Ishwarlal Harjivandas Jewellers Pvt. Ltd. vs. ACIT

Parties Involved

Facts Summary

Ishwarlal Harjivandas Jewellers Pvt. Ltd. is a private limited company engaged in the business of manufacturing and trading of gold, platinum, silver, and diamonds, as well as jewelry/ornaments. For the assessment year 2021-22, the company filed its income return on 11-02-2022, declaring a total income of Rs. 1,75,81,470/-. The return was taken for scrutiny assessment due to a large turnover from the jewelry business and non-returned income. The Assessing Officer disallowed commission expenses of Rs. 5,00,000/- paid to Shri Dhannanjay Kishanrav Katkar of M/s. Jai Santoshi Mata Touch Lab and also disallowed vehicle petrol and repair expenses of Rs. 3,47,376/- i.e. 50% of the total expenses disallowed on account of personal use. The assessee filed an appeal against the assessment order, which was confirmed by the Commissioner of Income Tax (Appeals). However, the Commissioner restricted the petrol and vehicle repair expenses at 10%, which works out to Rs. 69,475/-, thus, partly allowed.…

Legal Issues

• 1. Disallowance of commission expenses of Rs. 5,00,000/-
• 2. Disallowance of vehicle petrol and repair expenses at 10% (out of 50%)

Judgment Outcome

Decided in favour of Assessee.

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