https://www.taxtmi.com/caselaws?id=9318 Litigation expenses are deductible only when the dispute arises out of, or is incidental to, the business and the expenditure is wholly and exclusively for that business. On that basis, the amount retained from the assessee's association contribution was not deductible because it was treated as a capital contribution and not shown to be revenue expenditure or stock-in-trade cost. Legal fees incurred in defending a civil suit brought by the former managing director were allowable because they protected the company's business interests. Legal fees incurred in prosecuting a criminal complaint over alleged misappropriation of company funds were also allowable, as criminal proceedings connected with recovery of business funds are not excluded from deduction. en-us Wed, 08 May 1974 00:00:00 +0530 Sun, 21 Jun 2009 18:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9318 Litigation expenses are deductible only when the dispute arises out of, or is incidental to, the business and the expenditure is wholly and exclusively for that business. On that basis, the amount retained from the assessee's association contribution was not deductible because it was treated as a capital contribution and not shown to be revenue expenditure or stock-in-trade cost. Legal fees incurred in defending a civil suit brought by the former managing director were allowable because they protected the company's business interests. Legal fees incurred in prosecuting a criminal complaint over alleged misappropriation of company funds were also allowable, as criminal proceedings connected with recovery of business funds are not excluded from deduction. Case-Laws Income Tax Wed, 08 May 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9318