https://www.taxtmi.com/caselaws?id=189964 Litigation expenses incurred in defending a suit arising directly from a money-lending transaction were treated as allowable business expenditure under the Indian Income-tax Act, 1922. The defence was regarded as necessary to protect the assessee's rights as a lender and to preserve the business advantage connected with the loan transaction, rather than as a personal expense. Allegations of fraud and conspiracy did not change the essential business character of the dispute. The expenditure was therefore regarded as incurred solely for the purpose of earning profits from the money-lending business and deductible in favour of the assessee. en-us Fri, 12 Dec 1941 00:00:00 +0630 Fri, 27 Jan 2017 18:46:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189964 Litigation expenses incurred in defending a suit arising directly from a money-lending transaction were treated as allowable business expenditure under the Indian Income-tax Act, 1922. The defence was regarded as necessary to protect the assessee's rights as a lender and to preserve the business advantage connected with the loan transaction, rather than as a personal expense. Allegations of fraud and conspiracy did not change the essential business character of the dispute. The expenditure was therefore regarded as incurred solely for the purpose of earning profits from the money-lending business and deductible in favour of the assessee. Case-Laws Income Tax Fri, 12 Dec 1941 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=189964