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The lower authorities have upheld the disallowance pertaining to jewellery items and semi-precious items on the ground that the reasonableness of expenditure could not be established.

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Section 37 of the Income Tax Act,1961— Business expenditure—A perusal of the records would show that there is no denying that the gross turn-over of the assessee has been increasing and even the profit returned by the assessee has shown the corresponding proportional increase and only failure on the part of the assessee has been that he could not establish the business nexus of the impugned expenditure to the satisfaction of the lower authorities, thus, disallowance pertaining to jewellery items and semi-precious items on the ground that the reasonableness of expenditure could not be established was justified - RAJEEV VERMA V/s ASSTT. CIT - [2020] 27 ITCD Online 012 (ITAT-DELHI)