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

Sundeep Sethi, Kolkata vs. I.T.O., Ward - 44(2), Kolkata

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

ITA 1248/KOL/2025[2015-2016]Status: DisposedITAT Kolkata11 Aug 2025AY 2015-2016

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. No.1248/Kol/2025 Assessment Year: 2015-16 Sundeep Sethi…….……………………………...………………..….……….Appellant 164, M. G. Road, Burra Bazar, Kol-7. [Pan: Alaps7114C] Vs. Ito, Ward-44(2), Kolkata ………..........................……........……...…..…..Respondent Appearances By: Shri Siddharth Agarwal, Advocate, Appeared On Behalf Of The Assessee. Shri Sima Das Biswas, Jcit-Sr.Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : August 11, 2025 Date Of Pronouncing The Order : August 11, 2025 Order Per Sonjoy Sarma: This Appeal Filed By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi, Dated 20.03.2024 For The Assessment Year 2015–16. 2. At The Outset The Ld. Ar Stated That There Is A Delay Of 374 Days In Filing The Present Appeal. The Assessee Has Filed A Petition For Condonation Of Delay Citing Reasonable Cause For The Belated Filing. We After Considering The Submissions & Materials On Record, We Are Satisfied That The Assessee Was Prevented By Reasonable Cause In Filing The Appeal Within The Prescribed Time. Accordingly, The Delay Is Condoned & The Appeal Is Admitted For Adjudication On Merits. 3. Brief Facts Of The Case Are That The Assessee Is An Individual & Filed Return Of Income For The Assessment Year 2015–16 Declaring Total Income Of Rs.12,79,510/-. Notice U/S 148 Of The Act Was Issued To The Assessee For The Reasons That The Assessee In Ei Schedule Of The Said Return Has Claimed Exempt Income Under The Head ‘Long Term Capital Gains’ From Transaction On Which Securities Transaction Tax Is Paid. In

Section 148Section 43(2)Section 68

Pramod Lakra, Deputy Commissioner of Income Tax, Circle-11(1), Kolkata vs. Trinity Vintrade Private Limited, Kolkata

The appeal of the revenue is dismissed

ITA 1001/KOL/2025[2013-14]Status: DisposedITAT Kolkata11 Aug 2025AY 2013-14

Bench: Shri Sonjoy Sarma & Shri Sanjay Awasthii.T.A. No.1001/Kol/2025 Assessment Year: 2013-14 Dcit, Circle-11(1), Kolkata ………………...………………..….……….Appellant Vs. Trinity Vintrade Pvt. Ltd.………..........................…….........……...…..…..Respondent 2Nd Floor, Room No.22, 22 Canning Street, Kol-1. [Pan: Aadct2156P] Appearances By: Smt. Sima Das Biswas, Jcit, Sr. Dr, Appeared On Behalf Of The Assessee. Shri Miraj D. Shah, Ar, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : August 11, 2025 Date Of Pronouncing The Order : August 11, 2025 Order Per Sonjoy Sarma: This Appeal Filed By The Revenue Is Directed Against The Order Of The National Faceless Appeal Centre (Nfac), Delhi Dated 26.12.2024 For The Assessment Year 2013–14. 2. At The Outset, We Note That There Is A Delay Of 69 Days In Filing The Present Appeal. The Revenue Has Filed A Petition For Condonation Of Delay Citing Reasonable Cause For The Belated Filing. We, After Considering The Submissions & Materials On Record, Satisfy That The Revenue Was Prevented By Reasonable Cause In Filing The Appeal Within The Prescribed Time. Accordingly, The Delay Is Condoned & The Appeal Is Admitted For Adjudication On Merits. 3. Brief Facts Of The Case Are That The Assessee Filed Its Return Of Income For The Assessment Year 2013–14 By Declaring Total Income Of Rs.70,440/-. The Case Of The Assessee Was Reopened U/S 147 Of The Act By Issuing Notice U/S 148 Of The Act For The Reason That A Sum Of Rs.8,00,056/- Was Transferred From One M/S Purayita Vanija Pvt. Ltd. To The Assessee’S Bank Account During The Year & Found That The Alleged

Section 143(2)Section 147Section 148Section 68