https://www.taxtmi.com/caselaws?id=28939 The court ruled in favor of the assessee, allowing legal expenses as business expenditure under the Income Tax Act, 1961, even if not directly related to the partnership business, as they were incurred to protect the income source. The court held the expenses were revenue in character, not capital, as they maintained an existing capital asset. Additionally, the deduction of mesne profits decreed in a partition suit was permitted, with the liability accruing after the court judgment. The Department was directed to pay the assessee's costs, including counsel's fee. en-us Tue, 15 Jun 1982 00:00:00 +0530 Mon, 08 Mar 2010 17:24:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28939 The court ruled in favor of the assessee, allowing legal expenses as business expenditure under the Income Tax Act, 1961, even if not directly related to the partnership business, as they were incurred to protect the income source. The court held the expenses were revenue in character, not capital, as they maintained an existing capital asset. Additionally, the deduction of mesne profits decreed in a partition suit was permitted, with the liability accruing after the court judgment. The Department was directed to pay the assessee's costs, including counsel's fee. Case-Laws Income Tax Tue, 15 Jun 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28939