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2016 (2) TMI 1188 - AT - Income TaxAddition on account of the claim of assessee for deduction u/s 80IA(iv) - Held that:- As referring to earlier AYs Nothing contrary was brought to our knowledge on behalf of the Revenue. Facts being similar, so following the same reasoning, we are not inclined to interfere in the findings of the CIT(A) who has rightly deleted the addition of ₹ 85,14,513 in the Assessment Year 2008-09 and ₹ 1,05,98,781/- in the Assessment Year 2009-10 made in respect of deduction u/s 80IA(4)(iv). Thus, the order of the CIT(A) is upheld in this regard. Addition on account of the claim of the assessee for legal and professional fees - Held that:- AO ought to have appreciated that the payment to Deloitte was for consulting and seeking advice on bidding for acquisition of European cage manufacturing company since assessee is engaged in the business of manufacturing bearing cages. Such consultancy was potential risk and reward attached with assessee’s business; therefore the expenditure on the same is wholly and exclusively for the business of the assessee. Payment to Mars Export Services was for export promotion capital goods authorization; therefore, the same is also wholly and exclusively for the business of the assessee. The professional fees paid to Shri Mukesh Patel and Shri Saurabh Soparkar was also for consultancy/legal services against the service rendered by them, hence the same is also wholly and exclusively for the business of the assessee. Therefore, the impugned disallowance made by the Assessing Officer on lump-sum basis is not tenable in the eyes of law. CIT(A) was justified in deleting the addition of ₹ 9,00,000/- against the total disallowance of ₹ 12,00,000/- made by the Assessing Officer on account of legal and professional fees of ₹ 82,58,275/-. Therefore, we uphold the order of CIT(A) in this regard.
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