Naresh Gupta Vs ACIT (ITAT Jaipur)
The Income Tax Appellate Tribunal (ITAT), Jaipur, considered an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals) dated 26.09.2025 arising from the assessment order passed under Section 143(3) of the Income-tax Act, 1961 for the relevant assessment year. The appeal involved three issues relating to disallowance of LIC commission expenses, disallowance of NCDEX margin shortfall charges under Section 37, and disallowance of interest expenditure under Section 36(1)(iii).
The first ground related to the disallowance of ₹10,730 out of total expenses of ₹53,651 claimed against LIC commission income of ₹1,28,651. The assessee admitted that no separate books of account were maintained for the insurance commission business and sought deletion of the estimated disallowance sustained by the CIT(A). The Revenue relied upon the LIC (Agents) Regulations, 2017 and submitted that, in the absence of separate details of first-year and renewal commissions, the estimated disallowance was justified. The Tribunal referred to CBDT Circular No. 648 dated 30.03.1993, which permitted specified deductions where separate books were not maintained. Taking the circular as a guiding principle, the Tribunal observed that the deduction already allowed by the CIT(A) exceeded the amount justified on that basis and held that no further deduction was allowable. Accordingly, this ground was dismissed.
