ITAT Deletes Adhoc Disallowance on URD Cash Purchases in Jewellery Business

Advertisement G. N. Adgaonkar Jewels Vs ITO (ITAT Pune) In a significant ruling for a jewellery business, the Income Tax Appellate Tribunal (ITAT) Pune has deleted an ad-hoc addition of Rs. 22,05,077/- made by the Assessing Officer (AO) to G. N. Adgaonkar Jewels for the Assessment Year 2017-18. The Tribunal found the disallowance, which pertained to 50% of cash purchases made from unregistered dealers (URDs), unsustainable due to a flawed verification process and the consistent nature of the assessee’s business practices. The case originated from an assessment under Section 143(3) of...