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Commentary
Amended by The Finance Act, 2018
Search :
42 Records 
CHAPTER 1 SCHEME OF TAXATION OF UNDISCLOSED INCOME COVERED BY SECTIONS 68 TO 69D
1.1 Taxation of unexplained amounts under Sections 68 to 69D at flat rate without allowing any deductions/threshold exemption limit - Section 115BBE
1.2 Whether Section 115BBE would cover "undisclosed asset located outside India"
1.3 Prohibition of Benami Property Transactions Act, 1988
1.4 Summary - Scheme of Section 115BBE
CHAPTER 2 VOLUNTARY DISCLOSURE OF UNDISCLOSED INCOME
2.1 How and where make voluntary disclosure of deemed income u/s 115BBE in ITR 2, ITR 3, ITR 5, ITR 6, ITR 7
2.2 How to avail on tap voluntary disclosure scheme where no books of account are maintained
2.3 How to avail the on-tap Voluntary Disclosure Scheme where books of account are maintained
2.4 Whether TDS Credit in form 26AS will be adjusted towards the 77.25%1
2.5 Whether profits of illegal activity or illegal trade or corruption proceeds or narcotics drug trade or benami can be disclosed
2.6 What if there is a reassessment notice or notice under Section 142 or raid when assessee is contemplating a voluntary disclosure
2.7 What is there is a raid or survey the very next day after assessee pays 77.25%1 on the amount he proposes to disclose in current ITR
2.8 If there is any difference in amount of undisclosed income determined by AO and amount disclosed, can penalty be invoked
2.9 Whether assessee disclosing undisclosed income in the form of jewellery would be liable to wealth tax of past years
2.10 Will source be asked for amounts disclosed
2.11 What happens to Section 270A Is it reduced to a dead letter
2.12 Whether year in which income arose needs to be proven
2.13 Whether any interest under Section 234A or 234B for past periods is payable in respect of disclosures under the scheme
2.14 Will disclosure under section 115BBE in ITR be of any help in defending cases under anti-corruption law or other criminal laws
CHAPTER 3 DETECTION OF UNDISCLOSED INCOME BY DEPARTMENT
3.1 Where undisclosed income detected otherwise than by search (IT RAIDS)
3.2 Where undisclosed income is detected by search (IT RAIDS)
CHAPTER 4 CASH CREDITS UNDER SECTION 68
4.1 Cash credits (Section 68)
4.2 Assessee has maintained 'books'
4.3 Credit of sum of money in the books of assessee
4.4 Assessee bound to offer satisfactory explanation to AO regarding the credits in his books
4.5 Addition not mandatory if assessee offers no explanation/offers unsatisfactory explanation
4.6 Is AO bound to prove that unexplained credit is from a particular source
4.7 Where entry stands on the name of a person other than the assessee
4.8 Burden of proof on the assessee
4.9 Explanation that the source of cash credit is intangible additions made
4.10 Where creditor declines that he has any transaction with assessee
4.11 Explanation that credit represents sales proceeds of truck
4.12 Where summons issued to creditor is returned unserved
4.13 Explanation that credit represents income from horse racing
4.14 Confirmatory letters from cash creditors
4.15 No bar on assessee offering an alternative explanation
4.16 Inability of assessee to produce creditors
4.17 Explanation that cash credits were from sale of gold
4.18 Credit owned up by members of assessee AOP
4.19 AO not issuing summons to creditor despite assessee's request
4.20 Obligation to secure presence of creditors before AO
4.21 Where creditor produced before AO but his name neither disclosed in books nor his debt disclosed in balance sheet
4.22 Where creditors assessed by AOs and their accounts had been accepted by respective AOs
4.23 Cash credits explained as money provided by wife
4.24 Overseas creditor not produced by assessee for examination
