Unexplained Cash Credits: Who bears the burden of proof?

Section 68 of the Income Tax Act, deals with unexplained credit whose nature and source cannot be satisfactorily explained by the assessee. Section 68 is an effective tool in the hands of the assessment authorities to prevent the conversion of black money into any other amount such as share premiums or share capital and escape … Continue reading Unexplained Cash Credits: Who bears the burden of proof?

Can share application money invested through cash be considered as undisclosed Income under section 68 of IT Act?

Case: DCIT v/s M-s Modern Dalkhola Flour Mills Pvt LTD, ITAT KOLKATA Listen to the case summary DCIT v/s M-s Modern Dalkhola Flour Mills Pvt LTD, ITAT KOLKATA here Facts: Share Application money along with premium was received from 11 parties.3 parties were corporate entities belonging to same group.8 parties were individuals, all relatives of the director.1 … Continue reading Can share application money invested through cash be considered as undisclosed Income under section 68 of IT Act?

Unexplained cash credits: 5 questions and their answers

Section 68 is one of the few sections in the Income Tax Act of 1961 which has largely remained unchanged. Apart from addition of provisos to cover corporate taxpayers, the purpose of the section has remained unchanged. So what does section 68 say? Amounts credited to an assessee are taxable unless the Act has specifically … Continue reading Unexplained cash credits: 5 questions and their answers