Professional and consultancy charges incurred during acquisition of companies cannot be treated as revenue expenses


Last updated: 26 July 2021

Court :
ITAT Bengaluru

Brief :
In M/s. Steer Engineering Pvt. Ltd. v. The Addl. Commissioner of Income Tax [ITA No. 2070/Bang/2018 decided on July 22, 2021], M/s. Steer Engineering Pvt. Ltd. ('the Appellant') acquired the business of two companies namely Concord United Products Pvt. Ltd., and M/s. Aditya Precision Deposition Moulding Pvt. Ltd. and incurred Rs.1,20,820/- as professional fees for drafting business transfer agreements and legal opinions. The Appellant claimed it as revenue expenditure.

Citation :
ITA No. 2070/Bang/2018 decided on July 22, 2021

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Bimal Jain
Published in Income Tax
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