https://www.taxtmi.com/caselaws?id=26118 Expenditure is deductible only when it is wholly and exclusively incurred for business purposes. Costs connected with fictitious transactions and irregularities do not qualify as revenue expenditure, even if claimed as protecting the business or its goodwill, and are therefore disallowable. By contrast, bona fide reorganisation expenses, including the appointment of a managing director, reconstruction of the board, and other measures taken to continue the business, may be allowable if incurred for the business and not tied to disallowed irregular outgoings. The exact nature of the solicitors' bills was to be examined so that only the disallowable items linked to fictitious transactions and irregularities would be excluded. en-us Mon, 11 Jul 1983 00:00:00 +0530 Wed, 03 Feb 2010 10:01:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26118 Expenditure is deductible only when it is wholly and exclusively incurred for business purposes. Costs connected with fictitious transactions and irregularities do not qualify as revenue expenditure, even if claimed as protecting the business or its goodwill, and are therefore disallowable. By contrast, bona fide reorganisation expenses, including the appointment of a managing director, reconstruction of the board, and other measures taken to continue the business, may be allowable if incurred for the business and not tied to disallowed irregular outgoings. The exact nature of the solicitors' bills was to be examined so that only the disallowable items linked to fictitious transactions and irregularities would be excluded. Case-Laws Income Tax Mon, 11 Jul 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26118