https://www.taxtmi.com/caselaws?id=186354 Damages and costs paid for deliberate breach of a trading agreement were held not to qualify as expenditure laid out wholly and exclusively for business purposes under Section 10(2)(xii) of the Indian Income-tax Act, 1922. The deduction was confined to outgoings incurred in carrying on the business and earning profits; a payment merely connected with trading activity was insufficient. Because the liability arose from wrongful conduct outside the ordinary course of business and was not incidental to the profit-making process, the amount was not allowable as business expenditure and the issue was answered against the assessee. en-us Tue, 30 Mar 1943 00:00:00 +0630 Thu, 15 Sep 2016 12:14:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186354 Damages and costs paid for deliberate breach of a trading agreement were held not to qualify as expenditure laid out wholly and exclusively for business purposes under Section 10(2)(xii) of the Indian Income-tax Act, 1922. The deduction was confined to outgoings incurred in carrying on the business and earning profits; a payment merely connected with trading activity was insufficient. Because the liability arose from wrongful conduct outside the ordinary course of business and was not incidental to the profit-making process, the amount was not allowable as business expenditure and the issue was answered against the assessee. Case-Laws Income Tax Tue, 30 Mar 1943 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=186354