2023 (10) TMI 1036

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.... Ms. Shivangi Kumar, Adv For the Revenue : Shri Anuj Garg, Sr. DR ORDER PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 6265/Del/2019 for AY 2016-17, arises out of the order of the Commissioner of Income Tax (Appeals)-8, New Delhi [hereinafter referred to as "ld. CIT(A)", in short] in Appeal No. 10224/18- 19 dated 11.06.2019 against the order of assessment passed u/s 143(3) of the I....

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....n account of due diligence expenses under the head "exceptional items". The assessee submitted that it being in the business of aquaculture and fisheries had invested in Samudra Hatcheries Pvt Ltd which is also in the same business of aquaculture and fisheries. This investment made in Sadudra Hatcheries Pvt. Ltd was to increase the production and supply of "shrimps" in local market and hence, incr....

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.... view of the decision of the Hon'ble Karnataka High Court in the case of CIT Vs. Onmobile Global Ltd reported in 129 taxmann.com 254 wherein, it was held that the expenditure incurred by the assessee for conducting due diligence of a company which was eventually acquired by the company to be allowable as revenue expenditure. The relevant operative portion of the said decision is reproduced herein:....

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....ature and has treated the same to be deductible expenditure under section 37(1) of the Act. The aforesaid finding of the Tribunal is based on meticulous appreciation of material on record and does not call for any interference. In the result, the fourth substantial question of law is also answered against the revenue and in favour of the assessee." 5. Further, we find that the Hon'ble Rajasthan....