Case Law Analysis
|Income Tax Appellate Tribunal
Section 37(1) IT Act | ITAT Mumbai Upholds Deduction of OFAC-Related Professional Fees on Grounds of Commercial Expediency : ITAT
ITAT Mumbai overturns Rs.6.75 crore disallowance, ruling that professional fees paid to facilitate payments to OFAC-sanctioned entities qualify as deductible business expenditure under Section 37(1) IT Act. The tribunal emphasizes that commercial expediency, not revenue assumptions, determines allowability of such expenses.