https://www.taxtmi.com/caselaws?id=28749 Legal expenses incurred in defending suits touching the management and application of business funds are deductible where the litigation is incidental to the trade and affects the carrying on of the business as a going concern. The decisive distinction is between expenditure made to protect the business from disputes over its conduct and expenditure aimed at acquiring, curing, or safeguarding capital rights. On the facts described, allegations of mismanagement, dissipation of assets, and breach of contract relating to shareholding were intrinsically connected with business operations, so the expenses were revenue in character and allowable as business expenditure. en-us Tue, 23 Mar 1982 00:00:00 +0530 Thu, 25 Feb 2010 14:46:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28749 Legal expenses incurred in defending suits touching the management and application of business funds are deductible where the litigation is incidental to the trade and affects the carrying on of the business as a going concern. The decisive distinction is between expenditure made to protect the business from disputes over its conduct and expenditure aimed at acquiring, curing, or safeguarding capital rights. On the facts described, allegations of mismanagement, dissipation of assets, and breach of contract relating to shareholding were intrinsically connected with business operations, so the expenses were revenue in character and allowable as business expenditure. Case-Laws Income Tax Tue, 23 Mar 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28749