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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

Deputy Commissioner of Income Tax, Delhi vs. Brij Gopal Construction Company Private Limited, Delhi

In the result, all the appeals filed by the Revenue in ITA Nos

ITA 2472/DEL/2023[2012-13]Status: DisposedITAT Delhi04 Sept 2024AY 2012-13

Bench: Shri Saktijit Dey & Shri S.Rifaur Rahman

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Ms. Nimisha Singh, CIT DR
Section 132Section 139Section 143(3)Section 153ASection 68Section 69C

assessments made under Section 143(1)(a) or 143(3) of the Act, 1961 and to re- assess the total income taking notice of undisclosed income even found during the search and seizure operation. 15.1 In view of the discussion hereinabove, once during search undisclosed income is found on unearthing ... that the AO has the power to ITA Nos.2472 & 2473/DEL/2023 ITA Nos.2751 to 2754/DEL/2023 reassess the return of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to material that was available at the time of original assessment does

Brij Gopal Construction Company (P) Ltd., New Delhi vs. DCIT Central Circle-3, New Delhi

In the result, all the appeals filed by the Revenue in ITA Nos

ITA 2324/DEL/2023[2020-21]Status: DisposedITAT Delhi04 Sept 2024AY 2020-21

Bench: Shri Saktijit Dey & Shri S.Rifaur Rahman

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Ms. Nimisha Singh, CIT DR
Section 132Section 139Section 143(3)Section 153ASection 68Section 69C

assessments made under Section 143(1)(a) or 143(3) of the Act, 1961 and to re- assess the total income taking notice of undisclosed income even found during the search and seizure operation. 15.1 In view of the discussion hereinabove, once during search undisclosed income is found on unearthing ... that the AO has the power to ITA Nos.2472 & 2473/DEL/2023 ITA Nos.2751 to 2754/DEL/2023 reassess the return of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to material that was available at the time of original assessment does

Brij Gopal Construction Company (P) Ltd., New Delhi vs. DCIT Central Circle -3, New Delhi

In the result, all the appeals filed by the Revenue in ITA Nos

ITA 2323/DEL/2023[2019-20]Status: DisposedITAT Delhi04 Sept 2024AY 2019-20

Bench: Shri Saktijit Dey & Shri S.Rifaur Rahman

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Ms. Nimisha Singh, CIT DR
Section 132Section 139Section 143(3)Section 153ASection 68Section 69C

assessments made under Section 143(1)(a) or 143(3) of the Act, 1961 and to re- assess the total income taking notice of undisclosed income even found during the search and seizure operation. 15.1 In view of the discussion hereinabove, once during search undisclosed income is found on unearthing ... that the AO has the power to ITA Nos.2472 & 2473/DEL/2023 ITA Nos.2751 to 2754/DEL/2023 reassess the return of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to material that was available at the time of original assessment does

Brij Gopal Construction Company (P) Ltd., New Delhi vs. DCIT Central Circle-3, New Delhi

In the result, all the appeals filed by the Revenue in ITA Nos

ITA 2322/DEL/2023[2018-19]Status: DisposedITAT Delhi04 Sept 2024AY 2018-19

Bench: Shri Saktijit Dey & Shri S.Rifaur Rahman

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Ms. Nimisha Singh, CIT DR
Section 132Section 139Section 143(3)Section 153ASection 68Section 69C

assessments made under Section 143(1)(a) or 143(3) of the Act, 1961 and to re- assess the total income taking notice of undisclosed income even found during the search and seizure operation. 15.1 In view of the discussion hereinabove, once during search undisclosed income is found on unearthing ... that the AO has the power to ITA Nos.2472 & 2473/DEL/2023 ITA Nos.2751 to 2754/DEL/2023 reassess the return of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to material that was available at the time of original assessment does

Brij Gopal Construction Company (P) Ltd., New Delhi vs. DCIT Central Circle-3, New Delhi

In the result, all the appeals filed by the Revenue in ITA Nos

ITA 2321/DEL/2023[2014-15]Status: DisposedITAT Delhi04 Sept 2024AY 2014-15

Bench: Shri Saktijit Dey & Shri S.Rifaur Rahman

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Ms. Nimisha Singh, CIT DR
Section 132Section 139Section 143(3)Section 153ASection 68Section 69C

assessments made under Section 143(1)(a) or 143(3) of the Act, 1961 and to re- assess the total income taking notice of undisclosed income even found during the search and seizure operation. 15.1 In view of the discussion hereinabove, once during search undisclosed income is found on unearthing ... that the AO has the power to ITA Nos.2472 & 2473/DEL/2023 ITA Nos.2751 to 2754/DEL/2023 reassess the return of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to material that was available at the time of original assessment does

Precision Component Hightech Ltd, Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 97/NAG/2024[2018-19]Status: DisposedITAT Nagpur02 Sept 2024AY 2018-19

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Precision Component Hightech Ltd., Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 96/NAG/2024[2017-18]Status: DisposedITAT Nagpur02 Sept 2024AY 2017-18

