https://www.taxtmi.com/caselaws?id=6416 Expenditure incurred by a trader on criminal proceedings is deductible as business expenditure if it is laid out wholly and exclusively for the business and the proceedings arise out of a transaction incidental to that business. The distinction between civil and criminal litigation is not decisive; bona fide legal costs incurred to protect business interests may fall within the allowance provision. Where the Tribunal found the expenditure to have been actually incurred for business purposes, the one-third apportionment did not justify denial of the deduction on the reference. The business deduction was therefore sustained, and the challenge to the apportionment failed. en-us Wed, 07 Mar 1973 00:00:00 +0530 Thu, 20 Jul 2023 12:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6416 Expenditure incurred by a trader on criminal proceedings is deductible as business expenditure if it is laid out wholly and exclusively for the business and the proceedings arise out of a transaction incidental to that business. The distinction between civil and criminal litigation is not decisive; bona fide legal costs incurred to protect business interests may fall within the allowance provision. Where the Tribunal found the expenditure to have been actually incurred for business purposes, the one-third apportionment did not justify denial of the deduction on the reference. The business deduction was therefore sustained, and the challenge to the apportionment failed. Case-Laws Income Tax Wed, 07 Mar 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6416