Article on Section 68 with recent development in Case Laws in Bombay High Court in case of Pr. CIT vs Alag Securities Pvt Ltd. vide ITA No. 1512 of 2017 dated June 12, 2020
UNXEPLAINED CASH CREDITS, INVESTMENT, MONEY UNDER PROVISIONS OF INCOME TAX ACT, 1961
CASH CREDIT [SECTION 68] define as where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year.
As per the provisions of section 68 amount credited in book and the assessee failed to explained the nature and source of fund and the explanation offered by assessee is not satisfactory in the opinion of the Assessing Officer. The amount so credited may charged to income-tax as income of the assessee of that previous year.
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