The burden of proving commercial expediency of expenditure and establishing a nexus between expenditure and business lies with the assessee. The assessee claimed a deduction towards professional and consultancy charges, however the same was disallowed on grounds that payment was not supported by proper evidence to establish commercial expediency and nexus with business. The income has been offered as ‘Compensation received’ under the head ‘Income from Other Sources’ and not as professional fees. The main ground on which the expenditure is disallowed by the AO is that the assessee could not substantiate the claim in terms of commercial expediency to incur the expenditure and the nexus between the expenditure and the business. Matter was remitted back to the CIT (A) (AY. 2011-12)