https://www.taxtmi.com/caselaws?id=189980 Litigation expenses paid by a newspaper company to defend contempt proceedings against its editor and printer were held not deductible because they were not shown to have been incurred wholly and exclusively for the purpose of earning business profits. A mere business connection, incidental indemnity, or moral obligation was insufficient; the expenditure had to be really incidental to the earning of profits. On the materials before the taxing authority, there was no basis to treat the payment as laid out to augment profits, so the deduction claim failed under the business-expense provision. en-us Wed, 14 Jul 1937 00:00:00 +0530 Sat, 28 Jan 2017 12:43:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189980 Litigation expenses paid by a newspaper company to defend contempt proceedings against its editor and printer were held not deductible because they were not shown to have been incurred wholly and exclusively for the purpose of earning business profits. A mere business connection, incidental indemnity, or moral obligation was insufficient; the expenditure had to be really incidental to the earning of profits. On the materials before the taxing authority, there was no basis to treat the payment as laid out to augment profits, so the deduction claim failed under the business-expense provision. Case-Laws Income Tax Wed, 14 Jul 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189980