https://www.taxtmi.com/caselaws?id=35893 Expenditure incurred in connection with a Commission of Inquiry was deductible as revenue expenditure because the inquiry also concerned the administration of the assessee-company and the outlay was made to protect its reputation, credit, assets and business interests. The court treated the spending as commercially expedient and not as a penalty for breach of law, holding that the ultimate result of the inquiry was irrelevant. For the same reason, the law department's expenditure linked to the inquiry was also deductible, since it formed part of the overall business-related response to protect the company's interests. The inquiry-related expenditure was therefore allowable as a business deduction. en-us Wed, 18 Feb 1981 00:00:00 +0530 Wed, 17 Mar 2010 16:08:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35893 Expenditure incurred in connection with a Commission of Inquiry was deductible as revenue expenditure because the inquiry also concerned the administration of the assessee-company and the outlay was made to protect its reputation, credit, assets and business interests. The court treated the spending as commercially expedient and not as a penalty for breach of law, holding that the ultimate result of the inquiry was irrelevant. For the same reason, the law department's expenditure linked to the inquiry was also deductible, since it formed part of the overall business-related response to protect the company's interests. The inquiry-related expenditure was therefore allowable as a business deduction. Case-Laws Income Tax Wed, 18 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35893