Section 69B of the Income Tax Act

Income-tax Act, 2025: s.104

Section 69B of the Income-tax Act, 1961 corresponds to section 104 (Unexplained asset) of the Income-tax Act, 2025.

Read section 104 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 69B is CIT v. Gujarat State Road Transport Corpn (41 Taxmann.com 100), cited in 540 of the 1,579 judgments on BharatTax that turn on this section.

Leading authorities on Section 69B

CIT v. Gujarat State Road Transport Corpn
41 Taxmann.com 100 · 2014 · High Court
540
citing judgments

Employees' contributions to provident fund or other welfare funds are deductible under section 36(1)(va) only if paid by the due date specified in the respective welfare fund enactments, and section 43B does not extend this period to the income tax return filing due date under section 139(1).

Sanjay Oilcake Industries v. CIT
316 ITR 274 · 2009 · High Court
460
citing judgments

In cases of alleged bogus or unverifiable purchases, rather than disallowing the entire purchase value, a reasonable profit element or a proportionate percentage of the purchases should be added back to the assessee's income.

CIT v. Odeon Builders Pvt. ltd.
418 ITR 315 · 2019 · Supreme Court
408
citing judgments

Income tax additions cannot be sustained merely on the basis of uncorroborated statements or allegations. The Revenue must bring on record sufficient material and allow the assessee to produce evidence to prove such additions.

Canara Housing Development Co. v. DCIT
49 Taxmann.com 98 · 2014 · High Court
283
citing judgments

Proceedings under Section 153A of the Income Tax Act are not confined solely to incriminating material found during a search, and the Assessing Officer can assess total income for the relevant years.

TM) Vishnu Jaiswal v. CIT
357 ITR 146 · 2013 · High Court
272
citing judgments

If the Assessing Officer has not conducted any investigation and thus has not discharged their burden of proof, any addition made by the AO is unsustainable and must be deleted.

CIT v. Ashwani Gupta
322 ITR 396 · 2010 · High Court
262
citing judgments

Proceedings become fatal if principles of natural justice are violated, such as when seized material is not provided to the assessee or cross-examination of a person whose statement the Assessing Officer relies upon is denied.

CIT v. Vijay M. Mistry Construction Ltd.
355 ITR 498 · 2013 · High Court
252
citing judgments

In cases of alleged bogus or hawala purchases where the existence of transactions is not entirely denied, only the profit element embedded in such purchases, and not the entire purchase price, can be added to the assessee's income. The focus is on determining a reasonable profit percentage for such additions.

CIT v. Girish Chaudhary
296 ITR 619 · 2008 · High Court
175
citing judgments

Additions to income cannot be made solely based on "dumb documents" or vague loose papers seized during a search that merely indicate rates without specific corroborative material linking them to the assessee's unaccounted transactions. The presumption under Section 292C may not apply to such documents.

Sargam Cinema v. CIT
328 ITR 513 · 2010 · Supreme Court
172
citing judgments

For an Assessing Officer to make a valid reference to the Departmental Valuation Officer for the estimation of the cost of construction, the books of accounts must first be rejected under Section 145(3) of the Income-tax Act.

CIT v. Shivakami Co. (P.) Ltd.
159 ITR 71 · 1986 · Supreme Court
133
citing judgments

The burden of proving an understatement of consideration or the receipt of 'on-money' lies solely with the Revenue, which must provide cogent evidence of actual receipt of higher consideration, beyond mere estimates or suspicion. Additions cannot be made based on assumptions like differences from circle rates without such evidence.

Judgments on Section 69B

Deputy Commissioner of Income Tax (Central Circle)-1(4), Ahmedabad vs. Deep Infraprojects LLP, Ahmedabad

In the result, the appeal filed by the Revenue is dismissed

ITA 1561/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad29 Jan 2025AY 2021-22

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. No. 1561/Ahd/2024 ("नधा"रण वष" / Assessment Year : 2021-22) Deputy Commissioner Of Vs. Deep Infraprojects Llp 10Th Floorhouse, Income Tax Central Circle-1(4), Nr. Ambawadi Circle, Ahmedabad Ambawadi, Ahmedabad- 380006 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaqfd3530J (Appellant) .. (Respondent) अपीलाथ" ओर से /Appellant By : Shri Vartik Choksi, Shri Dhrunal Bhatt & Shri Gulab Thakor, A.Rs. ""यथ" क" ओर से/Respondent By : Shri Arvind Kumar, Cit. Dr 22/01/2025 Date Of Hearing Date Of Pronouncement 29/01/2025 O R D E R Per Shri Narendra Prasad Sinha, Am: This Appeal Is Filed By The Revenue Against The Order Of The Commissioner Of Income Tax (Appeals)- 11, Ahmedabad (In Short ‘The Cit(A)’), Dated 05.07.2024 For The Assessment Year 2021-22. 2. The Brief Facts Of The Case Are That The Assessee Had Purchased A Land Situated At Ambli Road, Ahmedabad During The Year For A Consideration Of Rs.75 Crore, As Per The Executed Sale Deed. In The Course Of Search Conducted At The Residential Premises Of One Shri Divyang Vyas, Certain Documents Were Found, As Per Which It Transpired That Certain On-Money Was Paid In The Purchase Transaction Of This Land. In The Course Of

For Appellant: Shri Vartik Choksi, Shri DhrunalFor Respondent: Shri Arvind Kumar, CIT. DR
Section 69B