https://www.taxtmi.com/caselaws?id=289325 Litigation expenditure incurred in defending a partner against criminal prosecution for alleged Foreign Exchange Regulation Act contravention was held not to be laid out wholly and exclusively for the firm's business under section 10(2)(xv) of the Indian Income Tax Act, 1922. Expenditure on civil proceedings to protect business interests may qualify, but defence costs for a partner facing a personal criminal charge were treated as directed to avoiding conviction and imprisonment, not to advancing the assessee's business. A partner was not treated as an employee of the firm, and any incidental benefit to the firm's reputation did not change the character of the outlay. The deduction was disallowed. en-us Mon, 02 Mar 1970 00:00:00 +0530 Sat, 25 Jul 2020 09:49:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289325 Litigation expenditure incurred in defending a partner against criminal prosecution for alleged Foreign Exchange Regulation Act contravention was held not to be laid out wholly and exclusively for the firm's business under section 10(2)(xv) of the Indian Income Tax Act, 1922. Expenditure on civil proceedings to protect business interests may qualify, but defence costs for a partner facing a personal criminal charge were treated as directed to avoiding conviction and imprisonment, not to advancing the assessee's business. A partner was not treated as an employee of the firm, and any incidental benefit to the firm's reputation did not change the character of the outlay. The deduction was disallowed. Case-Laws Income Tax Mon, 02 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289325