Section 68 of the Income Tax Act

Income-tax Act, 2025: s.102

Section 68 of the Income-tax Act, 1961 corresponds to section 102 (Unexplained credits) of the Income-tax Act, 2025.

Read section 102 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 68 is Pr. CIT v. Abhisar Buildwell (P.) Ltd. (149 Taxmann.com 399), cited in 2,379 of the 29,931 judgments on BharatTax that turn on this section.

Leading authorities on Section 68

Pr. CIT v. Abhisar Buildwell (P.) Ltd.
149 Taxmann.com 399 · 2023 · Supreme Court
2,379
citing judgments

An assessment under section 153A is without jurisdiction if there is an absence of incriminating material for an unabated assessment year.

Sumati Dayal v. CIT
214 ITR 801 · 1995 · Supreme Court
1,967
citing judgments

The Revenue is entitled to look behind the apparent form of a transaction to discover its true nature, applying the test of human probabilities and surrounding circumstances. If transactions defy logic or are unnatural, they can be treated as bogus, even if supported by some documentation, especially in cases of cash credits or unexplained investments.

CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd.
374 ITR 645 · 2015 · High Court
1,823
citing judgments

In Section 153A proceedings, the scope of assessment extends to abated proceedings, enabling an assessee to raise fresh legal claims that could have been made in regular assessment proceedings.

CIT v. Kelvinator of India Ltd.
320 ITR 561 · 2010 · Supreme Court
1,673
citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

CIT v. Durga Prasad More
82 ITR 540 · 1971 · Supreme Court
1,579
citing judgments

Tax authorities must judge evidence using the test of human probabilities and consider the apparent as real until there are reasons to believe it is not. They can rely on circumstantial evidence and the preponderance of probabilities to determine the genuineness of transactions.

GKN Driveshafts (India) Ltd. v. ITO
259 ITR 19 · 2003 · Supreme Court
1,349
citing judgments

When a notice under Section 148 of the Income Tax Act is issued, the Assessing Officer is bound to furnish reasons for reopening upon the assessee's request and must dispose of the assessee's objections to the notice by passing a speaking order.

Dhakeshwari Cotton Mills Ltd. v. CIT
26 ITR 775 · 1954 · Supreme Court
1,061
citing judgments

Corroborative evidence is essential to support evidence found on third-party premises, and an assessment cannot be based on suspicion, surmises, or conjecture.

ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.
291 ITR 500 · 2007 · Supreme Court
1,030
citing judgments

For initiating reassessment proceedings under Section 147, the Assessing Officer needs only prima facie material providing a reason to believe that income has escaped assessment. Conclusive proof or the sufficiency/correctness of the material is not required at the stage of issuing the notice under Section 148.

CIT v. Orissa Corporation Pvt. Ltd.
159 ITR 78 · 1986 · Supreme Court
897
citing judgments

When an assessee provides the identity and address of a creditor or investor for a cash credit or share capital under Section 68, the burden shifts to the Department to establish lack of genuineness or creditworthiness, requiring it to conduct further inquiries; mere non-compliance by third parties to summons cannot be the sole basis for an adverse inference against the assessee.

Raymond Woollen Mills Ltd. v. ITO
236 ITR 34 · 1999 · Supreme Court
862
citing judgments

For reassessment proceedings under Section 148, the Assessing Officer only needs prima facie material to have a reason to believe income has escaped assessment. Conclusive proof or evaluation of the sufficiency and correctness of such material is not required at the stage of issuing the notice.

Judgments on Section 68

Dr. Vishan Swaroop Gupta, Jaipur vs. ITO, Ward-7(3), Jaipur

In the result, appeal of the assessee is allowed

ITA 13/JPR/2020[2015-16]Status: DisposedITAT Jaipur28 Jan 2021AY 2015-16

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 13/Jp/2020 Fu/Kzkj.K O"Kz@Assessment Year :2015-16 Cuke Dr. Vishan Swaroop Gupta, I.T.O. Vs. Plot No. 2, Scheme No. 2, Arya Ward 7(3) Vihar Colony, Tonk Road, Jaipur. Jaipur. Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Abipg 2253 Q Vihykfkhz@Appellant Izr;Fkhz@Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By : Shri Rajiv Khandelwal (Ca) Jktlo Dh Vksj Ls@ Revenue By : Smt. Monisha Choudhary (Addl.Cit) Lquokbz Dh Rkjh[K@ Date Of Hearing : 13/01/2021 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 28/01/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. This Is An Appeal Filed By The Assessee Against The Order Of Ld.Cit(A)- 3, Jaipur Dated 30/10/2019 For The A.Y. 2015-16 In The Matter Of Order Passed U/S 143(3) Of The Income Tax Act, 1961 (In Short, The Act), Wherein Following Grounds Have Been Taken. “1. The Commissioner Of Income Tax (Appeals)-3, Jaipur (Hereinafter Referred To As The Cit(A)) Erred In Upholding The Action Of The Income Tax Officer, Ward 7(3), Jaipur (Hereinafter Referred To As The Assessing Officer) In Making An Addition Of Rs. 4,03,000/- Under Section 68 Of The Act As Alleged Unexplained Cash Deposited In Bank Accounts. 2. The Appellant Contends That On The Facts & In The Circumstances Of The Case & In Law, The Cit(A) Ought Not To Have Upheld The Action Of 2

For Appellant: Shri Rajiv Khandelwal (CA)For Respondent: Smt. Monisha Choudhary (Addl.CIT)
Section 143(3)Section 44ASection 68

Shri Mahesh Yadav, A-225, Jai Nagar, Sikar Road, Jaipur vs. ITO Ward-4(3), Jaipur, Ward-4(3)

In the result, this appeal of the assessee is allowed for statistical purposes only

ITA 590/JPR/2019[2008-09]Status: DisposedITAT Jaipur28 Jan 2021AY 2008-09

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 590/Jp/2019 Fu/Kzkj.K O"Kz@Assessment Year :2008-09 Cuke Mahesh Yadav, Ito, Vs. A-225, Jai Nagar, Sikar Road, Ward-4(3), Jaipur. Jaipur. Lfkk;H Ys[Kk La-@Thvkbzvkj La-@Pan/Gir No.: Aatpy 9371 K Vihykfkhz@Appellant Izr;Fkhz@Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By: Shri C.L. Yadav (Ca) Jktlo Dh Vksj Ls@ Revenue By :Smt. Monisha Choudhary(Addl.Cit) Lquokbz Dh Rkjh[K@ Date Of Hearing : 18/01/2021 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 28/01/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. The Present Appeal Has Been Filed By The Assessee Against The Order Of The Ld. Cit(A), Ajmer Dated 15/02/2019 For The A.Y. 2008-09, Wherein The Assessee Has Raised Following Grounds Of Appeal: “1. The Ld. Cit(A) Has Erred In Not Admitting The Additional Evidence Furnished During The Course Of Appellate Proceedings Under Rule 46A. 2. The Ld. Cit(A) Has Erred In Not Adjudicating The Issue On Merits. 3. The Ld. Cit(A) Has Erred In Law & On Facts In Confirming The Addition Of Rs. 46,27,571/- Made By The Ao. On Account Of Unexplained Cash Deposited In The Saving Bank Account, Ignoring

For Appellant: Shri C.L. Yadav (CA)For Respondent: Smt. Monisha Choudhary(Addl.CIT)
Section 148