ITAT Bangalore Upholds Disallowance of ₹1.37 Cr “Consultancy” to Swamiji; Reassessment Valid

Davanam Jewelers Private Limited Vs ACIT (ITAT Bangalore) The Bangalore ITAT dismissed the appeal of M/s. Davanam Jewelers Pvt. Ltd. and upheld the reassessment proceedings as well as major additions made by the Assessing Officer. The case arose from information flagged during post-search proceedings indicating payment of ₹1.37 crore as consultancy charges to a Swamiji. The Tribunal held that reopening under Section 147 was valid, as there was tangible material from post-search enquiries suggesting possible escapement of income. It rejected the assessee’s argument that proceedings should h...