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

Assam Timber Traders, Jaipur vs. Pr.CIT-1, Jaipur

In the result, this appeal of the assessee is allowed for statistical purposes only

ITA 17/JPR/2021[2016-17]Status: DisposedITAT Jaipur08 Sept 2021AY 2016-17

Bench: Shri Sandeep Gosain, Jm & Shri Vikram Singh Yadav, Am Vk;Dj Vihy La-@Ita No. 17/Jp/2021 Assessment Year: 2016-17 Assam Timber Traders, Cuke Pr.Cit-1 Vs. D-8, Kabir Marg, Bani Park, Jaipur. Jaipur. Pan No.: Aacfa 8222 C Vihykfkhz@Appellant Izr;Fkhz@Respondent Fu/Kzkfjrh Dh Vksj Ls@ Assessee By : Shri S.L. Poddar (Adv) Jktlo Dh Vksj Ls@ Revenue By : Shri B.K. Gupta (Pr.Cit-Dr) Lquokbz Dh Rkjh[K@ Date Of Hearing : 17/08/2021 Mn?Kks"K.Kk Dh Rkjh[K@ Date Of Pronouncement : 08/09/2021 Vkns'K@ Order Per: Sandeep Gosain, J.M. The Present Appeal Has Been Filed By The Assessee Against The Order Of The Ld. Pr.Cit-1, Jaipur Dated 30/03/2021 Passed U/S 263 Of The Income Tax Act, 1961 (In Short, The Act) For The A.Y. 2016-17. The Assessee Has Raised Following Grounds Of Appeal: “1. Under The Facts & Circumstances Of The Case The Learned Pr.Cit- 1, Jaipur Erred In Passing The Order U/S 263 Of The It Act 1961 Which Is Void Ab-Initio Deserves To Be Quashed. 2. Under The Facts & Circumstances Of The Case The Learned Principal Commissioner Of Income Tax Has Erred & Passing The Order U/S 263 Of Income Tax Act, 1961 On The Grounds Which Are Not Prejudicial To The Interest Of The Revenue Or Erroneous.

For Appellant: Shri S.L. Poddar (Adv)For Respondent: Shri B.K. Gupta (Pr.CIT-DR)
Section 115Section 115BSection 143(3)Section 236Section 263Section 40Section 69