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Precision Component Hightech Ltd, Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 95/NAG/2024[2016-17]Status: DisposedITAT Nagpur02 Sept 2024AY 2016-17

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Precision Component Hightech Ltd, Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 94/NAG/2024[2015-16]Status: DisposedITAT Nagpur02 Sept 2024AY 2015-16

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Precision Component Hightech Ltd., Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 93/NAG/2024[2014-15]Status: DisposedITAT Nagpur02 Sept 2024AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Precision Component Hightech Ltd, Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 92/NAG/2024[2013-14]Status: DisposedITAT Nagpur02 Sept 2024AY 2013-14

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Precision Component Hightech Ltd., Nagpur vs. ACIT Central Circle 2(2), Nagpur

In the result, assessee’s appeal is allowed as above for all the seven years

ITA 91/NAG/2024[2012-13]Status: DisposedITAT Nagpur02 Sept 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Ms. Shikha LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 139(1)Section 143(3)Section 153CSection 234B

record it is clear that the Net Profit earned by the company should not less than 20% and they accordingly quote the tender. The undisclosed income of Company must be determined on the basis of 20% of Net Profit reduced by the Net Profit returned by the assessee

Assistant Commissioner of Income Tax, Nagpur vs. M/S. Gupta Metallics & Power Ltd, Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 91/NAG/2022[2010-11]Status: DisposedITAT Nagpur02 Sept 2024AY 2010-11

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Rajesh LoyaFor Respondent: Shri Kailash C. Kanojiya
Section 132Section 132(4)

Therefore, the Assessing Officer made addition of ` 1,17,18,149, which was added to the total income of the assessee as undisclosed income. Aggrieved, the assessee filed appeal before the first appellate authority. 8. Before the learned CIT(A) elaborate the submissions made by the assessee which are reproduced ... below:– “GROUND NO. 3: The learned AO erred in law and on facts in making addition of 人人人 Rs. 1,17,18,149/- as undisclosed income by holding that there is excess stock. We object to the addition made by AO by rejecting the explanation of the assessee and submit

ITO, Ward- 1)1), Nagpur vs. Axykno Enterprises Pvt. Ltd., Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 47/NAG/2019[2012-13]Status: DisposedITAT Nagpur02 Sept 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kapil Hirani a/wFor Respondent: Shri Kailash C. Kanojiya
Section 132(4)Section 143(3)Section 263Section 68

Assessing Officer, then the department is free to proceed to reopen their individual assessments in accordance with law but it cannot be regarded as undisclosed income of assessee company". (ii) The Hon'ble Bombay High Court in the case of CIT v/s Creative World Telefilms ... their PAN details, the department is free to proceed to reopen the individual assessments of the share applicants but it cannot be regarded as undisclosed income of the assessee U/s 68. 10.6. Reliance further placed on Umbrella Projects Pvt. Ltd. vs. ITO (ITA No. 5955/Del/2014) wherein it has been held

Gullu Mal Gulachi Lal Developers Pvt Ltd, Jaipur vs. Income Tax Officer, Ward-5(3), Jaipur

In the result, the appeal of the assesee is allowed with no orders as to costs

ITA 858/JPR/2024[2016-17]Status: DisposedITAT Jaipur02 Sept 2024AY 2016-17

erred in confirming the action of the Learned Assessing Officer in treating the sale of sarso for Rs. 11,37,639/- as undisclosed income of the company inspite of submitting the number of evidences in support of agriculture income. 2.1 All these above ground raised by the Appellant are interconnected

Shri Bhagwati Farms, Alwar vs. DCIT, Central Circle, Alwar

In the result, the appeal of the assessee is allowed with no orders as to costs

ITA 452/JPR/2024[2017-18]Status: DisposedITAT Jaipur02 Sept 2024AY 2017-18

Bench: SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri P.C. Parwal, CAFor Respondent: Mrs. Monisha Choudhary, Addl. CIT-DR
Section 115Section 68Section 69Section 69A

lower authorities was not satisfactory even then it cannot be presumed that the amount deposited in the bank account is out of the undisclosed income of the assessee without bringing on record an iota of evidence. Even otherwise to my mind, there is no bar that if earlier partners have

B.K Engineers, Khanna vs. DCIT, ACIT Central Cir-1, Ludhiana

In the result, the appeal is dismissed

ITA 644/CHANDI/2023[2019-20]Status: DisposedITAT Chandigarh30 Aug 2024AY 2019-20

Bench: Shri A.D. Jain & Krinwant Sahayआयकर अपील सं./ Ita No. 644/Chd/2023 "नधा"रण वष" / Assessment Year : 2019-20 B.K Enterprises, Vs. The Dcit / Acit, बनाम Central Circle 1, Bullepur Road, Ludhiana Near Golden Grain Club, G.T. Road, Khanna "थायी लेखा सं./Pan No: Aaefb4147M अपीलाथ"/ Appellant ""यथ"/ Repsondent

