https://www.taxtmi.com/caselaws?id=757461 ITAT Delhi allowed deduction of legal and professional charges that AO had disallowed as capital/personal expenditure. The tribunal held that payments made to advocates for defending the company in ordinary course of business were allowable business expenses. The expenses were incurred to protect company's image and ensure smooth business conduct, supported by proper documentation, made through banking channels with TDS deduction. The tribunal found payments were neither penal, capital, nor personal in nature, and were similar to legal fees paid for income tax disputes. AO was directed to allow the deduction. en-us Wed, 07 Feb 2024 00:00:00 +0530 Tue, 27 Aug 2024 08:17:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757461 ITAT Delhi allowed deduction of legal and professional charges that AO had disallowed as capital/personal expenditure. The tribunal held that payments made to advocates for defending the company in ordinary course of business were allowable business expenses. The expenses were incurred to protect company's image and ensure smooth business conduct, supported by proper documentation, made through banking channels with TDS deduction. The tribunal found payments were neither penal, capital, nor personal in nature, and were similar to legal fees paid for income tax disputes. AO was directed to allow the deduction. Case-Laws Income Tax Wed, 07 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757461