Cash Credits - Section 68, Unexplained Investments -Section 69, Unexplained Money - Section 69A - Definition / Legal Terminology - Income Tax

For the purpose of Income Tax, Meaning of Cash Credits, Unexplained Investments, Unexplained Money Cash Credits - Section 68 Where any sum is found credited in the books of the 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 satisfactory in the opinion of the Assessing Officer, then the sum so credited may be charged to tax as the income of that previous year (i.e., the previous year in the books of which such sum is first credited). However, where the sum so credited consists of loan or borrowing or any such amount, by whatever name called, any explanation offered by such assessee shall be deemed to be not satisfactory, unless,- the person in whose name such credit is recorded also offers no explanation about the nature and source of such sum so credited; and source or explanation has been found not to be satisfactory. Further, any explanation offered by a closely held company in respect of any sum credited as share application money, share capital, share premium or any such amount by whatever name called in the accounts of such company any explanation offered by such assessee company shall be deemed to be not satisfactory, unless- the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory. These additional evidence would not be apply if the person, in whose name the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred in Section 10(23FB). Unexplained Investments - Section 69 Where in the previous year relevant to the assessment year, the assessee has made investments which are not recorded in the books of account, if any, maintained by him, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer , then the value of investments may be deemed to be the income of the assessee of such financial year. Unexplained Money, Etc. - Section 69A Where in any previous year, the assessee is found to be owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or other article is not recorded in the books of account, if any, maintained by him, and the assessee offers no explanation about the nature and source of acquisition of such assets or the explanation offered by him is not satisfactory, in the opinion of the Assessing Officer, then the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee of such financial year .