Allowability of legal & professional fees pertaining to buyback ...

Legal Fees for Share Buyback Treated as Deductible Revenue Expenditure in Income Tax, Not Capital Enhancement.

May 22, 2019

Case Laws Income Tax HC

Allowability of legal & professional fees pertaining to buyback of shares - deduction in respect of expenditure incurred for proceeding of implementation of buyback of shares which would not in any manner enhance the capital structure of the assessee but there is outflow of capital and no deduction is claimed for outflow of capital - allowed such expenditure as revenue expenditure.

View Source

← Previous Next →

Allowability of legal & professional fees pertaining to buyback ...

Legal Fees for Share Buyback Treated as Deductible Revenue Expenditure in Income Tax, Not Capital Enhancement.

May 22, 2019

Case Laws Income Tax HC

You may also like:

Assessee followed joint venture model for sharing revenue with collaborators as per franchise agreement. Assessee recorded all revenues, incurred expenditure, and shared...

Addition on account of licence fee paid to DOT - if any expenditure on account of licence fee was payable up to 31.07.1999, it should be treated as capital expenditure...

Income Tax: Tax on distributed income of domestic company for buy-back of shares to be treated as dividend in hands of shareholders. Cost of acquisition of shares bought...

This case deals with the disallowance of expenditure u/s 14A of the Income Tax Act, which pertains to expenditure incurred in relation to exempt income. The key points...

Addition u/s 68 - buyback was not genuine and added back the buyback amount as unexplained income - Section 68 of the Income Tax Act, 1961, which deals with unexplained...

Nature of expenses - apportioning the licence fee as partly revenue and partly capital - variable licence fee paid by the assessees under the New Telecom Policy, 1999 -...

Nature of expenditure - Whether expenditure incurred by the assessee like stamp charges, loan processing fee on term loan, marketing fees, sourcing expenses, share issue...

Commercial training and coaching services or business auxiliary service? - franchise fees - revenue sharing model - Career Launcher has paid Service Tax on the entire...

Non-compete fees paid by assessee were held to be revenue expenditure, deductible u/s 28(va) of Income Tax Act. Relying on Gujarat High Court's decision in Smartchem...

Business expenditure u/s.37(1) - share issue expenses - assessee has abandoned the proposal to issue shares at later stage - when the nature of expenditure incurred by...

HC upheld deductions claimed under section 37 for license fee paid to use the goodwill and name "Remfry & Sagar." The court determined that payment for using...

Nature of expenditure - Revenue expenditure or capital expenditure - expenditure incurred by the Appellant for raising floor height of Godown - The expenditure so...

Revision u/s 263 - Every loss of revenue as a consequence of an order of AO cannot be treated as prejudicial to the interests of the revenue, for example, when an...

Revenue or capital expenditure – software development expenditure – Assessee had treated the expenditure as a deferred revenue expenditure in the books of account and...

Nature of expenditure - the amount paid by assessee to ITC Limited at the time of termination of the agreement to manage the hotel, ought to be allowed, as a revenue...

Quick Updates: