TaxTMI 
TaxTMI 
2022 (5) TMI 44
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....ore it against order dated 31.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by ACIT, Circle -8(2), New Delhi (hereinafter referred to as the Ld. Assessing Officer or in short 'ld. AO'). 2. The facts in brief are that appellant company is a non banking financial company NBFC and is engaged in the business of investments and financing activities. Return declaring an income of Rs. 2,36,44,670/- was filed on 29.09.2013. The case was selected for scrutiny. The AO completed the assessment u/s 143(3) vide order dated 31.03.2016 after making disallowance on account merger expenses at Rs. 7,67,790/- and on account of legal and professional expenses at Rs. 35,45,352/-. 3. In appeal the ld. F.A.A. while....
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....alf of the assessee by Ld. Counsel that Ld. AO has failed to appreciate that it was with the professional assistance of these firms M/s. Khaitan Sud & partners and M/s. Sapphaire Professional Services Pvt. Ltd. and CS Jariwala & Company, assessee had initiated process to purchase paper from M/s. Garnett Specialty Papers Ltd. and latter for considering to take over the company itself, However, due to certain business restrictions the take-over could not be completed and in the next financial year. Paper worth 3,20,99,547/- were purchased from the said company. It was submitted that the Tax Authorities have substituted their opinion with regard to prudence involved in engaging professional services of legal nature. It was submitted that it is....
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....onfirmed the addition by stretching too far the rules of prudence. The Ld. AO himself observed in the order that the services engaged were from top most legal professionals. If that was the view of Ld. Tax Authorities then it was not justified to discredit the bills raised by them for services holding that assessee failed to provide substantive evidence and it could not succeed in getting supply of paper during the year or even failed to take over the company. The business uncertainties are infinite and to discredit any professional service on basis that concerned business activity having failed inspite of professional service, is not prudent approach. The very purpose of availin such services of professionals is to ensure that the entrepre....