4.25 Where confirmation letters and affidavits of lenders filed with copies of assessment orders in credit allowed of TDS from interest paid to them
4.26 When assessee held to have discharged onus
4.27 Explanation that credits in capital account out of fixed deposits proceeds
4.28 Where creditor deposited money on different dates and thereafter withdrew certain moneys also leaving a debit balance
4.29 Explanation the credits represent proceeds of NSC and repayment from finance company
4.30 Section 68 makes no distinction between a banking concern and non-banking concern
4.31 Limited applicability of section 68 to non-resident assessees
4.32 Credits to which section 68 is commonly applied
4.33 Distinction between sections 68 and 69
4.34 Section 68 vis-a-vis section 69D
4.35 Section 132 vis-a-vis section 68
4.36 Unexplained cash credits u/s 68 vis-a-vis benami transaction
CHAPTER 5 SHARE APPLICATION MONEY/SHARE CAPITAL/ SHARE PREMIUM IN CASE OF CLOSELY-HELD COMPANIES - WHEN UNEXPLAINED CASH CREDIT
5.1 Backdrop
5.2 Closely-held companies (i.e. companies in which public are not substantially interested)
5.3 Share premium received by closely held companies in excess of FMV taxable - Section 56
5.4 Method for determining fair market value for the purposes of Section 56(2)(viib)
5.5 Additional onus on closely-held companies regarding share capital received by closely-held cos. from residents-provisos to Section 68
5.6 Implications of first proviso to Section 68 and Section 56(2)(viib)
5.7 Certain issues regarding clause (viib)
CHAPTER 6 SHARE APPLICATION MONEY/SHARE CAPITAL/ SHARE PREMIUM IN CASE OF WIDELY-HELD COMPANIES - WHEN UNEXPLAINED CASH CREDIT
6.1 Widely-held companies
6.2 Onus in case of listed companies/widely-held companies
CHAPTER 7 WHETHER CAPITAL GAINS FROM SHARES TAXABLE U/S 68
7.1 Credits in books representing sales of shares
7.2 Where credits representing sale of listed shares held to be genuine
7.3 Off-market deals in shares through brokers who were members of CSE
7.4 Where credits representing sales proceeds of shares held to be bogus
CHAPTER 8 LOANS AND DEPOSITS - WHETHER UNEXPLAINED CASH CREDITS
8.1 Loans as means of 'balancing books' and explaining unaccounted income
8.2 Section 68 applicable to both commercial and non-commercial loans
8.3 Double taxation not allowed i.e. loan/deposit can't be added u/s 68 in the hands of both borrower & lender
8.4 Loan details in tax audit report - Whether amounts to satisfactory explanation
8.5 Lenders not traceable
8.6 Cases where onus held to be discharged
8.7 Points to be kept in mind while furnishing confirmation for unsecured loans etc.
CHAPTER 9 DEPOSITS FROM TENANTS - WHETHER AND WHEN UNEXPLAINED CASH CREDITS
9.1 How to discharge onus u/s 68 in respect of deposits received from tenants
CHAPTER 10 CREDITS IN FIRM’S BOOKS - WHEN UNEXPLAINED CASH CREDITS
10.1 No presumption that firm maintains books based on clause in partnership deed
10.2 Section 68 - Applicability to credits in firm's books in partner's name
10.3 First day first year credit in firm's books
10.4 When credits in firm's books assessable as firm's income under section 68
10.5 Whether same amount assessable in firm's hands u/s 68 and also in partner's hands u/s 69
CHAPTER 11 SUNDRY CREDITORS/TRADE CREDITORS - WHEN UNEXPLAINED CASH CREDITS
11.1 Where credit purchases and trading results accepted by AO as genuine, no additions u/s 68
11.2 Circulation transactions
CHAPTER 12 UNEXPLAINED INVESTMENTS UNDER SECTION 69
12.1 Section 69 - Constitutionally valid
12.2 Unexplained investments [Section 69]
12.3 Section 69 attracted only when assessee fails to explain source for the entire amount of investment
12.4 'investments'
12.5 investments disclosed in income-tax return in schedule AL - Whether exempt from section 69
