https://www.taxtmi.com/caselaws?id=65022 Legal and professional fees paid for advice on foreign exchange obligations and share-registration of non-resident holdings were treated as revenue expenditure. The Tribunal held that the assessee sought legal opinions to address a genuine risk of contravention of foreign exchange law, avoid potential financial and penal consequences, and protect its existing business; the expenditure therefore had the character of business expenditure under section 37 of the Income-tax Act, 1961. The reference to costs in the Supreme Court litigation was construed as court-awarded costs under the Supreme Court Rules, not solicitors' fees for legal advice. The disallowance was deleted. en-us Tue, 05 Sep 2000 00:00:00 +0530 Fri, 11 Feb 2011 17:18:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65022 Legal and professional fees paid for advice on foreign exchange obligations and share-registration of non-resident holdings were treated as revenue expenditure. The Tribunal held that the assessee sought legal opinions to address a genuine risk of contravention of foreign exchange law, avoid potential financial and penal consequences, and protect its existing business; the expenditure therefore had the character of business expenditure under section 37 of the Income-tax Act, 1961. The reference to costs in the Supreme Court litigation was construed as court-awarded costs under the Supreme Court Rules, not solicitors' fees for legal advice. The disallowance was deleted. Case-Laws Income Tax Tue, 05 Sep 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65022