https://www.taxtmi.com/caselaws?id=6967 Legal expenses incurred in criminal proceedings may be deducted in computing business profits where the proceedings arise from and are closely connected with the assessee's business operations. Deductibility depends on the nature and purpose of the defence, rather than the eventual result of the prosecution. Where allegations concern the quality and standard of manufactured goods, expenditure incurred to defend the product's quality and preserve business goodwill is incurred in the course of business. Such defence expenditure is therefore allowable as a business deduction. 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 criminal proceedings may be deducted in computing business profits where the proceedings arise from and are closely connected with the assessee's business operations. Deductibility depends on the nature and purpose of the defence, rather than the eventual result of the prosecution. Where allegations concern the quality and standard of manufactured goods, expenditure incurred to defend the product's quality and preserve business goodwill is incurred in the course of business. Such defence expenditure is therefore allowable as a business deduction. Case-Laws Income Tax Tue, 27 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6967