https://www.taxtmi.com/caselaws?id=188907 Litigation expenses are deductible as business expenditure only where they are incurred in the assessee's character as trader and arise out of, or are incidental to, the carrying on of its business. Costs incurred in defending a shareholder's suit were treated as allowable because the suit sought reliefs that could threaten the company's business and affairs, making the dispute sufficiently connected with business operations. By contrast, expenses incurred in prosecuting the appeal were not allowable, as the appeal concerned internal shareholder-management procedure and was incurred only to support the chairman's ruling, without a real nexus to the company's business. en-us Wed, 23 Feb 1966 00:00:00 +0530 Tue, 20 Dec 2016 16:08:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188907 Litigation expenses are deductible as business expenditure only where they are incurred in the assessee's character as trader and arise out of, or are incidental to, the carrying on of its business. Costs incurred in defending a shareholder's suit were treated as allowable because the suit sought reliefs that could threaten the company's business and affairs, making the dispute sufficiently connected with business operations. By contrast, expenses incurred in prosecuting the appeal were not allowable, as the appeal concerned internal shareholder-management procedure and was incurred only to support the chairman's ruling, without a real nexus to the company's business. Case-Laws Income Tax Wed, 23 Feb 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188907