https://www.taxtmi.com/caselaws?id=177620 Litigation expenses are deductible under Section 10(2)(xv) only when laid out wholly and exclusively for the purposes of the particular business whose profits are being computed, and the business must have been carried on in the relevant year. Expenditure connected with a separate venture cannot be shifted to another business. Here, the costs related to dissolution of a proposed partnership and recovery of capital were treated as expenses of terminating or protecting an investment, not as expenses incurred in earning profits from the assessee's continuing business. The deduction was therefore unavailable, and the matter was treated as turning on facts rather than raising a referable question of law. en-us Tue, 19 Apr 1949 00:00:00 +0530 Wed, 13 Jan 2016 16:38:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177620 Litigation expenses are deductible under Section 10(2)(xv) only when laid out wholly and exclusively for the purposes of the particular business whose profits are being computed, and the business must have been carried on in the relevant year. Expenditure connected with a separate venture cannot be shifted to another business. Here, the costs related to dissolution of a proposed partnership and recovery of capital were treated as expenses of terminating or protecting an investment, not as expenses incurred in earning profits from the assessee's continuing business. The deduction was therefore unavailable, and the matter was treated as turning on facts rather than raising a referable question of law. Case-Laws Income Tax Tue, 19 Apr 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177620