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

Deepsikha Distributors Pvt. Ltd., Kolkata vs. I.T.O., Ward - 6(1), Kolkata

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

ITA 1714/KOL/2025[2012-2013]Status: DisposedITAT Kolkata27 Oct 2025AY 2012-2013

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2012-13 Deepsikha Distributors Pvt. Ltd..……………………………….…….……Appellant 15/2/1, Deodar Street, Kolkata-700019. [Pan: Aaacd9515E] Vs. Ito, Ward-6(1), Kolkata..………………………..………...……...…..…..Respondent Appearances By: Shri Manish Tiwari, Fca, Appeared On Behalf Of The Appellant. Shri Manas Mondal, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 15, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: This Appeal Filed By The Assessee Is Directed Against The Order Dated 12.06.25 Of The National Faceless Appeal Centre [‘Cit(A)’] Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”). Brief Facts Of The Case Are That The Assessee Is Engaged In The 2. Business Of Investment In Shares & Filed Its Return Of Income On For A.Y. 2012-13 U/S 139(1) Of The Act Declaring Total Income Of Rs.279/-. The Return Was Selected For Scrutiny & An Order U/S 143(3) Of The Act Was Passed On 17.03.2015 Assessing Total Income Of The Assessee At Rs.1,15,00,279/- By Adding Rs.1,15,00,000/- As Unexplained Cash Credit U/S 68 Of The Act. After That, The Assessee Went In Appeal Before The Ld. Cit(A) & The Ld. Cit(A) Vide Order Dated 30.06.2015 Allowed The Appeal Deepsikha Distributors Pvt. Ltd Of The Assessee. Thereafter, The Revenue Preferred Appeal Before The Itat Wherein The Tribunal Set Aside The Order Of The Ld. Cit(A) & Asked The Assessing Officer To Pass De Novo Assessment & The Assessing Officer Vide Fresh Assessment Order U/S 254/250/143(3) Of The Act Sustained The Same Addition Of Rs.1,15,00,000/- U/S 68 Of The Act As Unexplained Cash Credit.

Section 139(1)Section 143(3)Section 250Section 254Section 68

DCIT, CC-2(1), Kolkata vs. Amanat Trade Comm Pvt Ltd, Kolkata

In the result, all the captioned appeals of the revenue are dismissed

ITA 1311/KOL/2025[2012-13]Status: DisposedITAT Kolkata27 Oct 2025AY 2012-13

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1290, 1307 & 1308/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Frankdeal Tradcom Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aabcf1099A] Ita Nos.1309, 1310 & 1311/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Amanat Trade Comm Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aagca3278H] Appearances By: Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Miraj D Shah, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 14, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: All The Captioned Appeals Have Been Preferred By The Assessee For The Assessment Years 2010-11, 2011-12 & 2012-13 Against Separate Orders Of The Commissioner Of Income Tax (Appeals)-26, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since, The Issues Involved In All The Appeals Are Common & Relate To The Same Search Operation, Therefore, These Appeals Have Been Heard Together & Are

Section 132Section 139(1)Section 143(1)Section 143(2)Section 153ASection 250Section 68Section 69C

DCIT, CC-2(1), Kolkata vs. Amanat Trade Comm Pvt Ltd, Kolkata

In the result, all the captioned appeals of the revenue are dismissed

ITA 1310/KOL/2025[2011-12]Status: DisposedITAT Kolkata27 Oct 2025AY 2011-12

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1290, 1307 & 1308/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Frankdeal Tradcom Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aabcf1099A] Ita Nos.1309, 1310 & 1311/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Amanat Trade Comm Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aagca3278H] Appearances By: Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Miraj D Shah, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 14, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: All The Captioned Appeals Have Been Preferred By The Assessee For The Assessment Years 2010-11, 2011-12 & 2012-13 Against Separate Orders Of The Commissioner Of Income Tax (Appeals)-26, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since, The Issues Involved In All The Appeals Are Common & Relate To The Same Search Operation, Therefore, These Appeals Have Been Heard Together & Are

Section 132Section 139(1)Section 143(1)Section 143(2)Section 153ASection 250Section 68Section 69C

