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Nimesh N. Kampani Versus Asst. CIT, Circle-4 (2) , Mumbai

2016 (9) TMI 1061 - ITAT MUMBAI

Disallowance of legal expenditure and travelling, hotel expenditure - Held that:- From the record we found that that the expenditure is incurred by the assessee in his character as a professional and is not an expenditure which is personal in nature. The assessee has in his professional capacity been a director of various limited companies has earned professional fees for the services rendered to these companies. He was a director of Nagarjuna Finance Limited (NFL) from 14-12-1982 to 28-04-1999. .....

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itute of Capital Markets, CII, SEBI etc. He regularly gets sitting fees and commission from many of these Companies. The assessee was also an independent Director on the board of Nagarjuna Finance Limited. Nagarjuna Finance Limited had collected Fixed Deposits from the public. Nagarjuna Finance Limited was charged with default in repayment of fixed deposits and interest thereon. Mr. Nimesh Kampani has been mentioned as one of the accused among several others, for non-payment of these fixed depos .....

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egal expenses. - In respect of travelling expenditure, it appears that the assessee has filed details before the CIT(A) under Rule 46A, which was declined by the CIT(A) as additional evidence. Since the impugned expenditure also partake the character of professional expenses and which goes to the root of the issue while deciding allowability of hotel and travelling expenses, we restore the matter back to the file of the A.O. for considering the additional evidence filed with reference to exp .....

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ent year (A.Y.) 2009-10. In this appeal, the assessee is aggrieved for disallowance of legal expenditure of ₹ 40,72,750/- and travelling, hotel expenditure of ₹ 14,93,188/-. 2. Rival contentions having been heard and record perused. Facts in brief are that the assessee debited an amount of ₹ 55,65,938/- under the head "legal fees and related expenses". In respect of this expenditure, the assessee explained to the Assessing Officer that the assessee was Director on Boa .....

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inst the assessee. To defend himself, the assessee had appointed various advocates to represent his case before various courts viz., District Court, High Court, Supreme Court. The appellant paid fees to the advocates and other expenses incurred. The details of such expenses were furnished by the assessee to the Assessing Officer. The assessee argued before the Assessing Officer that the expenditure was incurred to protect his business interest and, therefore, the same should be fully allowable u .....

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penditure of ₹ 55,65,938/-, which was disallowed by the A.O. on the plea of personal expenses. From the record we found that that the expenditure is incurred by the assessee in his character as a professional and is not an expenditure which is personal in nature. The assessee has in his professional capacity been a director of various limited companies has earned professional fees for the services rendered to these companies. He was a director of Nagarjuna Finance Limited (NFL) from 14-12- .....

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