Fees for Share Purchase Agreement Drafting is Revenue Expenditure: ITAT

SSP Pvt. Ltd Vs ACIT (ITAT Delhi) In a recent decision by the Income Tax Appellate Tribunal (ITAT) Delhi, in the case of SSP Pvt. Ltd Vs ACIT, the question of whether fees incurred for the drafting of a share purchase agreement qualifies as revenue expenditure has been settled. The appeal, arising from the assessment year 2016-17, addressed the disallowance of advocate fees related to the preparation of a share purchase agreement. Background of the Case: The appellant, engaged in the manufacturing of engineering goods, had incurred advocate fees amounting to Rs 2,01,000 for the drafting of a s...