https://www.taxtmi.com/caselaws?id=180537 Legal expenses bona fide incurred to resist a compulsory winding-up petition are revenue expenditure if they are wholly and exclusively laid out for the business. Where the expenditure is directed to preserving the company's ability to continue trading, and does not create a new asset or improve a capital asset, it is treated as incurred to protect the business structure rather than for capital purposes. On that basis, the costs of defending proceedings threatening the continued existence of the undertaking are admissible as a business deduction. en-us Tue, 25 Sep 1962 00:00:00 +0530 Tue, 29 Mar 2016 10:48:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180537 Legal expenses bona fide incurred to resist a compulsory winding-up petition are revenue expenditure if they are wholly and exclusively laid out for the business. Where the expenditure is directed to preserving the company's ability to continue trading, and does not create a new asset or improve a capital asset, it is treated as incurred to protect the business structure rather than for capital purposes. On that basis, the costs of defending proceedings threatening the continued existence of the undertaking are admissible as a business deduction. Case-Laws Income Tax Tue, 25 Sep 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180537