https://www.taxtmi.com/caselaws?id=189979 Legal expenses incurred by a company in defending its branch manager against a criminal breach of trust charge arising from a transaction in the ordinary course of business were treated as expenditure laid out wholly and exclusively for business purposes. The governing test was the nature and purpose of the proceeding in relation to the business, including whether the defence was undertaken to protect the company's business reputation from an employee's act connected with normal business operations. Distinctions drawn from cases involving a proprietor's or partner's personal criminal prosecution were applied, and the expenditure was held deductible under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Mon, 08 Mar 1965 00:00:00 +0530 Sat, 28 Jan 2017 12:39:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189979 Legal expenses incurred by a company in defending its branch manager against a criminal breach of trust charge arising from a transaction in the ordinary course of business were treated as expenditure laid out wholly and exclusively for business purposes. The governing test was the nature and purpose of the proceeding in relation to the business, including whether the defence was undertaken to protect the company's business reputation from an employee's act connected with normal business operations. Distinctions drawn from cases involving a proprietor's or partner's personal criminal prosecution were applied, and the expenditure was held deductible under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Mon, 08 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189979