12.6 'Undisclosed foreign asset' taxable under the black Money Tax Act, 2015 not under section 69
12.7/8 Word "assessee" does not include legal heirs
12.9 'books of account, if any'
12.10 Section 69 applicable to cash deposit in bank
12.11 For making addition u/s 69, no need for AO to expressly record rejection of assessee's books in his order
12.12 Duty of assessee to offer explanation
12.13 Assessee firm's investments in post office time deposits not shown in its balance sheet liable to be treated as undisclosed income u/s 69
12.14 instances in which explanation as to source of investments were held to be satisfactory
12.15 Legal fiction u/s 50C can't be a source of funds to explain an investment
12.16 instances where additions u/s 69 sustained
12.17 Photocopies/certified copies of documents admissible in iT proceedings
12.18 Value of investments deemed to be income
12.19 The word 'may' in section 69
12.20 Value of investment made in construction of property
12.21 Stamp duty value/FMV of house purchased exceeds consideration shown in sale deed
12.22 Addition in respect of undisclosed gold ornaments u/s 69
12.23 Additions for household articles in absence of bills/purchase invoices
12.24 Additions in 'no account' cases
12.25 NSCs and FDRs seized from assessee's divorced wife where divorce was by mutual consent
12.26 When ornaments seized not considered unexplained
12.27 Whether addition called for on grounds that cash book not updated
12.28 Additions in respect of difference in inventory prepared by search party and book stock
12.29 Additions for unaccounted stock of fabric
12.30 Additions in respect of imported camera not declared to customs
12.31 Addition in respect of 'on money' paid to builders
12.32 Stock additions for excess stock where such additions in sales tax assessments accepted by assessee
12.33 Gold in jeweller's premises belonging to customers
12.34 Additions on account of unrecorded purchases
12.35 Valuation of undisclosed stock for making additions
12.36 Additions in respect of old AC, TV, VCR and furniture at residence in absence of proof of cost of these items
12.37 Rough memoranda showing unrecorded sales of jewellery and inflation of purchases
12.38 Year of taxability of unexplained investments u/s 69
12.39 Additions in public issue
12.40 Sale agreement showing higher consideration than sale deed
12.41 Additions in respect of DDs purchased
12.42 Additions based on partner's admission before central excise authorities
12.43 Jewellery seized already declared in WT returns
12.44 Excess jewellery found explained as belonging to married daughter left behind
12.45 Surrender made during survey
12.46 Additions in stock due to non-recording in books due to accountant's carelessness
12.47 Additions in respect of purchases since suppliers not traceable - whether justified
12.48 Set off of excess stock against unaccounted profit from unaccounted sales
12.49 Justifiability of addition where stock figure accepted by sales tax deptt.
12.50 Non-maintenance of stock register
12.51 inadvertent non-entry or delayed entry in books of withdrawals from bank
12.52 Additions for suppressed production based on increased electricity consumption - not sustainable legally
12.53 Additions for FDRs in relatives name
12.54 Additions in respect of unaccounted sales
12.55 Joint savings account with mother
12.56 Where receipt from party credited in bank account exceeds gross receipts declared in return less TDS
12.57 Purchase of property through court is not unexplained investment u/s 69
CHAPTER 13 UNEXPLAINED INVESTMENT IN LOTTERY TICKETS
13.1 Lottery ticket investments - Purchase from prize winner instead of lottery ticket dealer
CHAPTER 14 ADDITIONS U/S 69 ON THE BASIS OF STOCK STATEMENTS SUBMITTED TO BANKS
14-1 Section 69 can also be invoked for unexplained investments in stock-in-trade
