https://www.taxtmi.com/caselaws?id=28076 Litigation expenses incurred by a company in defending suits challenging resolutions affecting its articles of association and managing agency were treated as deductible revenue expenditure. The court reasoned that the defence was directed to protecting the continuance and smooth running of the business, and that expenses incurred to preserve an existing business arrangement fall within expenditure wholly and exclusively for business purposes. They were not capital in nature because they did not create a new asset, secure an enduring advantage, or cure title to capital. The assessee was therefore entitled to deduct the expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Fri, 13 Jan 1984 00:00:00 +0530 Wed, 17 Feb 2010 18:22:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28076 Litigation expenses incurred by a company in defending suits challenging resolutions affecting its articles of association and managing agency were treated as deductible revenue expenditure. The court reasoned that the defence was directed to protecting the continuance and smooth running of the business, and that expenses incurred to preserve an existing business arrangement fall within expenditure wholly and exclusively for business purposes. They were not capital in nature because they did not create a new asset, secure an enduring advantage, or cure title to capital. The assessee was therefore entitled to deduct the expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Fri, 13 Jan 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28076