https://www.taxtmi.com/caselaws?id=8157 Litigation expenses incurred to recover or protect a business asset are deductible if laid out wholly and exclusively for business purposes, and surplus funds retained as fixed deposits do not lose their character as business assets merely because they represent reserves or past profits. On that basis, civil recovery expenses for the fixed deposit and related dues were allowable. Criminal prosecution expenses against a managing agent, however, were not deductible because such proceedings are directed primarily to punishment and were not shown to have been instituted for recovery or protection of the business asset; any pressure on the accused did not make the expenditure wholly and exclusively business-related. en-us Tue, 30 Mar 1971 00:00:00 +0530 Tue, 31 Mar 2009 16:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8157 Litigation expenses incurred to recover or protect a business asset are deductible if laid out wholly and exclusively for business purposes, and surplus funds retained as fixed deposits do not lose their character as business assets merely because they represent reserves or past profits. On that basis, civil recovery expenses for the fixed deposit and related dues were allowable. Criminal prosecution expenses against a managing agent, however, were not deductible because such proceedings are directed primarily to punishment and were not shown to have been instituted for recovery or protection of the business asset; any pressure on the accused did not make the expenditure wholly and exclusively business-related. Case-Laws Income Tax Tue, 30 Mar 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8157