14.2 Pledge v. hypothecation of stocks to banks - differences in reliability of stock statements
14.3 Difference between stock statement given to bank dated 28th March and book stock of 31st March
14.4 Where part of stock in stock statement belonged to sister concern/partner/principal (consignor)
14.5 Difference in valuation
14.6 Difference between stock register and bank stock statements
14.7 Survey and stock surrender
14.8 Estimate v. physical stock difference
14.9 No difference in quantities, only in values
CHAPTER 15 UNEXPLAINED MONEY, BULLION, ETC. - SECTION 69A
15.1 Unexplained money etc. - Section 69A
15.2 Guidelines laid down by tribunal as to how section 69A is to be applied by AOs
15.3 Section 69A can be invoked even where income is estimated consequent to rejection of assessee's accounts
15.4 Ownership
15.5 'Other valuable article' - meaning of
15.6 Meaning of expression 'may'-addition by AO is discretionary
15.7 Non-recording in books of account
15.8 Burden of proof on assessee and not on his legal heirs
15.9 Addition to be based on AO's satisfaction, not that of some other authority
15.10 The word 'income' in section 69A
15.11 Relevant date for valuation of unexplained gold bars
15.12 No deduction of any expenditure for computing income under section 69A
15.13 FDRs in the name of untraceable third persons
15.14 Undisclosed sales
15.15 Excess cash explained as withdrawal from bank 140 km. away
15.16 Cash representing advance against sale of land-no addition
15.17 Cash belonging to relatives
15.18 Withdrawn from bank on 9 Nov. but entered in cash book on 12 Nov.
15.19 Withdrawals cover cash deposits but there is a time lag
15.20 Jewellery disclosed in wealth tax return
15.21 Cash explained as belonging to an organisation
15.22 Unexplained primary gold and US dollars found by ED during raid
15.23 Huge cash found by CBI at a raid on a Govt. Servant - Illegal gratification explained as loans from moneylenders
15.24 Income from sale of trees
15.25 Cash found by CBI at his premise explained by politician as belonging to his party
15.26 Acquittal under Section 124 of Bombay Police Act - Whether discharges onus under Section 69A
15.27 Ornaments said to be belonging to customers lying with assessee for periods as long as 1-15 years
15.28 Amount recovered from possession of another person
15.29 Agreement for sale of property - Consideration received repaid on cancellation
15.30 Contents of bank locker jointly in name of assessee and her mother
15.31 Money belongs to Pvt. Co. of which assessee and husband the only directors
15.32 Whether additions can be made based on photostat copy of slip found by CBI
15.33 Totalling mistake in return of income
15.34 Contents of locker in name of assessee's son
15.35 Savings made by wife out of money given household expenses
CHAPTER 16 AMOUNT OF INVESTMENTS ETC. NOT FULLY DISCLOSED IN BOOKS - SECTION 69B
16.1 Ingredients of section 69B
16.2 Section 69B vis-à-vis Sections 69 and 69A
16.3 Applicability of section 69B to investment in assets/articles not owned by assessee
16.4 Additions u/s 69B in respect of excess stock found during survey
16.5 Shares purchased at a price lower than quoted price and even its fair value
16.6 Stock pledged with bank disposed of during enquiry without informing AO
16.7 Applicability of section 50C for taxing undisclosed investments
16.8 Sale bills pre-dating purchase bills - Whether liable for tax under section 69B
CHAPTER 17 UNEXPLAINED EXPENDITURE ETC. - SECTION 69C
17.1 Ingredients of section 69C
17.2 Section 69C applies to any type of expenditure–be it personal or capital or revenue
17.3 AO has to establish existence or under-statement of expenditure incurred by assessee
CHAPTER 18 AMOUNT BORROWED OR REPAID ON HUNDISECTION 69D
18.1 Ingredients of section 69D
18.2 Distinction between Section 69D and Sections 269SS and 269ST
18.3 "Otherwise than through an account payee cheque" - Meaning of
18.4 Direct deposit in bank account of payee - Whether violation of Section 69D
18.5 HUNDI
