The Tax Publishers2020 TaxPub(DT) 4662 (Del-Trib)

INCOME TAX ACT, 1961

Section 37(1)

Since professional and consultancy fee was paid by assessee to control its overseas group entity in order to carry out the due diligence and risk analysis with the target hotels, it would be allowable being revenue expenses in nature.

Business expenditure - Allowability - Professional and consultation fees -

Assessee was engaged primarily in the business of providing ancillary management support services to its overseas group entity, USA ('SCHI'). It claimed professional and consultation fees, expenditure of which was disallowed by AO. Held: Assessee availed services to control this group 'SCHI' in order to carry out the due diligence and risk analysis with the target hotels. Thus, these expenses were revenue in nature and hence, allowable.

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2008-09


INCOME TAX ACT, 1961

Section 37(1)

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