https://www.taxtmi.com/caselaws?id=186688 Litigation expenses incurred to defend or assert an existing title to business assets are revenue in nature and deductible if laid out wholly and exclusively for the business. By contrast, expenditure incurred to obtain specific performance of an executory agreement and thereby acquire a new capital asset is capital in nature and not deductible as revenue expenditure. Where a suit contains severable claims, the portion of court-fee attributable to the title claim may be allowed, while the part referable to acquisition of capital rights must be excluded. On the stated facts, the expenses relating to maintenance of title were deductible, but the expenditure linked to acquisition of a capital asset was not. en-us Wed, 10 Oct 1956 00:00:00 +0530 Tue, 27 Sep 2016 17:22:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186688 Litigation expenses incurred to defend or assert an existing title to business assets are revenue in nature and deductible if laid out wholly and exclusively for the business. By contrast, expenditure incurred to obtain specific performance of an executory agreement and thereby acquire a new capital asset is capital in nature and not deductible as revenue expenditure. Where a suit contains severable claims, the portion of court-fee attributable to the title claim may be allowed, while the part referable to acquisition of capital rights must be excluded. On the stated facts, the expenses relating to maintenance of title were deductible, but the expenditure linked to acquisition of a capital asset was not. Case-Laws Income Tax Wed, 10 Oct 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186688