TBZ Nirmal Zaveri Private Limited vs DCIT-5(3)(1)

Parties Involved

Facts Summary

The assessee, TBZ Nirmal Zaveri Private Limited, is a private limited company engaged in the business of goldsmith, silversmith, and jewelers. During the assessment year 2014-15, the assessee filed a return declaring a total income of Rs.3,06,33,780/-. The case was selected for scrutiny under CASS, and the Assessing Officer (AO) found that the assessee had claimed deductions amounting to Rs.25,94,892/- as business promotion expenses and Rs.38,76,693/- under professional fees. The AO disallowed an amount of Rs.12,50,000/- paid as professional fees to two parties, Mrs. Shalini S Zaveri and Mrs. Meera Zaveri, for business promotion and conceptualization of design. The assessee provided details of expenses, bank statements, and TDS certificates but the AO did not consider these submissions and confirmed the addition. The assessee then appealed to the Commissioner of Income-tax (Appeals) who upheld the AO's order, leading the assessee to file an appeal before the Tribunal.…

Legal Issues

• 1. Whether the expenditure amounting to Rs.12,50,000/- paid as professional fees to Mrs. Shalini Zaveri and Mrs. Meera Zaveri is allowable as a business expense.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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