Ms. Rajmal Lakhichand vs. DCIT, Jalgaon

Parties Involved

Facts Summary

The assessee is a firm engaged in the business of gold and silver, making jewellery and selling such jewellery and bullions. During the course of assessment proceedings, the Assessing Officer made additions based on a special audit under section 142(2A) of the IT Act. The assessee appealed against these additions and the penalty imposed by the CIT(A). The ITAT reduced one of the additions but confirmed the others. The assessee further appealed against the penalty order, leading to this judgment.…

Legal Issues

• 1. Penalty imposed on estimated gross profit addition
• 2. Penalty imposed on disallowance of interest expenses
• 3. Penalty imposed on disallowance of guest house expenses

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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