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

Income Tax Officer-2, Raigarh vs. Shri Vinod Kumar Jain, Jashpur

In the result appeal of the revenue is dismissed

ITA 96/RPR/2018[2014-15]Status: DisposedITAT Raipur31 Oct 2022AY 2014-15

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.96/Rpr/2018 ("नधा"रण वष" / Assessment Year :2014-2015) Ito-2, Raigargh Vs Shri Vinod Kumar Jain, College Road, Dist : Jashpur Pan No. : Agepj 9793 M (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee By : Shri R.B.Doshi, Ca राज"व क" ओर से /Revenue By : Shri Debashish Lahiri, Cit-Dr सुनवाई क" तार"ख / Date Of Hearing : 02/08/2022 घोषणा क" तार"ख/Date Of Pronouncement : 31 /10 /2022 आदेश / O R D E R Per Arun Khodpia, Am : This Appeal Is Filed By The Revenue Against The Order Passed By The Cit(A)-1, Bilaspur, Dated 06.03.2018, On The Following Ground :- 1. Whether In The Facts & Circumstance & In Law, The Ld. Cit(A) Is Justified In Deleting The Addition Of Rs. 6,43,00,000/- Made By The Ao U/S 68 Of The Act? 2. Whether On The Facts & Circumstances Of The Case & On The Points Of The Law Ld. Cit(A) Was Justified In Deleting The Addition Of Rs. 6,43,00,000/- Made By The Ao By Ignoring The Facts As Brought On Record By The Ao That The Assessee Failed To Prove The Identity Of The Creditor, Genuineness Of The Transaction & Creditworthiness Of The Investor As Per The Parameters Of The Legal Provisions U/S 68 Of The Act? 3. Whether In The Facts & Circumstances & In Law, The Ld. Cit(A) Is Justified In Deleting The Addition Of Rs. 6,43,00,000/- Made By The Ao U/S 68 Of The Act By Ignoring The Decisions In The Following Lead Cases:- (I) Mcdowell & Company Ltd Vs Commercial Tax Officer (1985) 22 Taxman 11 (Sc). (Ii) M/S Raj Mandir Estates Pvt Ltd Vs Pcit-Iii, Kolkata (Slp No. 22566-22567) Dated 09.01.2017. (Iii) Cit Vs Precision Finance Pvt Ltd., 208 Itr 465(Cal).

For Appellant: Shri R.B.Doshi, CAFor Respondent: Shri Debashish Lahiri, CIT-DR
Section 143(3)Section 68

Income Tax Officer, Ward-3(4), Raipur vs. Shri Anil Kumar Panthi, Raipur

In the result, the appeal of revenue is allowed for statistical purposes and cross objection of the assessee stands dismissed

ITA 236/RPR/2017[2012-13]Status: DisposedITAT Raipur31 Oct 2022AY 2012-13

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अऩीऱ सं./Ita No.236/Rpr/2017 (ननधाारण वषा / Assessment Year :2012-2013) Ito-3 (4), Raipur Vs Shri Anil Kumar Panthi, Shop No.23, G.E.Road, Medical Complex, Raipur Pan No. : Aeqpp 5835 A (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. & Cross Objection No.09/Rpr/2017 (Arising Out Of Ita No.236/Rpr/2017) (ननधाारण वषा / Assessment Year :2012-2013) Shri Anil Kumar Panthi, Vs Acit-4(1), Raipur Shop No.23, G.E.Road, Medical Complex, Raipur Pan No. : Aeqpp 5835 A (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee By : Shri G.S.Agrawal, Ca राजस्व की ओर से /Revenue By : Shri G.N.Singh, Sr. Dr सुनिाई की तारीख / Date Of Hearing : 25/07/2022 घोषणा की तारीख/Date Of Pronouncement : 31/10/2022 आदेश / O R D E R Per Arun Khodpia, Am : The Revenue Has Filed Appeal Against The Order Passed By The Cit(A)-I, Raipur, Dated 17.07.2017 For The Assessment Year 2012-2013. The Assessee Has Also Filed Cross Objection To The Appeal Filed By The Revenue. 2. The Revenue In Its Appeal Has Taken The Following Grounds:- 1. “Whether On The Facts & Circumstances Of The Case & In Law, The Ld. Cit(A) Was Justified In Deleting The Addition Of Rs.2,35,21,935/- Made By The Ao On Account Of Unexplained Unsecured Loan Without Appreciating The Facts On Record?” 2. “Whether Cit(A) Committed An Error In Law In Not Appreciating The Purport Of Provisions Of Sections 68 Of The Income-Tax Act

For Appellant: Shri G.S.Agrawal, CAFor Respondent: Shri G.N.Singh, Sr. DR
Section 250(4)Section 68

Prashant Pratap Ahir, Pune vs. Assistant Commissioner of Income-Tax, Circle - 10, Pune

ITA 1954/PUN/2018[2013-14]Status: DisposedITAT Pune31 Oct 2022AY 2013-14

Bench: Shri S.S. Viswanethra Ravi & Shri G. D. Padmahshaliआयकर अपीऱ सं. / Ita No.1954/Pun/2018 निर्धारण वर्ा / Assessment Year : 2013-2014 Prashant Pratap Ahir At – Bunglow No.8, Mahindra Society, 121, Nagar Road, Pune – 411006 . . . . . . . अपीऱधर्थी / Appellant Pan:Aefpa6461E बनाम / V/S. Asst. Commissioner Of Income Tax, . . . . . . . . प्रत्यर्थी / Respondent Circle – 10, Pune द्वारा / Appearances Assessee By : Shri Prashant Pratap Ahir Revenue By : Shri Ramnath P Murkunde सुनवाई की तारीख / Date Of Conclusive Hearing :12/10/2022 घोषणा की तारीख / Date Of Pronouncement : 12/10/2022 आदेश / Order Per G. D. Padmahshali, Am; This Appeal Challenges The Order Of Commissioner Of Income Tax (Appeals)-13, Pune [For Short “Cit(A)”] Dt. 07/08/2018 Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which Soared Out Of Assessment Order Dt. 21/12/2016 Passed U/S 143(3) R.W.S. 147 By The Asst. Commissioner Of Income Tax, Circle-10, Pune [For Short “Ao”] For Assessment Year [For Short “Ay”] 2013-14. Itat-Pune Page 1 Of 9

For Appellant: Shri Prashant Pratap AhirFor Respondent: Shri Ramnath P Murkunde
Section 142(1)Section 143(3)Section 147Section 148Section 250Section 68