https://www.taxtmi.com/caselaws?id=422064 Expenditure incurred in defending criminal proceedings may be deductible under section 37(1) where it is laid out wholly and exclusively for the purposes of the assessee's business. On the stated facts, legal, professional, travelling and boarding expenses relating to defence of the assessee's directors and their relatives in criminal cases arising out of a related telecom entity were treated as business expenditure because the common management and business connection showed a protective business purpose. The criminal nature of the proceedings did not by itself bar deduction. The disallowance was therefore deleted. en-us Tue, 25 Jan 2022 00:00:00 +0530 Fri, 06 May 2022 17:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422064 Expenditure incurred in defending criminal proceedings may be deductible under section 37(1) where it is laid out wholly and exclusively for the purposes of the assessee's business. On the stated facts, legal, professional, travelling and boarding expenses relating to defence of the assessee's directors and their relatives in criminal cases arising out of a related telecom entity were treated as business expenditure because the common management and business connection showed a protective business purpose. The criminal nature of the proceedings did not by itself bar deduction. The disallowance was therefore deleted. Case-Laws Income Tax Tue, 25 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422064