SHRI KAMLESH GUPTA,LUCKNOW vs. THE ACIT, RANGE-1, LUCKNOW

ITA 381/LKW/2020Status: DisposedITAT Lucknow07 August 2026AY 2017-1816 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that an increase in sales does not automatically justify an addition, especially when books of account are accepted and sales proceeds are already recorded. Sustaining an addition on estimation without specific defects in books is not permissible.

What were the facts?

The assessee, a trader, made cash deposits during demonetization. The Assessing Officer (AO) added a portion of these deposits as unexplained, viewing them as not substantiated by increased sales. The CIT(A) partially deleted the addition but sustained a Rs. 20,00,000 addition.

What were the issues?

Whether cash deposits during demonetization, linked to sales, can be treated as unexplained income when books of account are not rejected and sales are recorded. Whether a partial addition can be sustained on an estimated basis without specific defects.

Which sections of the Income-tax Act were involved?

Section 68,Section 69A,Section 115BBE,Section 271AAC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY

PER BENCH:

These are cross-appeals by the assessee as well as the Revenue against the order dated 23.09.2020, passed by the Learned Commissioner of Income Tax (Appeals)-1, Lucknow [Ld. CIT(A)] for Assessment Year 2017-18. 2.0 The brief facts of the case are that the assessee was a trader engaged in wholesale as well retail business of consumer

ITA No.448/LKW/2020 goods, like Agarbattis, Dhoop Batties, Bidi, Cigarette, Match box, Mineral Water, Mouth Freshner, etc. under the proprietary concern ‘M/s Shree Maa Vaishno Devi Trading Company’. The assess

The order continues below.

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