2006 (10) TMI 133

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....g question of law has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench "A", New Delhi (for short, "the Tribunal"), arising out of its order dated November 29, 1985 in I. T. A. Nos. 3141 and 3256 (Delhi) of 1984, for the assessment year 1980-81: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that ....

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....scuits P. Ltd. v. CIT [2008] 304 ITR 181 (P&H)) and observed (page 183): "On general principle, fee paid to professional advisors was allowable. Reference may be made to the judgment of the hon'ble Supreme Court in CIT v. Birla Cotton Spg. and Wvg. Mills Ltd. [1971] 82 ITR 166, wherein it was observed (page 171): 'The essential test which has to be applied is whether the expenses were incurr....

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....any steps for reducing its liability to tax which result in more funds being left for the purpose of carrying on the business there is always a possibility of higher profits . . . The expenditure which was incurred by the assessee in opposing a coercive governmental action with the object of saving taxation and safeguarding business was justified by commercial expediency and was, therefore, allowa....

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.... proper legal advice as and when problems arise. The assessee may also resort to a consultation with the tax consultant for the purpose of tax planning. There may be other questions arising in the course of the assessee's business touching upon the taxation laws. These problems cannot be separated itemwise nor can the fee paid to the consultant regarding income-tax cases before the authorities and....