Professional charges incurred during company acquisition cannot be treated as revenue expenses

M/s Steer Engineering Pvt. Ltd. Vs Addl. CIT (ITAT Bangalore)

M/s. Steer Engineering Pvt. Ltd. (Appellant) acquired the business of two companies namely Concord United Products Pvt. Ltd., and M/s. Aditya Precision Deposition Moulding Pvt. Ltd. and incurred Rs.1,20,820/- as professional fees for drafting business transfer agreements and legal opinions. The Appellant claimed it as revenue expenditure.

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