Unexplained expenditure, etc. [ Section 69C read with Section 115BBE ] - Income Tax - Ready Reckoner - Income Tax

Unexplained expenditure, etc. [ Section 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 : Not allowed any deduction under any head - 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 . Tax and Penalties on such unexplained Investment Tax u/s 115BBE- Where the total income of an assessee includes income u/s 68 / 69 / 69A / 69B / 69C / 69D , the total income tax payable shall be aggregate of- Income tax @ 60 % on income under the specified sections, and Income tax payable by assessee had his total income being reduced by the amount of income under these specified sections. Earlier, the rate was @30% on such income of undisclosed nature. This rate was changed to @60% w.e.f. 1/4/2017.) No deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assessee in computing his income under the specified sections. Surcharge - In respect of any income chargeable to tax under section 115BBE(1)(i) of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, calculated at the rate of 25% of such income-tax. Penalty u/s 271AAC - Where income of assessee includes income u/s 68 / 69 / 69A / 69B / 69C / 69D , the following officers - Assessing Officer ; or Joint Commissioner (Appeals) ; or Commissioner (Appeals) may (in addition to tax payable under section 115BBE ) impose penalty, @10% of tax payable under section 115BBE on such income. No penalty shall be levied if income under these specified sections is included in return of income u/s 139 and tax has been paid under section 115BBE on or before the end of the relevant PY. If Penalty has been imposed under section 271AAC(1) then Section 270A penalty does not imposed again on the assessee.