https://www.taxtmi.com/caselaws?id=6250 Litigation expenses incurred in defending a civil suit were held to be revenue expenditure where, judged by their nature and purpose, they were honestly and reasonably incurred to protect or promote the assessee's business. The assessee was drawn into the dispute because it was working the quarry as part of its business, and the claim for damages arose from that activity. The expenditure was connected with the conduct and protection of the business and was not incurred to acquire or improve a capital asset. Failure of the litigation did not alter its character, and the was allowable as wholly and exclusively for business purposes. en-us Thu, 29 Jul 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6250 Litigation expenses incurred in defending a civil suit were held to be revenue expenditure where, judged by their nature and purpose, they were honestly and reasonably incurred to protect or promote the assessee's business. The assessee was drawn into the dispute because it was working the quarry as part of its business, and the claim for damages arose from that activity. The expenditure was connected with the conduct and protection of the business and was not incurred to acquire or improve a capital asset. Failure of the litigation did not alter its character, and the was allowable as wholly and exclusively for business purposes. Case-Laws Income Tax Thu, 29 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6250