay Agrawal, AdvocateFor Respondent: Sh. Sunil Kumar Rajwanshi, Addl. CIT
Section 115BSection 143(3)Section 250Section 37Section 68

under the PMGKY and claimed as deduction under section 37, holding that the deduction was only allowable if at least 25% of the declared undisclosed income was deposited in a bank or post office as per section 199C of the Scheme and since the assessee had not furnished any evidence

Assistant Commissioner of Income Tax, Central Circle2(2), Chennai vs. S K T Studios, Chennai

Appeal of the revenue is dismissed

ITA 2658/CHNY/2024[2016-17]Status: DisposedITAT Chennai04 Jul 2025AY 2016-17

Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI S. R. RAGHUNATHA (Accountant Member)

For Appellant: Ms.N.V.Lakshmi, AdvocateFor Respondent: Mr.R.Clement Ramesh Kumar, CIT
Section 132Section 132(4)Section 250

assessee firm. Further he also admitted an amount of Rs. 13.08 crores and Rs. 5.68 Crores (totalling to Rs. 18.76 crores) as undisclosed income in the hands of the assessee firm in the FY 2015-16. During the course of search, the Authorised Officer also recorded a statement ... that the total cost incurred in the production of the movie is Rs. 65,70 Crores. He also confirmed with regard to the undisclosed income of Rs. 18.76 Crores in the statement recorded from him on 14.11.2015. The assessee firm filed return of income by admitting a total income

Sanjay Taneja, New Delhi vs. ACIT, Central Circle-18, New Delhi

In the result, appeal filed by the assessee is partly allowed

ITA 1643/DEL/2022[2010-11]Status: DisposedITAT Delhi04 Jul 2025AY 2010-11

Bench: Shri Anubhav Sharma & Shri Manish Agarwal[Assessment Year : 2010-11] Shri Sanjay Taneja, Vs Acit, 198/1, Ramesh Market, Central Circle-18, East Of Kailash, Delhi New Delhi-110065. Pan-Aaept8805A Appellant Respondent Appellant By S/Shri Mohit Chaudhary, Ca, Harish, Ca, Neetu Jain, Ca & Mitika Chaudhary, Adv. Respondent By Shri Mahesh Kumar, Cit Dr Date Of Hearing 03.06.2025 Date Of Pronouncement 04.07.2025 Order

Section 132Section 133ASection 143(3)Section 250Section 254Section 69A

Girish Chaudhary (2008) 296 ITR 619 (Delhi) - Delhi High Court has held as under:- "That the revenue has to prove the undisclosed income beyond doubt. Further it was held that the document should be a speaking one and it should contain narration in respect of various figures noted therein. Otherwise ... section 69A of the Act cannot be invoked. If these amounts are treated as loans given, the interest is to be treated as undisclosed income and loans should be held as given out of undisclosed sources. However, both the principal and interest cannot treated as undisclosed money of the assessee

Joint Commissioner of Income-Tax(OSD), Central Circle-4, Ambedkar Circle vs. Siddhartha Totuka, C-Scheme

In the result, appeal of the Revenue is dismissed

ITA 305/JPR/2025[2015-16]Status: DisposedITAT Jaipur03 Jul 2025AY 2015-16

Bench: SHRI MANISH BORAD (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Shri Pramod Patni, C.AFor Respondent: Shri Sushil Kulhari, Addl. CIT-DR
Section 147Section 148Section 153ASection 153C

matter is that under Section 153A and 153C, the total income' is to be assessed. The total income includes returned income (if any), undisclosed income unearthed during the search or requisitioning and information possessed from the other sources. For Illustration: An assessee had returned income of Rs.100, undisclosed Income ... shall pass order dealing with income of Rs. 100+Rs.200+Rs.150, the total income being Rs.450/-. In cases where there is no unearthing of undisclosed income of Rs.200/-, the department can resort to proceeding under Section 147/148. 32. The argument that Section 153C can be invoked in case there

Shafi Ahamed, Kanpur vs. ACIT, CC-1, Kanpur

In the result, the appeal of the Assessee stands allowed for statistical purposes

ITA 231/LKW/2025[2021-22]Status: DisposedITAT Lucknow03 Jul 2025AY 2021-22

Bench: Shri. Sudhanshu Srivastavaassessment Year: 2021-22 Shafi Ahamed V. The Acit 133/194 ‘O’ Block Central Circle 1 Sabzi Mandi Kanpur Kidwai Nagar, Kanpur Tan/Pan:Alhpa0988P (Appellant) (Respondent) Appellant By: None Respondent By: Shri Amit Kumar, D.R. O R D E R

