Bhima Jewellers & Diamonds Vs. The Asst. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Bhima Jewellers & Diamonds, filed an appeal against the order passed by the NFAC, Delhi dated 30/06/2023 in DIN No. ITBA/NFAC/S/250/2023-24/1054048469(1) for the assessment year 2018-19. The AO found that the assessee had made substantial investment in a company, Bhima Jewellers LLC, in violation of the partnership deed and had diverted its interest-bearing funds for non-commercial purposes. The AO added Rs. 6,05,20,735/- to the total income of the assessee. The CIT(A) partly confirmed the order of the AO, and the assessee appealed to the ITAT.…

Legal Issues

• 1. Whether the disallowance made by the AO amounting to Rs. 6,05,20,735/- in part on account of diversion of interest-bearing fund for non-commercial purposes is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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