https://www.taxtmi.com/caselaws?id=29441 Legal expenses incurred by an investment company in proceedings relating to liquidation of an investee company were held to be revenue expenditure because they were incurred to protect an existing investment and prevent further calls on share capital. The court applied the principle that expenditure laid out in the course of business for preservation of a business asset or protection of existing assets is deductible as revenue expenditure, unless it creates a new asset or enduring capital advantage. As the legal costs did not bring any such capital benefit, they were allowable and not to be treated as capital expenditure. en-us Thu, 21 Jan 1982 00:00:00 +0530 Fri, 12 Mar 2010 18:20:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29441 Legal expenses incurred by an investment company in proceedings relating to liquidation of an investee company were held to be revenue expenditure because they were incurred to protect an existing investment and prevent further calls on share capital. The court applied the principle that expenditure laid out in the course of business for preservation of a business asset or protection of existing assets is deductible as revenue expenditure, unless it creates a new asset or enduring capital advantage. As the legal costs did not bring any such capital benefit, they were allowable and not to be treated as capital expenditure. Case-Laws Income Tax Thu, 21 Jan 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29441