https://www.taxtmi.com/caselaws?id=193304 Where a company pays a director's legal defence costs in connection with a benefit provided to him, those sums are taxable as a perquisite and emolument of office under Schedule E. The charge is measured by the company's actual expenditure in providing the benefit under the relevant provisions of the Income Tax Act 1952, not by the amount the director would hypothetically have spent personally. Any countervailing deduction depends on the statutory conditions for that deduction, and the assessment is not reduced by a notional personal outlay. en-us Tue, 02 Jul 1963 00:00:00 +0530 Sat, 22 Jul 2017 13:27:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193304 Where a company pays a director's legal defence costs in connection with a benefit provided to him, those sums are taxable as a perquisite and emolument of office under Schedule E. The charge is measured by the company's actual expenditure in providing the benefit under the relevant provisions of the Income Tax Act 1952, not by the amount the director would hypothetically have spent personally. Any countervailing deduction depends on the statutory conditions for that deduction, and the assessment is not reduced by a notional personal outlay. Case-Laws Income Tax Tue, 02 Jul 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193304