For Appellant: None (written submissions)For Respondent: Smt. Surinder Kaur Waraich, JCIT Sr.DR
Section 115BSection 133Section 69A

activity per se does not explain any income of the Assessee as business income. A burden of proving the source of cash found / any undisclosed income is on the Assessee to prove its source. From the discussion above, we find that the Assessee could not discharge its duty to prove ... find that the lower authorities [ i.e. 644-Chd-2023 – B.K. Engineers, Ludhiana 14 Assessing Officer and CIT(A) ] are justified in treating the undisclosed income found during the survey proceedings without having any direct nexus with the business of the Assessee and, therefore, the invoking of the provisions of section

Smt. Deepinder Kaur Johal, Patiala vs. ITO, Ward-4, Patiala

ITA 532/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh30 Aug 2024AY 2012-13

Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER ANDSHRI PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Tej Mohan Singh. AdvocateFor Respondent: Shri ManpreetDuggal, JCIT, Sr.DR
Section 142(1)Section 143(2)Section 147Section 148Section 250Section 253

आयकर अपीलीय अिधकरण,च"डीगढ़ "यायपीठ,च"डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH‘B’ CHANDIGARH BEFORE: SHRI

Sudarshan Bhagwandas Naval, Jalgaon vs. PCIT (Central Circle 1 Nagpur), Nagpur

Appeal is dismissed

ITA 600/PUN/2024[AY 2018-2019]Status: DisposedITAT Pune30 Aug 2024

Bench: Shri Satbeer Singh Godara & Shri G. D. Padmahshaliआयकर अपील सं. / Ita No.600/Pun/2024 िनधा"रण वष" / Assessment Year: 2018-19 Sudarshan Bhagwandas Vs. Pcit (Central), Nagpur. Naval, Naval Multispecialty Hospital, Near Bhaskar Market, Jilla Peth, M.J. College Road, Jalgaon- 425001. Pan : Aafpn7830C Appellant Respondent Assessee By : Shri Abhishek K. Choksy & Shri Ankit Davda Revenue By : Shri Ajay Kumar Keshari Date Of Hearing : 27.08.2024 Date Of Pronouncement : 30.08.2024 आदेश / Order Per Satbeer Singh Godara, Jm: This Assessee’S Appeal For Assessment Year 2018-19 Arises Against The Pcit (Central), Nagpur’S Order Dated 01.02.2024 Passed In Case No. Itba/Rev/F/Rev5/2023-24/1060387551(1) Involving Proceedings U/S 263 Of The Income Tax Act, 1961; In Short “The Act”. Heard Both The Parties At Length. Case File Perused.

For Appellant: Shri Abhishek K. Choksy &For Respondent: Shri Ajay Kumar Keshari
Section 143(3)Section 154Section 263Section 263(1)

Section 263 of Income Tax Act 1961. without prejudice, I state that the valuation report is the indicative to ascertain whether there is any undisclosed income or under-valuation. Valuation is as per books of account is Rs. 4,07,98,516.88/- whereas valuation report specifies

Kuppusamy Meiyappan, Salem vs. DCIT, Circle-1(1), Salem

In the result, appeal filed by the assessee is allowed

ITA 647/CHNY/2024[2017-18]Status: DisposedITAT Chennai30 Aug 2024AY 2017-18

Bench: Shri Manu Kumar Giri & Shri S.R. Raghunathaआयकर अपील सं./Ita No.647/Chny/2024 िनधा9रण वष9 /Assessment Year: 2017-18 Kuppusamy Meiyappan, The Dy. Commissioner Of 2/263, Perumal Koil Medu Street, Vs. Income Tax, No.8, Seelanaickanpatty, Circle-1(1), Salem – 636 201. Salem. [Pan: Alppm 0517Q] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथF की ओर से/ Appellant By : Shri S. Sridhar, Advocate HiथF की ओर से /Respondent By : Shri D. Hema Bhupal, Jcit सुनवाई की तारीख/Date Of Hearing : 03.07.2024 घोषणा की तारीख /Date Of Pronouncement : 30.08.2024 आदेश / O R D E R Per S.R. Raghunatha, A.M : This Appeal By The Assessee Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals), (Nfac), Delhi [Hereinafter “Cit(A)”] In Din & Order No. Itba/Nfac/S/250/2023- 24/1059373357(1), Dated 04.01.2024. The Assessment Was Framed By The Assessing Officer For The Assessment Year 2017-18 U/S. 143(3) Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Vide Order Dated 29.12.2019. :- 2 -: 2. There Is A Delay Of 8 Days In Filing The Appeal By The Assessee.

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri D. Hema Bhupal, JCIT
Section 143(2)Section 143(3)Section 271ASection 69A

demonetisation. As already stated, excess amount of SBNs :- 7 -: deposited for which no satisfactory explanation is provided are nothing but the assessee's undisclosed income irrespective of the fact of maintaining the books of accounts. Mere routing the excess cash in SBNs in books of account beyond known quantum