3.
It is true that in terms of Section 16 (1), ITC is available against any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business.
As definition of 'Business' u/s 2 (17) is itself "inclusive / non-exhaustive definition' and is very wide and some relevant portion of the definition is reproduced below:
“business” includes––
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
........................................."
The activities of "buy back of shares or issue of shares" by a limited company falls within clause (b) of above definition of "business" (i.e. "the activity in connection with or incidental or ancillary to sub-clause (a) of above-said definition") in my view.
Hence, taxes charged on professional fee incurred in connection with buy back of shares or issue of shares by a limited company are eligible for ITC in my view u/s 16 (1).
This is strictly personal view of mine and the same should not be construed as professional advice / suggestion.