https://www.taxtmi.com/caselaws?id=190931 Legal expenses incurred to resist disciplinary proceedings threatening the carrying on of a trade were deductible as trading expenditure because the decisive test was the taxpayer's object in incurring them. Where the sole purpose was to preserve the trade, the fact that the defence also protected personal reputation did not defeat the wholly and exclusively requirement. Costs of defending disciplinary charges were distinguished from fines and penalties, since deducting such defence costs does not shift punitive liability to the tax community or create an additional sanction. The expenses were therefore incurred for the purposes of the trade and allowable in computing profits. en-us Thu, 17 Jun 1999 00:00:00 +0530 Thu, 09 Mar 2017 17:52:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190931 Legal expenses incurred to resist disciplinary proceedings threatening the carrying on of a trade were deductible as trading expenditure because the decisive test was the taxpayer's object in incurring them. Where the sole purpose was to preserve the trade, the fact that the defence also protected personal reputation did not defeat the wholly and exclusively requirement. Costs of defending disciplinary charges were distinguished from fines and penalties, since deducting such defence costs does not shift punitive liability to the tax community or create an additional sanction. The expenses were therefore incurred for the purposes of the trade and allowable in computing profits. Case-Laws Income Tax Thu, 17 Jun 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190931