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

Yatinbhai Pramukhbhai Patel, Ahmedabad vs. The ACIT, Circle-3(3), Ahmedabad

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

ITA 434/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad09 Jan 2025AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita No.434/Ahd/2024 निर्धारण वर्ष / Assessment Year : 2017-18 Yatinbhai Pramukhbhai Patel The Acit बनाम / V/S. Circle-3(3) 2, Parivar Society Part-2 Near Premchand Nagar Row-House, Ahmedabad – 380 015 Ahmedabad – 380 015 स्थायी लेखा सं./Pan: Adrpp 8846 K अपीलार्थी/ (Appellant) प्रत्यर्थी/ (Respondent) Assessee By : Shri Mehul Thakkar, Ar Revenue By : Shri Rignesh Das, Sr.Dr सुनवाई की तारीख / Date Of Hearing : 07/01/2025 घोषणा की तारीख / Date Of Pronouncement: 09/01/2025 आदेश/Order Per Makarand V. Mahadeokar, Am: This Appeal By The Assessee Arises Out Of The Order Dated 09/01/2024 Passed By The Commissioner Of Income Tax (Appeal), National Faceless Appeal Centre, Delhi (Nfac) [Hereinafter Referred To As “Cit(A)"] Confirming The Order Passed By The Assessing Officer (Hereinafter Referred To As "Ao") Under Section 144 Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") For The Assessment Year 2017-18.

For Appellant: Shri Mehul Thakkar, ARFor Respondent: Shri Rignesh Das, Sr.DR
Section 142(1)Section 143(2)Section 144Section 68

Income Tax Officer, Chennai vs. Sanguine Media Limited, Chennai

The appeal stand allowed for statistical purposes

ITA 480/CHNY/2024[2011]Status: DisposedITAT Chennai09 Jan 2025

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.1594/Chny/2023 (िनधा9रण वष9 / Assessment Year: 2011-12) M/S. Sanguine Media Limited Ito बनाम/ Plot No.135A, 1St Floor, Non-Corporate Ward-20(5) Chandran Nagar Main Road, Chennai Vs. Chrompet, Chennai-600 044. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaecs-2217-C (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2. आयकरअपील सं./ Ita No.480/Chny/2024 (िनधा9रण वष9 / Assessment Year: 2011-12) Ito M/S. Sanguine Media Limited बनाम/ Plot No.135A, 1St Floor, Non-Corporate Ward-10(6) Chennai Chandran Nagar Main Road, Vs. Chrompet, Chennai-600 044. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaecs-2217-C (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" की ओर से/ Assessee By : Shri Neeraj Mangla (Ca) (Virtual)- Ld.Ar " थ" की ओर से/Revenue By : Shri Nilay Baran Som (Cit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 10-12-2024 घोषणा की तारीख /Date Of Pronouncement : 09-01-2025 आदेश / O R D E R

For Appellant: Shri Neeraj Mangla (CA) (Virtual)- Ld.ARFor Respondent: Shri Nilay Baran Som (CIT)-Ld. DR
Section 147Section 271(1)(c)Section 68

Sanguine Media Limited, Chennai vs. ITO, Chennai

The appeal stand allowed for statistical purposes

ITA 1594/CHNY/2023[2011-12]Status: DisposedITAT Chennai09 Jan 2025AY 2011-12

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं./ Ita No.1594/Chny/2023 (िनधा9रण वष9 / Assessment Year: 2011-12) M/S. Sanguine Media Limited Ito बनाम/ Plot No.135A, 1St Floor, Non-Corporate Ward-20(5) Chandran Nagar Main Road, Chennai Vs. Chrompet, Chennai-600 044. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaecs-2217-C (अपीलाथ"/Appellant) : (" थ" / Respondent) & 2. आयकरअपील सं./ Ita No.480/Chny/2024 (िनधा9रण वष9 / Assessment Year: 2011-12) Ito M/S. Sanguine Media Limited बनाम/ Plot No.135A, 1St Floor, Non-Corporate Ward-10(6) Chennai Chandran Nagar Main Road, Vs. Chrompet, Chennai-600 044. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaecs-2217-C (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" की ओर से/ Assessee By : Shri Neeraj Mangla (Ca) (Virtual)- Ld.Ar " थ" की ओर से/Revenue By : Shri Nilay Baran Som (Cit)-Ld. Dr सुनवाई की तारीख/Date Of Hearing : 10-12-2024 घोषणा की तारीख /Date Of Pronouncement : 09-01-2025 आदेश / O R D E R

For Appellant: Shri Neeraj Mangla (CA) (Virtual)- Ld.ARFor Respondent: Shri Nilay Baran Som (CIT)-Ld. DR
Section 147Section 271(1)(c)Section 68