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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

Gautam Chopra, New Delhi vs. DCIT, Jhandewallan Extension

ITA 2567/DEL/2025[2021-2022]Status: DisposedITAT Delhi21 Jan 2026AY 2021-2022

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 132Section 132(4)Section 142(1)Section 143(2)Section 147Section 148Section 151Section 250Section 69C

again emphasised in para 38 of RRJ Securities with the Court laying stress on the existence of material that may be reflective of undisclosed income being of vital importance. All the aforenoted judgments thus reinforce the requirement of incriminating material having an ineradicable link to the estimation of income fora ... order in respect of each of the years which were made subject matter of the notice and which would deal with both disclosed and undisclosed income. This too reinforces our view that Section 153C would apply only to such AYs' where the jurisdictional AO is satisfied and has incriminating material

Aditi Infrabuild and Services Ltd., Delhi vs. DCIT, Central Circle-30, Delhi

ITA 5970/DEL/2024[2019-20]Status: DisposedITAT Delhi21 Jan 2026AY 2019-20

Bench: Shri Raj Kumar Chauhan & Shri Manish Agarwal

Section 132Section 139(1)Section 153ASection 153CSection 153DSection 250Section 37

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI "A" BENCH: NEW DELHI ITA No.5970/Del/2024 BEFORE SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER

Income Tax Officer, Delhi vs. K G Buildwell Private Limited, Delhi

In the result, the appeal filed by the Department of Revenue is dismissed

ITA 3598/DEL/2023[2012-13]Status: DisposedITAT Delhi21 Jan 2026AY 2012-13

Bench: Shri S Rifaur Rahman & Shri Vimal Kumar

Section 143(3)Section 147Section 148Section 250

facts and circumstances of the case, the Ld. CIT(A) was justified in deleting the addition made by the AO on account of undisclosed income on suppressed sale of property by not considering the Valuation Report of DVO and comments of AO in the remand report submitted ... nature of independent inquiries made by the Ld. AO which warranted a reference to the DVO There could not have been any issue of undisclosed income in the case of the appellant as the Ld. AO had no material/information to this effect, the assessee had submitted all the necessary documents

Dileep Kumar Gupta, Delhi vs. DCIT, Central Circle-31, Delhi

ITA 3593/DEL/2023[2014-15]Status: DisposedITAT Delhi21 Jan 2026AY 2014-15

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 132Section 139Section 142(1)Section 143(2)Section 143(3)Section 153ASection 153DSection 250

search cases. Section 158BC prescribes the procedure for block assessment. Clause (c) of section 158BC enables the Assessing Officer, on determination of the undisclosed income of the block period, to pass an order of assessment and determine the tax payable by him on the basis of such assessment. Clause ... down in section 158BB and the Provisions of section 142, sub-sections (2) and (3) of section 143 and section 144, while determining the undisclosed income of the block period. It is thus evident that the procedure clearly contemplates the Assessing Officer giving a hearing to the assessee before making

Dileep Kumar Gupta, Delhi vs. DCIT, Central Circle-31, New Delhi

ITA 3592/DEL/2023[2013-14]Status: DisposedITAT Delhi21 Jan 2026AY 2013-14

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 132Section 139Section 142(1)Section 143(2)Section 143(3)Section 153ASection 153DSection 250

search cases. Section 158BC prescribes the procedure for block assessment. Clause (c) of section 158BC enables the Assessing Officer, on determination of the undisclosed income of the block period, to pass an order of assessment and determine the tax payable by him on the basis of such assessment. Clause ... down in section 158BB and the Provisions of section 142, sub-sections (2) and (3) of section 143 and section 144, while determining the undisclosed income of the block period. It is thus evident that the procedure clearly contemplates the Assessing Officer giving a hearing to the assessee before making

Rivet Health Club Pvt Ltd, Faridabad vs. ITO Ward - 2(2), Faridabad

In the result, the appeal of the assessee is allowed

ITA 6182/DEL/2019[2015-16]Status: DisposedITAT Delhi21 Jan 2026AY 2015-16

Bench: Sh. S. Rifaur Rahman & Sh. Sudhir Kumar

Section 142(1)Section 143(2)Section 143(3)Section 68

Department is free to proceed to reopen their individual assessments in accordance with law, but it cannot be regarded as undisclosed income of the assessee company. In the present case the assessee has provide the sufficient materials to prove the genuineness of the shareholders apart from giving the PAN Card

