DEEMED INCOMES (Aggregation of Income)
In certain cases, some amounts are deemed as income in the hands of the
assessee though they are actually not in the nature of income.
These cases are contained in sections 68, 69, 69A, 69B, 69C and 69D.
The Assessing Officer may require the assessee to furnish explanation in such
cases. If the assessee could not provide proper explanation or the explanation
offered by the assessee is not satisfactory to the Assessing Officer, the amounts
referred to in these sections would be deemed to be the income of the assessee.
Such amounts have to be added or aggregated with the assessees income along
with other incomes.
Unexplained Cash credits (sec 68)
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.
Unexplained investments (sec 69)
Where in the financial year immediately preceding the assessment year the
assessee has made investments which are not recorded in the books of account, if
any, maintained by him for any source of income, and the assessee offers no
explanation about the nature and source of the investments or the explanation
offered by him is not, in the opinion of the Assessing Officer, satisfactory, the
value of the investments may be deemed to be the income of the assessee of such
financial year.
Unexplained money, etc (Sec 69A)
Where in any financial year the assessee is found to be the owner of any
money, bullion, jewellery or other valuable article and such money, bullion,
jewellery or valuable article is not recorded in the books of account, if any,
maintained by him for any source of income, and the assessee offers no
explanation about the nature and source of acquisition of the money, bullion,
jewellery or other valuable article, or the explanation offered by him is not, in the
opinion of the Assessing Officer, satisfactory, the money and the value of the
bullion, jewellery or other valuable article may be deemed to be the income of the
assessee for such financial year.
Amount of investments, etc., not fully disclosed in books of account (69B.)
Where in any financial year the assessee has made investments or is found to
be the owner of any bullion, jewellery or other valuable article, and the Assessing
Officer finds that the amount expended on making such investments or in
acquiring such bullion, jewellery or other valuable article exceeds the amount
recorded in this behalf in the books of account maintained by the assessee for any
source of income, and the assessee offers no explanation about such excess amount
or the explanation offered by him is not, in the opinion of the Assessing Officer,
satisfactory, the excess amount may be deemed to be the income of the assessee for
such financial year.
Unexplained expenditure, etc (69C).
Where in any financial year an assessee has incurred any expenditure and he
offers no explanation about the source of such expenditure or part thereof, or the
explanation, if any, offered by him is not, in the opinion of the Assessing Officer,
satisfactory, the amount covered by such expenditure or part thereof, as the case
may be, may be deemed to be the income of the assessee for such financial year :
Provided that, notwithstanding anything contained in any other provision of this
Act, such unexplained expenditure which is deemed to be the income of the
assessee shall not be allowed as a deduction under any head of income.
Amount borrowed or repaid on hundi (69D.)
Where any amount is borrowed on a hundi from, or any amount due thereon
is repaid to, any person otherwise than through an account payee cheque drawn on
a bank, the amount so borrowed or repaid shall be deemed to be the income of the
person borrowing or repaying the amount aforesaid for the previous year in which
the amount was borrowed or repaid, as the case may be:
Provided that, if in any case any amount borrowed on a hundi has been
deemed under the provisions of this section to be the income of any person, such
person shall not be liable to be assessed again in respect of such amount under the
provisions of this section on repayment of such amount. For the purposes of this
section, the amount repaid shall include the amount of interest paid on the amount
borrowed.
residential status
