Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 75 - AT - Income TaxDisallowance of legal costs on account of fees paid to M/s. AZB & Partners - capital gain computation - Held that:- The undisputed facts brought before us are that legal fees has been paid to M/s AZB & Partners (advocates and solicitors) for protecting the investment of the assessee with Zandu. Further, an admitted fact is that as a result of the aforesaid legal exercise, the assessee earned larger amount of capital gains as initial open offer of ₹ 7,315/- per share was eventually enhanced to ₹ 16,500/- per share. The totality of facts and circumstances of the case and documentary evidences brought before us clearly suggest that undoubtedly, there was improvement in the value of the asset being shares of Zandu held by the assessee company. During the course of hearing, both the parties fairly agreed that even if impugned expenses may not be allowable as revenue expenses but these were, for sure, aimed for providing enhancement to the value of the shares. Under these circumstances, we do not find any hesitation in holding that these expenses should be added to the cost of shares as cost of improvement. The AO is directed to recompute the amount of capital gain earned by the assessee. - Decided partly in favour of assessee
|