https://www.taxtmi.com/caselaws?id=6261 Law charges incurred in connection with proceedings before an Investigation Commission may be deductible as business expenditure if they are laid out wholly and exclusively for the purposes of the business and incurred honestly and reasonably for its preservation or protection. Expenditure to resist proceedings threatening the business, including tax-related proceedings or heavy penalties, can qualify where commercial expediency justifies the outlay. The fact that the proceedings relate to assessment or tax liability does not, by itself, exclude deduction, because reducing tax exposure may preserve business funds and support future profits. On that approach, the charges were allowable under section 10(2)(xv), and the claim was not barred under section 10(1). en-us Tue, 17 Aug 1971 00:00:00 +0530 Wed, 03 Aug 2016 18:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6261 Law charges incurred in connection with proceedings before an Investigation Commission may be deductible as business expenditure if they are laid out wholly and exclusively for the purposes of the business and incurred honestly and reasonably for its preservation or protection. Expenditure to resist proceedings threatening the business, including tax-related proceedings or heavy penalties, can qualify where commercial expediency justifies the outlay. The fact that the proceedings relate to assessment or tax liability does not, by itself, exclude deduction, because reducing tax exposure may preserve business funds and support future profits. On that approach, the charges were allowable under section 10(2)(xv), and the claim was not barred under section 10(1). Case-Laws Income Tax Tue, 17 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6261