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2023 (1) TMI 175 - HC - Income TaxCapital gain computation - expenses incurred towards fees paid to KPMG, Khaitan & Co. Bank Charges and other miscellaneous expenses in relation to the transfer of capital asset u/s 48 - Revenue’s case is that expenditure incurred towards professional services rendered by KPMG and Khaitan & Co. has no nexus with the transfer of shares - HELD THAT:- In the instant case, assessees have engaged the services of professional who have identified the investor, negotiated the value and structured the transaction. Therefore, in our considered view, the transaction has an inextricable nexus with the transfer of shares. The other ground that was urged on behalf of the Revenue is, KPMG had addressed the letter to the Managing Director of the Company and therefore, assessees had no obligation to make the payment. We have perused the engagement letter dated June 20, 2014. The letter is addressed to the Assessees. Thus, this contention is contrary to records and therefore liable to be rejected. In our considered view, the assessees, in accordance with the para 8 of the Articles of Association, have taken services of KPMG and Khaitan & Co., and the engagement of the said firms has direct nexus with the transfer of shares. Hence, the expenditure incurred is deductible u/s 48(i) of the IT Act. Decided in favour of the assessees
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