https://www.taxtmi.com/caselaws?id=189981 Whether litigation costs are revenue or capital depends on whether the suits preserved an existing title or sought to create or increase capital assets. Expenditure incurred to restore or secure the assessee's pre-existing title in buses and route rights (including claims framed as equivalent share rights) was held revenue in character and deductible as wholly and exclusively for the business. By contrast, costs incurred to obtain new share allotments or to create/acquire new capital assets are capital and not deductible. Shareholder litigation limited to internal management is not deductible, whereas suits to prevent unlawful minority ouster that protect the minority's capital asset may be deductible if shown wholly and exclusively for the business. en-us Thu, 16 Nov 1961 00:00:00 +0530 Sat, 28 Jan 2017 12:56:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189981 Whether litigation costs are revenue or capital depends on whether the suits preserved an existing title or sought to create or increase capital assets. Expenditure incurred to restore or secure the assessee's pre-existing title in buses and route rights (including claims framed as equivalent share rights) was held revenue in character and deductible as wholly and exclusively for the business. By contrast, costs incurred to obtain new share allotments or to create/acquire new capital assets are capital and not deductible. Shareholder litigation limited to internal management is not deductible, whereas suits to prevent unlawful minority ouster that protect the minority's capital asset may be deductible if shown wholly and exclusively for the business. Case-Laws Income Tax Thu, 16 Nov 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189981