https://www.taxtmi.com/caselaws?id=177619 Litigation expenses incurred after a speculative gur business had been discontinued were held not to be deductible as business expenditure because no business was carried on during the relevant assessment years. The facts showed no fresh transactions after the Government ban, no new business activity, and only winding up, realisation of assets, and settlement of pending contracts. The claim that the business was merely dormant or suspended was rejected, as the material pointed to cessation rather than temporary inactivity. On that basis, expenses incurred in defending civil suits after discontinuance were outside the course of an existing business and were not allowable under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Wed, 04 Apr 1962 00:00:00 +0530 Wed, 13 Jan 2016 16:31:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177619 Litigation expenses incurred after a speculative gur business had been discontinued were held not to be deductible as business expenditure because no business was carried on during the relevant assessment years. The facts showed no fresh transactions after the Government ban, no new business activity, and only winding up, realisation of assets, and settlement of pending contracts. The claim that the business was merely dormant or suspended was rejected, as the material pointed to cessation rather than temporary inactivity. On that basis, expenses incurred in defending civil suits after discontinuance were outside the course of an existing business and were not allowable under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Wed, 04 Apr 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177619