HC allowed assessee's appeal challenging the Assessing Officer's...

HC allowed assessee's appeal challenging the Assessing Officer's disallowance of mutual fund promotion and initial public offer expenditure. The court held that the AO cannot substitute his discretion for the assessee's business judgment regarding expense reasonableness. The expenditure was deemed to be incurred for commercial expediency, with a direct nexus to the assessee's business activities. The court emphasized that expenses related to group company operations and business expansion should be considered legitimate business expenditure. Consequently, the expenses were deemed allowable and eligible for deduction in the assessee's income tax return, thereby providing a favorable ruling for the taxpayer's claim.