2025 (11) TMI 1472

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.... impugned order emanated from the order of the Ld. Income-tax Officer, Ward 3(2)(2), Mumbai (in short, 'Ld.AO') passed under section 143(3) of the Act, 1961, date of order 28/12/2018. 2. The revenue has raised the following grounds:- "i) "Whether on the facts and circumstances of the case and in Law, the Ld CIT(A) erred in holding that the Legal expenses and consultancy charges of Rs. 2,05,11,106/- as fully revenue in nature and the balance of Rs. 49,53,764/- as Deferred Revenue Expenses to be allowed in 5 equal instalments." ii) "Whether on the facts and circumstances of the case and in Law, the Ld CIT(A) was justified in disallowing the reworking of the book profit u/s 115JB by the AO". iii) The appellant pra....

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....onsider the assessee's calculations and accept the said computation filed during filing of return. Aggrieved, the revenue filed an appeal before us. 4. The Ld.DR argued and relied on the impugned assessment order. 5. The Ld.AR argued and submitted a paper book which is containing 1 to 56 pages and is placed on record. The Ld.AR related to legal expenses stated that the said expenses are claimed as per the provisions of section 35DD of the Act. The Ld.AR fully relied on impugned appeal order. The relevant paras 5.4 & 5.5 are reproduced as below: - "5.4 I have carefully considered the facts of the case, the submission of the appellant and evidences on record, Any expenditure, wholly and exclusively, incurred for the purpose of ....

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....w the balance expenditure incurred towards the Amalgamation of Rs. 49,53,764 as led down in Section 35DD of the Act. The appeal on Ground Nos 1 to 2 are party allowed." 5. In further argument related to re-computation of book profit under section 115JB of the Act, the Ld.AR stated that the deferred tax amount to Rs. 70,02,985/- and unabsorbed depreciation amount to Rs. 36,588/- was already considered during the computation of book profit. The assessee submitted the Form 29B which is annexed in APB pages 54 to 56 and at Note No.27, already both the amounts are adjusted during calculation of book profit under section 115JB of the Act. But Ld.AO had not rejected the said Form-29B which was submitted by the assessee during the filing of retu....