18.6 Transactions between sister concerns - Whether attracts Section 69D
CHAPTER 19 DONEE-BASED TAXATION OF GIFTS LEGISLATIVE HISTORY
19.1 Donor based gift-tax under the Gift-tax Act, 1958
19.2 Donee-based gift-tax introduced by the Finance (No. 2) Act, 2004
19.3 Taxation Laws (Amendment) Act, 2006 substituted limit of Rs. 25000 per transaction with limit of Rs. 50,000 for entire year
19.4 Donee-based taxation extended to gifts in kind by Finance (No. 2) Act, 2009
19.5 Limited extension of donee-based taxation to firms and closely held companies by Finance Act, 2010
19.6 Donee-based taxation of gifts made universally applicable to all assessees including companies and firms
19.7 Salient features of new donee-based taxation regime applicable to gifts w.e.f. 01.04.2017 under clause (x)
19.8 Whether Section 68 or Section 56(2)(x) or both shall apply to taxation of gifts
CHAPTER 20 TAXABILITY OF GIFTS OF SUMS OF MONEY RECEIVED
20.1 Conditions for taxability of money gifts received for previous year 2017-18 and subsequent years
20.2 Whether gifts received by a politician within the threshold limits be taxed as profits and gains from business or profession under Section 28
CHAPTER 21 RECEIPT OF SUMS OF MONEY
21.1 Meaning of 'sum of money' used in Section 56(2)(x)(a)
21.2 Meaning of the word "receives" used in section 56(2)(x)
21.3 Whether receipt of gift of Indian Millennium Deposit Certificates issued by SBI along with gift deeds is receipt of sum of money without consideration
21.4 Modes of receipt of sum of money-should be by non-cash mode if it exceeds Rs. 2,00,000 to avoid double whammy of tax and penalty u/s 271DA
21.5 Date of receipt of gifts of money through cheque/DD
CHAPTER 22 SUM OF MONEY RECEIVED WITHOUT CONSIDERATION
22.1 'Consideration'
22.2 The phrase 'receives ..... any sum of money, without consi-deration' used in section 56(2)(x)(a)
22.3 Lottery prize - Whether amount or property received without consideration
22.4 Money prizes won in contest - Whether sums of money received without consideration
22.5 Whether money can be laundered by corrupt civil servants, etc., by showing amounts as gifts under Section 56(2)(x)(a)
22.6 Amount received in lieu of giving up right to contest will
CHAPTER 23 HOW TO COMPUTE THE LIMIT OF RS. 50,000
23.1 Limit of Rs. 50,000 for cash gifts
23.2 Clubbing of gifts of money received by a minor from non-relatives
CHAPTER 24 TAX-EXEMPT GIFTS
24.1 Cases in which gift is not taxable under section 56(2)(x)
24.2 Money or property received from a relative [clause (I)of the second proviso]
24.3 Sum of money or property received on the occasion of the marriage [clause (II) of the second proviso]
24.4 Sum of money or property received under a will or by way of inheritance [Clause (III)of the proviso]
24.5 Sum of money or property received in contemplation of the death of the payer or donor [clause (IV) of the proviso]
24.6 Sum of money or property received from a local authority [clause (V) of the proviso]
24.7 Sum of money or property received from charitable entity referred to in section 10(23C) [clause (VI)of the second proviso]
24.8 Sum of money or property received from any fund or trust or institution registered under section 12AA [clause (VII)of the proviso]
24.9 Sum of money/property received by any fund/trust/institution/ any university/other educational institution or any hospital or other medical institution referred to in sub-clause (iv)/(v)/(vi)/(via) of section 10(23C) [Clause (VIII) of the proviso]
24.10 Transactions not regarded as transfer under clause (i)/(vi)/(via)/(viaa)/(vib)/(vic)/(vica)/(vicb)/(vid)/(vii) of section 47 [Clause (IX) of the proviso]
24.11 Any money or property received from an individual by a trust created delayed the benefit of the relatives of the individual [Clause (X) of the Proviso]
CHAPTER 25/26 ‘ANY PERSON OR PERSONS’
25/26.1 Gifts may be received from 'any person or persons'
25/26.2 Whether Government is a 'person'
CHAPTER 27 IMMOVABLE PROPERTY - SCOPE OF THIS TERM
27.1 Immovable property
