URBAN PLAZA LLP,LUCKNOW vs. ITO WARD 1(4), LUCKNOW

ITA 539/LKW/2026Status: DisposedITAT Lucknow25 September 2026AY 2020-219 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the addition made under Section 69 was erroneous as the transaction was recorded in the books of account and the assessee had provided evidence. It also noted that no independent inquiry was made from the lender to ascertain creditworthiness.

What were the facts?

The assessee, an LLP, failed to file its return of income for AY 2020-21. The AO reopened the assessment based on information about a time deposit and interest income. Subsequently, an addition of Rs. 10,00,000 was made for an alleged unexplained loan/advance.

What were the issues?

The key issues were the validity of the reopening of assessment, the propriety of the addition made under Section 69 for a loan recorded in books, and the lack of independent inquiry by the AO and CIT(A).

Which sections of the Income-tax Act were involved?

Section 69,Section 115BBE,Section 151,Section 148A,Section 148,Section 68

AI-generated summary — verify with the full judgment below

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

Before: SHRI KUL BHARAT

PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC) dated 09.03.2026 pertaining to the assessment year 2020-21. The assessee has raised the following grounds of appeal: - “1. On the facts and circumstances of the case and in law, there was no valid sanction obtained by the Ld. Assessing Officer u/s 151 of the Income Tax Act, 1961 for re-opening the asse

The order continues below.

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