Dharam Pal, Pathankot vs. Income Tax Officer Ward-1, Pathankot

The appeal stands partly allowed accordingly

ITA 76/ASR/2024[2017-18]Status: DisposedITAT Amritsar20 Jan 2026AY 2017-18

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Shri Udayan Das Gupta, Jm

For Appellant: Adjournment Application rejectedFor Respondent: Sh. Charan Dass (Addl. CIT) – Ld. Sr. DR
Section 115BSection 143(3)Section 68

Kalyan Yojana, 2016’ (PMGKY) has been proposed in the Bill. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed ... levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’. This amount is proposed to be utilised

Assistant Commissioner of Income Tax, Central Circle-2, Kanpur. vs. Shrisanjay Kaumar Agarwal, Agra

In the result, the appeal of the Revenue is dismissed

ITA 31/LKW/2023[2013-14]Status: DisposedITAT Lucknow20 Jan 2026AY 2013-14

Bench: Sh. Kul Bharat & Sh. Nikhil Choudharya.Y. 2013-14 Asstt. Commissioner Of Income Vs. Sanjay Kumar Agrawal, Tax, Central Circle-2, Kanpur D-59, Kamla Nagar, Agra-282005 Pan: Aaupa2845H (Appellant) (Respondent) Assessee By: Sh. Anurag Sinha, Adv Revenue By: Sh. Neeraj Kumar, Cit Dr Date Of Hearing: 27.10.2025 Date Of Pronouncement: 20.01.2026 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)- 4, Kanpur Dated 14.11.2022 Wherein The Ld. Cit(A) Has Allowed The Appeals Of The Assessee Against The Orders Of The Ld. Ao Passed Under Section 153A R.W.S. 153C Of The Income Tax Act, 1961. The Grounds Of Appeal Are As Under:- “1. Whether On Facts & Circumstances Of The Case & In Law, Ld. Cit (A)-Iv, Kanpur Has Erred In Deleting The Addition Of Rs. 3,00,00,000/- Made U/S 69A By The Ao Ignoring The Fact That Such Addition Was Made By The Ao On The Basis Of Entries Found On These Loose Papers Seized From The Possession Of Such A Person Who Was Having Business Relations With All Persons Named Therein Including Assessee. 2. Whether On Facts & Circumstances Of The Case & In Law, Ld. Cit (A)-Iv, Kanpur Has Erred In Deleting The Addition Of Rs. 3,00,00,000/- Made U/S 69A By Accepting The Denial By The Person From Whose Possession It Was Recovered & The Assessee Regarding The Relation Of Its Entries With Them Without Considering The Facts & Circumstances Of The Case In Totality. 3. That The Order Of The Cit(A) Being Erroneous In Law & Facts Be Set Aside & Order Of The A.O. Be Restored. 4. That The Appellant Craves Leave To Add, Alter, Adduce Or Amend Any Ground Or Grounds On Or Before The Date Of Hearing Of Appeal.”

For Appellant: Sh. Anurag Sinha, AdvFor Respondent: Sh. Neeraj Kumar, CIT DR
Section 132Section 143(2)Section 153ASection 153CSection 292CSection 69A

case was the AO. It was further submitted that no evidence had been found indicating any transaction with Sh. Amit Shukla giving rise to undisclosed income. Furthermore, the assessee had requested for examination of Sh. Amit Shukla and for granting the assessee the right to cross examination which have

Krunalkumar Virambhai Desai, Gandhinagar vs. The ITO, Ward-1, Gandhinagar

In the result, the appeal of the assessee is allowed

ITA 1703/AHD/2025[2014-15]Status: DisposedITAT Ahmedabad20 Jan 2026AY 2014-15

Bench: Shri Sddhartha Nautiyal & Shri Narendra Prasad Sinhaassessment Years:2014-15