DCIT, CC -2(1), Kolkata vs. Amanat Trade Comm Pvt Ltd, Kolkata

In the result, all the captioned appeals of the revenue are dismissed

ITA 1309/KOL/2025[2010-11]Status: DisposedITAT Kolkata27 Oct 2025AY 2010-11

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1290, 1307 & 1308/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Frankdeal Tradcom Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aabcf1099A] Ita Nos.1309, 1310 & 1311/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Amanat Trade Comm Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aagca3278H] Appearances By: Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Miraj D Shah, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 14, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: All The Captioned Appeals Have Been Preferred By The Assessee For The Assessment Years 2010-11, 2011-12 & 2012-13 Against Separate Orders Of The Commissioner Of Income Tax (Appeals)-26, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since, The Issues Involved In All The Appeals Are Common & Relate To The Same Search Operation, Therefore, These Appeals Have Been Heard Together & Are

Section 132Section 139(1)Section 143(1)Section 143(2)Section 153ASection 250Section 68Section 69C

DCIT, CC-2(1), Kolkata vs. Frankdeal Tracom Pvt Ltd, Kolkata

In the result, all the captioned appeals of the revenue are dismissed

ITA 1308/KOL/2025[2012-13]Status: DisposedITAT Kolkata27 Oct 2025AY 2012-13

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1290, 1307 & 1308/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Frankdeal Tradcom Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aabcf1099A] Ita Nos.1309, 1310 & 1311/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Amanat Trade Comm Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aagca3278H] Appearances By: Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Miraj D Shah, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 14, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: All The Captioned Appeals Have Been Preferred By The Assessee For The Assessment Years 2010-11, 2011-12 & 2012-13 Against Separate Orders Of The Commissioner Of Income Tax (Appeals)-26, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since, The Issues Involved In All The Appeals Are Common & Relate To The Same Search Operation, Therefore, These Appeals Have Been Heard Together & Are

Section 132Section 139(1)Section 143(1)Section 143(2)Section 153ASection 250Section 68Section 69C

DCIT, CC-2(1), Kolkata vs. Frankdeal Tracom Pvt. Ltd., Kolkata

In the result, all the captioned appeals of the revenue are dismissed

ITA 1307/KOL/2025[2011-12]Status: DisposedITAT Kolkata27 Oct 2025AY 2011-12

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1290, 1307 & 1308/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Frankdeal Tradcom Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aabcf1099A] Ita Nos.1309, 1310 & 1311/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Amanat Trade Comm Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aagca3278H] Appearances By: Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Miraj D Shah, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 14, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: All The Captioned Appeals Have Been Preferred By The Assessee For The Assessment Years 2010-11, 2011-12 & 2012-13 Against Separate Orders Of The Commissioner Of Income Tax (Appeals)-26, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since, The Issues Involved In All The Appeals Are Common & Relate To The Same Search Operation, Therefore, These Appeals Have Been Heard Together & Are

Section 132Section 139(1)Section 143(1)Section 143(2)Section 153ASection 250Section 68Section 69C

DCIT, CC-2(1), Kolkata vs. Frankdeal Tracom Pvt Ltd, Kolkata

In the result, all the captioned appeals of the revenue are dismissed

ITA 1290/KOL/2025[2010-11]Status: DisposedITAT Kolkata27 Oct 2025AY 2010-11

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyita Nos.1290, 1307 & 1308/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Frankdeal Tradcom Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aabcf1099A] Ita Nos.1309, 1310 & 1311/Kol/2025 Assessment Years: 2010-11, 2011-12 & 2012-13 Dcit, Cc-2(1), Kolkata.…………………………………………….…….……Appellant Vs. Amanat Trade Comm Pvt. Ltd..………………………...………...……...…..…..Respondent 6D, Shyamkunj, 12C Lord Sinha Road, Kol- 7. [Pan: Aagca3278H] Appearances By: Shri Raja Sengupta, Cit-Dr, Appeared On Behalf Of The Appellant. Shri Miraj D Shah, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 14, 2025 Date Of Pronouncing The Order : October 27, 2025 Order Per Pradip Kumar Choubey: All The Captioned Appeals Have Been Preferred By The Assessee For The Assessment Years 2010-11, 2011-12 & 2012-13 Against Separate Orders Of The Commissioner Of Income Tax (Appeals)-26, Kolkata [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) Respectively. Since, The Issues Involved In All The Appeals Are Common & Relate To The Same Search Operation, Therefore, These Appeals Have Been Heard Together & Are

Section 132Section 139(1)Section 143(1)Section 143(2)Section 153ASection 250Section 68Section 69C