Sri Rajani Gold v. Asst. CIT – Circle – 1(1)

Parties Involved

Facts Summary

The assessee, Sri Rajani Gold, is a firm engaged in bullion trading and gold ornaments trading. The firm filed its return of income for the Assessment Year 2017-18 on 17.02.2018, reporting a total income of Rs.43,31,080/-. The case was selected for complete scrutiny, and statutory notices were issued under section 143(2) and 142(1) of the Income Tax Act, 1961. A survey operation was conducted on 22.11.2016, and statements were recorded from the Managing Partner under section 133A of the Act. The Assessing Officer noticed that the assessee accepted demonetized currency from the public by making sales of gold bullion. The assessee explained that the amounts deposited in banks were from advances received for the sale of bullion before the demonetization period. However, the Assessing Officer rejected the books of accounts and estimated the income at 1% of the turnover, amounting to Rs. 79,92,050/-. The assessee appealed against the order of the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the order of the Commissioner of Income Tax (Appeals) is contrary to the facts and law applicable to the case.
• 2. Whether the provisions of section 68 of the Act are applicable to the entries in the bank account.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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