Section 147Section 234A

concluded that the assessee had purchased immovable property and made cash transaction of Rs.5,01,42,716/-. it is found that the assessee has undisclosed income from the disproportionate assets. The assessee has filed return of income, however, the assessee has failed to explain the source of undisclosed income ... transaction as mentioned above. As return of income has filed for the AY. 2014-15 for the year under consideration, disproportionate assets is his undisclosed income for the year that has escaped assessment. Accordingly, as no assessment was made in this case, the only requirement to initiate proceedings

Sandip Jhunjhunwala, Kolkata vs. DCIT, Central Circle 4(3), Kolkata

In the result, appeal of assessee is allowed and that of Revenue is dismissed”

ITA 2483/KOL/2025[2012-2013]Status: DisposedITAT Kolkata20 Jan 2026AY 2012-2013

Bench: Shri Rajesh Kumar, Am & Shri Pradip Kumar Choubey, Jm

For Appellant: Shri S.K. Tulsian &For Respondent: Shri S.B. Chakraborthy, DR
Section 132Section 132(4)Section 133ASection 139(1)Section 143(3)Section 271(2)Section 271A

271AAA of the Act, whereas during the course of assessment proceedings as well as during penalty proceedings, the modus operandi of earning the undisclosed income from commodity profits of %4,40,05,942/- and profit in shares of %10,00,45,313/- aggregating to %14,40,51,253/- with details ... assessee voluntarily disclosed in the statement recorded u/s 132(4) of the Act an amount of 714,14,51,253/- as his net undisclosed income. The assessee submitted that the undisclosed income was derived from the commodity profit in shares. Pertinent to note that the assessee filed the return

Deputy Commissioner of Income Tax, Central Circle-4(3), Kolkata vs. Vivek Gupta, Kolkata

Appeal of the revenue is dismissed and cross objection is partly allowed

ITA 1592/KOL/2025[2017-18]Status: DisposedITAT Kolkata20 Jan 2026AY 2017-18

Bench: SHRI RAJESH KUMAR, ACCOUNTANT MEMBER SHRI PRADIP KUMAR CHOUBEY (Judicial Member)

Section 133ASection 143(1)Section 250Section 68

transactions made with these entities through a WhatsApp Group- namely King-Cotonou' as mentioned at para no.9.2. & 9.2.1 of the asst order are the undisclosed income of the said offshore entitieswhich is liable to be charged in the hands of the assessee as the main operator and key person

DCIT, Cir-5(1), Kolkata vs. M/S Coal India Ltd., Kolkata

ITA 1697/KOL/2019[2014-15]Status: DisposedITAT Kolkata20 Jan 2026AY 2014-15

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

1697/KOL/2019 AYs: 2011-12 to 2014-15 M/s. Coal India Ltd. adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave to add to and/or alter ... case, the learned CIT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

DCIT, Cir-5(1), Kolkata vs. M/S Coal India Ltd., Kolkata

In the result, the Revenue’s appeal in ITA No

ITA 1696/KOL/2019[2013-14]Status: DisposedITAT Kolkata20 Jan 2026AY 2013-14

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

1697/KOL/2019 AYs: 2011-12 to 2014-15 M/s. Coal India Ltd. adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave to add to and/or alter ... case, the learned ClT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

M/S Coal India Ltd., Kolkata vs. DCIT, Cir-5(1), Kolkata

ITA 1407/KOL/2019[2014-15]Status: DisposedITAT Kolkata20 Jan 2026AY 2014-15

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 1Section 115JSection 250

learned CIT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave ... case, the learned CIT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

M/S. Coal India Limited, Kolkata vs. DCIT, Circle - 5(1), Kolkata

In the result, the Revenue’s appeal in ITA No

ITA 1406/KOL/2019[2013-14]Status: DisposedITAT Kolkata20 Jan 2026AY 2013-14

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

1697/KOL/2019 AYs: 2011-12 to 2014-15 M/s. Coal India Ltd. adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave to add to and/or alter ... case, the learned ClT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

