Legal and professional expenses relating to business is revenue in nature

Kadavanthara Builders Pvt Ltd Vs ITO (ITAT Bangalore) ITAT Bangalore held that legal and professional charges being incurred towards business are allowable as revenue expenditure. Facts- During the course of assessment proceedings, the AO observed that the main source of income during the impugned assessment year was income from deposits. As per the profit and loss accounts, the assessee had shown interest income of Rs. 17,35,627/- and advance written back of Rs.3 1,99,859/-. The fixed deposits were made out of its capital funds. The AO noted that assessee company has not carried out its main ...