LALA KASHI NATH SETH JEWELLERS PRIVATE LIMITED,SHAHJAHANPUR vs. ACIT-1, BAREILLY, BAREILLY

ITA 185/LKW/2025Status: DisposedITAT Lucknow05 August 2026AY 2017-1827 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that cash sales, once disclosed as revenue receipts and included in the profit and loss account, cannot be treated as unexplained under Section 68. It also found that the addition for 'extra profit' was based on mere assumption without evidence.

What were the facts?

The assessee, a jeweller, made significant cash deposits during the demonetization period. The Assessing Officer (AO) treated a portion of cash sales and an 'extra profit' as unexplained income, leading to additions.

What were the issues?

Whether cash sales disclosed as revenue receipts can be added under Section 68 as unexplained credit, and whether an addition for 'extra profit' is justified without supporting evidence.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 145(3)

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 SUDHANSHU SRIVASTAVA, J.M.:

This appeal has been preferred by the Assessee against the order dated 23.12.2024, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2017-18. 2.0 The brief facts of the case are that the assessee- company (M/s Lala Kashi Nath Seth Jewellers Private Limited) was engaged in trading of Gold, Silver and Diamond Ornaments. The assessee e-filed its return of income for the year under consideration in ITR-6 on 31.10.2017 declaring a total income of Rs.2,51,40,830/-, which was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called 'the Act’) by the Centralized

ITA No.185/LKW/2025 Processing Centre (CPC), Bangalore. Subsequently, the case of th

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →