₹1.58 Cr Disallowed Legal Expenses Allowed by ITAT as Business Expenditure

Avitel Post Studioz Limited Vs DCIT (ITAT Mumbai)

Assessee, Avitel Post Studioz Ltd., challenged the disallowance of ₹1,58,51,240 incurred as legal & professional expenses, which were held by AO & CIT(A) to be capital in nature u/s 37(1).

The reassessment was initiated based on information about a ₹268.20 crore investment received from HSBC PI Holdings (Mauritius) in 2011. AO disallowed professional fees paid to five firms (KPMG, AZB & Partners, Nishith Desai & Associates, Wadia Gh&y & Co., & KPMG India), citing the expenses as capital expendi

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