https://www.taxtmi.com/caselaws?id=189830 Litigation expenses incurred after a business had already acquired possession and title to buses under an unconditional sale were treated as revenue expenditure, not part of the cost of acquisition. Applying the Sale of Goods Act, title to specific goods in a deliverable state passed when the contract was made, so the later dispute did not convert the defence costs into capital expenditure. Expenses incurred to resist hostile claims and preserve an existing business asset were held to relate to the conduct and protection of the business, with no new asset created or capital structure improved. The expenditure was therefore allowable as a deduction under section 10(2)(xv) of the Income-tax Act. en-us Mon, 12 Mar 1951 00:00:00 +0530 Sat, 21 Jan 2017 18:32:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189830 Litigation expenses incurred after a business had already acquired possession and title to buses under an unconditional sale were treated as revenue expenditure, not part of the cost of acquisition. Applying the Sale of Goods Act, title to specific goods in a deliverable state passed when the contract was made, so the later dispute did not convert the defence costs into capital expenditure. Expenses incurred to resist hostile claims and preserve an existing business asset were held to relate to the conduct and protection of the business, with no new asset created or capital structure improved. The expenditure was therefore allowable as a deduction under section 10(2)(xv) of the Income-tax Act. Case-Laws Income Tax Mon, 12 Mar 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189830