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

Akansha Jain, Delhi vs. ITO Ward-57(3), New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 8785/DEL/2019[2014-15]Status: DisposedITAT Delhi23 Feb 2023AY 2014-15

Bench: Shri C.M. Garg & Dr. B.R.R. Kumarassessment Year: 2014-15 Akansha Jain, Vs. Ito, C-2/277, Yamuna Vihar, Ward-57(3), Delhi -110 053. New Delhi. Pan: Akkpj6488R (Appellant) (Respondent) Assessee By : Shri Salil Agarwal, Advocate & Shri Shailesh Gupta, Advocate Revenue By : Shri Kanav Bali, Sr. Dr Date Of Hearing : 16.02.2023 Date Of Pronouncement : 23.02.2023 Order Per C.M. Garg: This Appeal Filed By The Assessee Is Directed Against The Order Dated 12.07.2019 Of The Cit(A)-37, New Delhi, Relating To Assessment Year 2014-15. 2. The Grounds Of Appeal Taken By The Assessee Read As Under:- “1. The Ld Cit(A) Has Erred In Confirming The Addition Of Rs.85,00,000/- On Account Of Alleged Deemed Income U/S 69B Of The Income Tax Act, 1961. 2 That The Ld. Ao As Well As Ld Cit(A) Had Made The Addition Without Considering The Submissions As Well As Evidences Furnished By The Appellant. 3 That The Ld. Ao & Ld Cit(A) Has Erred In Law As Well As On Facts In Not Providing The Statement As Well As Cross Examination Of Sh Satvir Singh On Which Ld Ao & Ld Cit(A) Has Relied For Making Addition Of Rs. 85,00,000/- On Account Of Alleged Deemed Income U/S 69B Of The Income Tax Act, 1961. 4 That The Ld. Ao & Ld Cit(A) Has Erred In Law As Well As On Facts In Ignoring The Fact That The Circle Rate Of The Land Is Much Lower Than The Purchase Price Amounting Rs.15,00,000/- & Also Ignored The Fact That The Title Of The Land Is Not Clear. 5 The Addition Of Rs. 85,00,000/- Made By The Ld Ao As Well As Ld Cit(A) Is Erroneous & Arbitrary And, Therefore , The Addition Made Is Liable To Be Deleted. 6 That The Appellant Craves To Add, Amend, Alter, Vary And/Or Withdraw Or Rescind All Or Any Of The Ground Of Appeal On Or Before The Final Hearing.“

For Appellant: Shri Salil Agarwal, Advocate &For Respondent: Shri Kanav Bali, Sr. DR
Section 69B