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[2008] 304 ITR 186 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Commissioner of Income-tax v. Porrits and Spencer (Asia) Ltd. ADARSH KUMAR GOEL AND RAJESH BINDAL, JJ. ITR NOS. 15 AND 16 OF 1990 OCTOBER 30, 2006 Section 80VV of the Income-tax Act, 1961 - Deduction - Expenses incurred in connection with Income-tax proceedings [A.Y. 1980-81]. The assessee's claim of deduction of amount of legal charges paid to a company was disallowed on the ground that the services were rendered in respect of proceedings before the authorities and the deduction was hit by the provisions of section 80VV. The Tribunal allowed the assessee's claim holding that payments were not made only for representation before the authorities but also for advice. Held that section 80VV was concerned only with representation before the authorities / Court, while the fee could be paid even for general consultation, which was not covered under section 80VV. Having regard to the finding of the Tribunal that the amount was paid not only for the services rendered for representation before the authorities but also for consultation, no fault could be found with the view taken by the Tribunal in allowing the deduction. Yogesh Putney for the Commissioner. JUDGMENT The following question of law has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench "A", New Delhi (for short, "the Tribunal")/ arising out of its order dated November 29, 1985, in I. T. A. Nos. 3141 and 3256 Delhi) of 1984, for the assessment year 1980-81 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the legal charges amounting to Rs. 20,343 paid to M/s. A. F. Ferguson and Co., were not hit by the provisions of section 80VV of the Income-tax Act, 1961, and were not subject to the ceiling fixed under section 80VV ?" The assessee claimed deduction of Rs. 20,343 paid to M/s. A. F. Ferguson and Company, which was disallowed on the ground that the services were rendered in respect of proceedings before the authorities and the deduction was hit by the provisions of section 80VV of the Income-tax Act, 1961 (for short, "the Act''). The…

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