27.2 Gift received of rural agricultural land is exempt
27.3 Gift received is exempt if immovable property is the stock-in-trade of the recipient
CHAPTER 28 CONDITIONS FOR TAXABILITY OF GIFTS RECEIVED OF IMMOVABLE PROPERTIES
28.1 Conditions for taxability of immovable property received by Individual/HUF
CHAPTER 29 RECEIVED WITHOUT CONSIDERATION OR FOR A CONSIDERATION LESS THAN SDV BY RS. 50,000
29.1 Receipts of immovable property covered by section 56(2)(x)
29.2 Stamp Duty Value as of what date should be taken for the purposes of section 56(2)(x)(b)
CHAPTER 30 DATE OF RECEIPT OF IMMOVABLE PROPERTY
30.1 Date of receipt of immovable property
CHAPTER 31 VALUATION OF THE IMMOVABLE PROPERTY RECEIVED
31.1 Valuation provisions
31.2 Stamp duty value
CHAPTER 32 HOW TO COMPUTE THE LIMIT OF RS. 50,000
32.1 Computation of limit for immovable property as received without consideration
32.2 Limit for immovable property is independent limit
32.3 Clubbing of gifts of money received by a minor from non-relatives
CHAPTER 33 COMPUTATION OF CAPITAL GAINS ON TRANSFER OF IMMOVABLE PROPERTY TAXED AS GIFT
33.1 Cost of acquisition of immovable property taxed as gift
33.2 Holding period for determining whether capital gains are short-term or long-term
33.3 Importance of maintaining records
CHAPTER 34 ‘PROPERTY’ (OTHER THAN IMMOVABLE PROPERTY) (i.e. MOVABLE PROPERTY)
34.1 Property other than immovable property
34.2 Shares and securities
34.3 Artistic work
34.4 Jewellery
34.5 Bullion
34.6 Gold coins - Whether bullion or jewellery
34.7 Summary
CHAPTER 35 CONDITIONS FOR TAXABILITY OF MOVABLE PROPERTY RECEIVED WITHOUT CONSIDERATION OR FOR CONSIDERATION BELOW FMV
35.1 Conditions for taxability of movable property received by any recipient person
35.2 Amount taxable
CHAPTER 36 MOVABLE PROPERTY RECEIVED WITHOUT CONSIDERATION/ FOR CONSIDERATION LESS THAN FMV
36.1 Movable property received without consideration
36.2 Movable property received for consideration less than fair market value
36.3 Movable property received for consideration not determinable or not quantifiable
CHAPTER 37 DATE OF RECEIPT OF SHARES AND SECURITIES, JEWELLERY, ETC.
37.1 The phrase 'Receives……..any property, other than immovable property' used in section 56(2)(x)(c)
37.2 Date of receipt of shares and securities
37.3 Date of receipt of jewellery, artistic work and bullion
CHAPTER 38 DETERMINATION OF FAIR MARKET VALUE
38.1 Fair market value
38.2 Effective date of rules 11U and 11UA
CHAPTER 39 TAXATION OF SHARES AND SECURITIES RECEIVED
39.1 Scope of the term 'shares and securities'
39.2 Whether allotment of bonus shares by a company to its shareholders will attract tax in shareholder's hands under section 56(2)(x)(c)
39.3 Whether allotment of rights shares by a company will attract tax in shareholder's hands under section 56(2)(vii)(c)
39.4 Fair market value of shares and securities received
39.5 Determination of FMV of unquoted preference shares
CHAPTER 40 VALUATION OF JEWELLERY
40.1 Determination of FMV of Jewellery
40.2 Interpretation of requirements
40.3 Registered dealer
40.4 Registered valuer
40.5 Valuation date
40.6 Invoice value - Whether inclusive of VAT or exclusive of VAT
40.7 What if assessee does not have/obtain relevant documents as above - Invoice/valuation report
CHAPTER 41 VALUATION OF ARTISTIC WORK
41.1 Determination of FMV of artistic work
41.2 Interpretation of requirements
41.3 Registered dealer
41.4 Registered valuer
41.5 Valuation date
41.6 Invoice value - Whether inclusive of VAT/GST or exclusive of VAT/GST
41.7 What if assessee does not have relevant documents mentioned above such as invoice of registered dealer/valuation report
CHAPTER 42 VALUATION OF BULLION
42.1 Determination of FMV of bullion
CHAPTER 43 HOW TO COMPUTE THE LIMIT OF RS. 50,000
43.1 Computation of limit of Rs. 50,000 for movable property
43.2 Computation of limit of Rs. 50,000 for the previous year 2017-18 and subsequent previous years
43.3 Limits for movable property are independent limits
43.4 Clubbing of gifts received by a minor from non-relatives