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

Shankar Prasad, Nalanda vs. Assessment Unit, Income Tax Department, Delhi

The appeal of the assessee is allowed for statistical purposes

ITA 4/PAT/2025[2018-19]Status: DisposedITAT Patna07 Feb 2025AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. No.04/Pat/2025 Assessment Year: 2018-19 Shankar Prasad…………………………………………………..………….……Appellant S/O Yogendra Prasad, Vill-Asthawan, P.O – Asthawan, Biharsharif, Nalanda, Bihar-803107. [Pan: Avnpp3389B] Vs. Assessment Unit, Income Tax Department ……………….........……...…..…..Respondent Appearances By: Shri A. K. Rastogi, Sr. Advocate, Appeared On Behalf Of The Appellant. Shri Ashwani Kr. Singal, Jcit - Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 06, 2025 Date Of Pronouncing The Order : February 07, 2025 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against An Order Dated 22.11.2024 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Brief Facts Of The Case Are That The Assessee Is An Individual & Did Not File His Return Of Income For The Relevant Assessment Year. The Assessing Officer Got Information That The Assessee Had Made Cash Withdrawals Of Rs.1,37,13,000/- From Current Account Maintained With Canara Bank During F.Y 2017-18 & The Assessee Did Not File Any Itr. Therefore, The Assessing Officer After Obtaining Approval From The Competent Authority Issued Notice U/S 147 R.W.S 148A Of The Act Through Email. In Response To The Notice, The Assessee Filed His Return After A

Section 139(1)Section 142(1)Section 147Section 148Section 250Section 250(6)Section 68

Viiking Media and Entertainment Pvt. Ltd, Mumbai vs. Deputy Commissioner of Income Tax, Central Circle 2(2), Mumbai

In the result, the appeal filed by the assessee is allowed for statistical purpose

ITA 6034/MUM/2024[2017-18]Status: DisposedITAT Mumbai07 Feb 2025AY 2017-18

Bench: Ms. Kavitha Rajagopal, Jm & Shri. Girish Agarwal, Am Viiking Media & Entertainment Deputy Commissioner Of Income Pvt. Ltd. Tax, Central Circle 2(2), Mumbai 604-605, 6Th Floor, Gateway Plaza, 604-605, 6Th Floor, Gateway Plaza, Vs. Central Circle 2(2), Mumbai – 400076. Central Circle 2(2), Mumbai – 400076. Pan/Gir No. Aaacj9884E (Assessee) : (Respondent) Assessee By : Shri. Aakash Kumar Respondent By : Shri. Ajay Singh, Sr Dr Date Of Hearing : 06.02.2025 Date Of Pronouncement : 07.02.2025 O R D E R Per Kavitha Rajagopal, J M: This Appeal Has Been Filed By The Assessee, Challenging The Ex Parte Order Of The Learned Commissioner Of Income Tax (Appeals) 52, Mumbai (‘Ld. Cit(A) For Short), National Faceless Appeal Centre (‘Nfac’ For Short) Passed U/S.250 Of The Income Tax Act, 1961 (‘The Act'), Pertaining To The Assessment Year (‘A.Y.’ For Short) 2017-18. 2. It Is Observed That The Present Appeal Has Been Filed With A Delay Of 16 Days For Which The Accountant Of The Ld.Ar Appearing For The Assessee Has Filed Application Dated 06.02.2025 Along With An Affidavit For Condoning The Said Delay. Upon Perusal Of The Same, We Deem It Fit To Hold That The Assessee Had “Sufficient Cause” For The Said Delay M/S. Viiking Media & Entertainment Pvt. Ltd. & Therefore We Are Inclined To Condone The Delay Caused By The Assessee In Filing The Present Appeal. Delay Condoned.

For Appellant: Shri. Aakash KumarFor Respondent: Shri. Ajay Singh, SR DR
Section 115JSection 143(2)Section 143(3)Section 250Section 36(1)(va)Section 68