Deductibility of legal expenses: litigation costs in tax proceedings are allowable as business deductions when justified by commercial expediency. Legal and accountancy expenses incurred in connection with proceedings before income-tax authorities, including appeals up to the Supreme Court, are allowable as business deductions under sections 10(2)(xv) and 37(1) of the Income-tax Act when such expenditure is incidental to the trade and justified by commercial expediency to protect the assessee from excessive tax claims.