DCIT, Circle - 5(1), Kolkata vs. M/S. Coal India Limited, Kolkata

ITA 623/KOL/2018[2012-13]Status: DisposedITAT Kolkata20 Jan 2026AY 2012-13
Section 115JSection 250

assessee is partly allowed for statistical purposes. 6. Ground No. 3 relates to addition of ₹1,92,32,107/- alleging the same as undisclosed income both under the normal provisions as well as u/s 115JB of the Act. The Ld. AO noted on comparison of ITS details as per Form ... well since the provisions are similarly worded. Hence, in view of the finding of the Hon'ble Supreme Court, the undisclosed income, if any, is not liable to be included while computing book profit for the purpose of section 115JB of the Act. Hence, Ground No. 3 of the appeal

DCIT, Circle - 5(1), Kolkata vs. M/S. Coal India Limited, Kolkata

ITA 622/KOL/2018[2011-12]Status: DisposedITAT Kolkata20 Jan 2026AY 2011-12

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

learned CIT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave ... case, the learned CIT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

Coal India Limited, Kolkata vs. DCIT, Circle - 5(1), Kolkata

ITA 467/KOL/2018[2012-13]Status: DisposedITAT Kolkata20 Jan 2026AY 2012-13

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

1697/KOL/2019 AYs: 2011-12 to 2014-15 M/s. Coal India Ltd. adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave to add to and/or alter ... case, the learned CIT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

Coal India Limited, Kolkata vs. DCIT, Circle - 5(1), Kolkata

In the result, the Revenue’s appeal in ITA No

ITA 466/KOL/2018[2011-12]Status: DisposedITAT Kolkata20 Jan 2026AY 2011-12

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 115JSection 250

1697/KOL/2019 AYs: 2011-12 to 2014-15 M/s. Coal India Ltd. adding Rs. 1,92,32,107/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave to add to and/or alter ... case, the learned ClT(Appeals) erred in confirming the action of the Assessing Officer in adding Rs. 1,44,423/- alleging the same as undisclosed income both under the normal provisions and while computing book profits under section 115JB of the Act. 4) That the appellant craves leave

Deputy Commissioner of Income Tax, Chennai vs. Muthulakshmi Vellaisamy, Tirupur

In the result, the appeal filed by the Revenue is dismissed

ITA 610/CHNY/2025[2020-21]Status: DisposedITAT Chennai20 Jan 2026AY 2020-21

Bench: Shri S.S. Viswanethra Ravi & Shri S. R. Raghunathaआयकर अपील सं./Ita No.: 605/Chny/2025 निर्धारण वर्ष / Assessment Year: 2020-21 Deputy Commissioner Of Income Tax, Central Circle-2(4), Chennai. (अपीलार्थी/Appellant) Gnanaguru Lavanya, Vs. 52, Iswarya Garden, Rakkiyapalayam Road, Ammapalayam, Avinashi Road, Tirupur - 641 654. [Pan: Abipl-5558-M] (प्रत्यर्थी/Respondent) आयकर अपील सं./Ita No.: 610/Chny/2025 निर्धारण वर्ष / Assessment Year: 2020-21 Deputy Commissioner Of Income Tax, Central Circle-2(4), Chennai. Muthulakshmi Vellaisamy, Vs. 52, Iswarya Garden, Rakkiyapalayam Road, Ammapalayam, Avinashi Road, Tirupur - 641 654. [Pan:Afbpg-3703-L] (प्रत्यर्थी/Respondent) (अपीलार्थी/ Appellant) अपीलार्थी की ओर से/Appellant By : Ms. E. Pavuna Sundari, C.I.T. प्रत्यर्थी की ओर से /Respondent By : Shri. R. Venkata Raman, C.A. सुनवाई की तारीख/Date Of Hearing : 12.11.2025 घोषणा की तारीख/Date Of Pronouncement : 20.01.2026 :-2-:

For Appellant: Ms. E. Pavuna Sundari, C.I.TFor Respondent: Shri. R. Venkata Raman, C.A
Section 132Section 132(4)Section 139(4)

loose sheet and the third party admission, which cannot be considered as conclusive evidence against the assessee to bring on money to tax as undisclosed income. The AO is required to bring further evidence on record to show that actual on money is exchanged between the parties, but literally failed ... loose sheet and the third party admission, which cannot be considered as conclusive evidence against the assessee to bring on money to tax as undisclosed income. The AO is required to bring further evidence on record to show that actual on money is exchanged between the parties, but literally failed