https://www.taxtmi.com/caselaws?id=28983 Litigation expenses incurred in partnership proceedings were held allowable as business expenditure where the suit was substantially directed to protecting, preserving, and recovering firm assets, including allegations of mismanagement, misappropriation, and fraudulent transfer. The decisive test applied was whether the expenditure was laid out wholly and exclusively for the purpose of the assessee's business. On the facts, the litigation was not treated as a mere private dispute between partners, and the assessee's group also obtained a larger share of assets. The expenses were therefore connected with the business and deductible under section 10(2)(xv). en-us Wed, 07 Oct 1981 00:00:00 +0530 Tue, 09 Mar 2010 12:03:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28983 Litigation expenses incurred in partnership proceedings were held allowable as business expenditure where the suit was substantially directed to protecting, preserving, and recovering firm assets, including allegations of mismanagement, misappropriation, and fraudulent transfer. The decisive test applied was whether the expenditure was laid out wholly and exclusively for the purpose of the assessee's business. On the facts, the litigation was not treated as a mere private dispute between partners, and the assessee's group also obtained a larger share of assets. The expenses were therefore connected with the business and deductible under section 10(2)(xv). Case-Laws Income Tax Wed, 07 Oct 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28983