https://www.taxtmi.com/caselaws?id=36918 Litigation expenses, consultation fees and travelling costs incurred to defend company resolutions recasting the articles of association and appointing managing agents qualify as revenue expenditure where they protect the ordinary conduct and continuity of business. Defending the validity of the articles was necessary to prevent disruption of business affairs and was incurred wholly and exclusively for business purposes. The expenditure does not become capital merely because it concerns corporate governance; it remains deductible where the litigation neither alters the capital structure nor acquires or enhances a capital asset. Accordingly, deduction is available under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Fri, 08 Feb 1980 00:00:00 +0530 Thu, 25 Mar 2010 13:03:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36918 Litigation expenses, consultation fees and travelling costs incurred to defend company resolutions recasting the articles of association and appointing managing agents qualify as revenue expenditure where they protect the ordinary conduct and continuity of business. Defending the validity of the articles was necessary to prevent disruption of business affairs and was incurred wholly and exclusively for business purposes. The expenditure does not become capital merely because it concerns corporate governance; it remains deductible where the litigation neither alters the capital structure nor acquires or enhances a capital asset. Accordingly, deduction is available under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Fri, 08 Feb 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36918