Anand Kumar Chaurasia Vs DCIT (ITAT Delhi)
Diamond Sale Genuine: Delhi ITAT Deletes ₹82.67 Cr u/s 68 & ₹14.88 Lakh u/s 69C; Protective Jewellery Addition Also Dismissed
Assessee filed ROI declaring income of Rs.87.30 crore, including LTCG of Rs.76.18 crore on sale of diamonds. Assessment u/s 143(3) (post-search centralisation) derecognised the LTCG, treated sale consideration of Rs.82,67,44,250 as unexplained cash credit u/s 68, disallowed alleged commission of Rs.14,88,140 u/s 69C, & made a protective addition of Rs.2,05,13,134 towards unexplained jewellery. CIT(A) upheld additions u/s 68 & 69C but deleted the protective jewellery addition.
Before Tribunal, Assessee submitted that identical issues were decided in favour of his family member Shri Shashi Kant Chaurasia by ITAT order dated 20.01.2025 (AYs 2018-19 & 2019-20), wherein the entire diamond-sale transaction—from (i) declaration of rough diamonds in IDS-2016, (ii) subsequent processing, (iii) cutting & polishing at Surat, (iv) sale to third-party diamond merchants—was accepted as genuine, based on extensive evidences including invoices, confirmations, stock registers, bank proofs & 133(6) replies. All statements relied on by Revenue were found unreliable, partly selective, partly retracted, & unsupported by cross-examination. The Tribunal also held that IDS declarations are binding & conclusive.
Further, in Assessee’s own earlier years (AYs 2017-18 to 2019-20), the CIT(A) had already deleted identical additions on 17.06.2025 following ITAT’s ruling in Shashi Kant Chaurasia.
