https://www.taxtmi.com/caselaws?id=5508 Legal expenses incurred for amalgamation of a complementary business were treated as revenue expenditure because the amalgamation was necessary for the smooth and efficient conduct of business and did not bring a capital asset into existence in the assessee's hands. A contribution made for construction of workers' tenements was also treated as revenue expenditure because the housing board retained ownership, no capital asset accrued to the assessee, and the outlay was directed to business efficiency through labour welfare. Both disputed amounts were therefore deductible in computing business income, and the rejection of the reference application was upheld. en-us Thu, 29 Feb 1996 00:00:00 +0530 Mon, 06 Jul 2026 14:41:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5508 Legal expenses incurred for amalgamation of a complementary business were treated as revenue expenditure because the amalgamation was necessary for the smooth and efficient conduct of business and did not bring a capital asset into existence in the assessee's hands. A contribution made for construction of workers' tenements was also treated as revenue expenditure because the housing board retained ownership, no capital asset accrued to the assessee, and the outlay was directed to business efficiency through labour welfare. Both disputed amounts were therefore deductible in computing business income, and the rejection of the reference application was upheld. Case-Laws Income Tax Thu, 29 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5508