ACIT, RANGE-1, LUCKNOW vs. LALJI JEWELLERS PVT. LTD., LUCKNOW

ITA 434/LKW/2020Status: DisposedITAT Lucknow25 May 2026AY 2017-1821 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the AO was not legally correct in making the addition based on mere suspicion and that the CIT(A) had rightly deleted the addition. The Tribunal followed previous judgments and the High Court's affirmation of similar orders.

What were the facts?

The assessee, a jeweler, reported substantial cash sales during the demonetization period. The Assessing Officer (AO) treated a significant portion of these sales as bogus and added it to the income. The Commissioner of Income Tax (Appeals) partly allowed the appeal, directing addition of profit on premium sales.

What were the issues?

Whether the AO was justified in treating a portion of cash sales during demonetization as bogus receipts without sufficient evidence, and whether the CIT(A) erred in partially allowing the appeal by considering profit on premium sales.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 271AAC

AI-generated summary — verify with the full judgment below

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

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY

For Appellant: Shri Rakesh Garg, Advocate

PER BENCH:

These are cross-appeals by the assessee as well as the Revenue against the order dated 16.09.2020, passed by the ld. Commissioner of Income Tax (Appeal)-2, Lucknow (ld. CIT(A)) for Assessment Year 2017-18. 2.0 The brief facts of the case are that the assessee was engaged in the business of SALE OF Jewellery during the year under consideration. The assessee e-filed its return of income for ITA No.373/LKW/2020 & ITA No.434/LKW/2020 the year under consideration on 06.11.2017, declaring a total income of Rs.36,32,000/-. The case of the assessee was selected for scrutiny through Computer Aided S

The order continues below.

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