https://www.taxtmi.com/caselaws?id=6967 Legal expenses incurred in defending criminal proceedings may be deductible where the prosecution arises out of and is closely connected with the assessee's business operations. The relevant test is the nature and purpose of the proceedings, not the eventual result of the prosecution. On the facts noted, the allegations concerned the quality and standard of the assessee's manufactured goods, and the defence was directed to protecting the product quality and business goodwill. The note states that such expenditure was allowable as a business deduction because it was incurred in the course of defending a matter intimately connected with the business. en-us Tue, 27 Sep 1966 00:00:00 +0530 Sat, 07 Feb 2009 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6967 Legal expenses incurred in defending criminal proceedings may be deductible where the prosecution arises out of and is closely connected with the assessee's business operations. The relevant test is the nature and purpose of the proceedings, not the eventual result of the prosecution. On the facts noted, the allegations concerned the quality and standard of the assessee's manufactured goods, and the defence was directed to protecting the product quality and business goodwill. The note states that such expenditure was allowable as a business deduction because it was incurred in the course of defending a matter intimately connected with the business. Case-Laws Income Tax Tue, 27 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6967