Expenditure on consultancy for restructuring of company is allowable deduction u/s 37(1) of Income Tax Act, 1961

RELEVANT PARAGRAPH In order to appreciate the controversy few facts may be noticed. The assessee- company is manufacturing colour picture tubes. In respect of the assessment year 2004- 05 the assessee company incurred expenditure for the purpose of restructuring. The assessee- company had become a sick unit and in that regard a reference was made to BIFER for its rehabilitation which has passed an order giving substantial relief on 12.3.2007. The services of M/s Oberoi Sood and Kapoor, Chartered Accountants were engaged which resulted in preparation of final restructuring scheme. On account of...