Cash credits.
- 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] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).], 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:Previous
Sec 67A — [ Method of computing a member's share in income of association of persons or body of individuals. [ Inserted by Act 3 of 1989, Section 12 (w.e.f. 1.4.1989).]
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Sec 69 — Unexplained investments
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