For Appellant: NoneFor Respondent: Shri Amit Kumar, D.R
Section 115BSection 132ASection 143(3)

nature and source of the seized cash of Rs.12,00,000/- with complete documentary evidences, the Assessing Officer (AO) treated the same as undisclosed income and added the same to the income of the assessee. 2.2 The AO also noticed that the assessee had a credit balance of Rs.39 ... Kanpur by raising the following grounds of appeal: 01. THAT the AO added the amount of Rs.12,00,000/- as undisclosed income, the CIT(A) has upheld the same, the action of CIT(A) is erroneous in as much as the provisions of undisclosed income is not apply

Lysa Trading LLP, Ahmedabad, Gujarat vs. Income Tax Officer, Ward 1(2)(3), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 208/AHD/2025[2022-23]Status: DisposedITAT Ahmedabad03 Jul 2025AY 2022-23

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2022-23 Lysa Trading Llp Ito, Ward-1(2)(3) Corporate House-2, Shilp Vs Ahmedabad. Corporate Park Rajpath Rangoli Road Bodakdev Ahmedabad 380 054. Pan : Aaifl 3030 D (Applicant) (Responent) : Assessee By Ms.Amrin Pathan, Ar Revenue By : Shri Yogesh Mishra, Sr.Dr सुनवाई क" तारीख/Date Of Hearing : 08/05/2025 घोषणा क" तारीख /Date Of Pronouncement: 03/07/2025 आदेश आदेश/O R D E R आदेश आदेश

For Respondent: Shri Yogesh Mishra, Sr.DR
Section 143(3)Section 194Section 250Section 270A

accepted and therefore the shortfall in rental income shown of Rs.17,08,908/- is added to the total income of the assessee being undisclosed income of the assessee. 5. The ld.CIT(A) confirmed the order of the AO reiterating his finding that evidence in the form of invoice raised

Sahyog Construction, Vadodara vs. The ACIT, Circle-1(1)(1) Previously Circle-1(3), Vadodara

In the result, appeal filed by the assessee is dismissed

ITA 104/AHD/2025[2017-18]Status: FixedITAT Ahmedabad03 Jul 2025AY 2017-18

Bench: PER SMT. ANNAPURNA GUPTA (Accountant Member)

For Appellant: Shri Hemant Suthar, A.RFor Respondent: Shri Kamlesh Makwana, CIT. DR
Section 115BSection 250Section 68

such a case no double taxation. It is not a case where the income sought to be taxed was held to be undisclosed income of a disclosed source, the income of which source had previously been taxed on the basis of an estimate. If it were so, the question

Asst. Commissioner of Income Tax, Central Circle-3(1), Hyderabad vs. B.Ramalinga Raju, Hyderabad

In the result, appeal filed by the Assessee and the appeal filed by the Revenue are allowed for statistical purposes

ITA 56/HYD/2020[2003-04]Status: DisposedITAT Hyderabad03 Jul 2025AY 2003-04

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA K C DevdasFor Respondent: Sri B Bala Krishna, CIT-DR
Section 143(3)Section 147

ITA.No.56/Hyd./2020 at Rs.504,65,27,908/- by making additions towards interest income on accrual basis, addition towards unexplained credits and addition towards undisclosed income being unmatched salary payments from the bank accounts of the company held at Vienna. 6. Being aggrieved by the assessment order passed

Byrraju Ramalinga Raju, Hyderabad vs. Dy. Commissioner of Income Tax, Central Circle-8, Hyderabad

In the result, appeal filed by the Assessee and the appeal filed by the Revenue are allowed for statistical purposes

ITA 1865/HYD/2019[2003-04]Status: DisposedITAT Hyderabad03 Jul 2025AY 2003-04

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA K C DevdasFor Respondent: Sri B Bala Krishna, CIT-DR
Section 143(3)Section 147

ITA.No.56/Hyd./2020 at Rs.504,65,27,908/- by making additions towards interest income on accrual basis, addition towards unexplained credits and addition towards undisclosed income being unmatched salary payments from the bank accounts of the company held at Vienna. 6. Being aggrieved by the assessment order passed