Cash credits.
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 :
Provided that where the assessee is a company (not being a company in which the public are
substantially interested), and the sum so credited consists of share application money, share
capital, share premium or any such amount by whatever name called, any explanation offered
by such assessee-company shall be deemed to be not satisfactory, unless—
(a) 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
(b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be
satisfactory:
Provided further that nothing contained in the first proviso shall 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 to in clause (23FB) of section 10.
Unexplained investments.
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.
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.
Explanation—For the purposes of this section, the amount repaid shall include the amount of
interest paid on the amount borrowed.
[Deduction of tax at source on payment of certain sum for purchase of goods.
194Q. (1) Any person, being a buyer who is responsible for paying any sum to any resident
(hereafter in this section referred to as the seller) for purchase of any goods of the value or
aggregate of such value exceeding fifty lakh rupees in any previous year, shall, at the time of
credit of such sum to the account of the seller or at the time of payment thereof by any mode,
whichever is earlier, deduct an amount equal to 0.1 per cent of such sum exceeding fifty lakh
rupees as income-tax.
Explanation—For the purposes of this sub-section, "buyer" means a person whose total
sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees
during the financial year immediately preceding the financial year in which the purchase of
goods is carried out, not being a person, as the Central Government may, by notification in
the Official Gazette, specify for this purpose, subject to such conditions as may be specified
therein.
(2) Where any sum referred to in sub-section (1) is credited to any account, whether called
"suspense account" or by any other name, in the books of account of the person liable to pay
such income, such credit of income shall be deemed to be the credit of such income to the
account of the payee and the provisions of this section shall apply accordingly.
(3) If any difficulty arises in giving effect to the provisions of this section, the Board may,
with the previous approval of the Central Government, issue guidelines for the purpose of
removing the difficulty.
(4) Every guideline issued by the Board under sub-section (3) shall, as soon as may be after
it is issued, be laid before each House of Parliament, and shall be binding on the income-tax
authorities and the person liable to deduct tax.
(5) The provisions of this section shall not apply to a transaction on which—
(a) tax is deductible under any of the provisions of this Act; and
(b) tax is collectible under the provisions of section 206C other than a transaction to
which sub-section (1H) of section 206C applies.]
