https://www.taxtmi.com/caselaws?id=37795 Legal expenses in civil proceedings are deductible only if they are shown to have been incurred wholly and exclusively for the assessee's business and to have a direct business nexus. Here, the company failed to explain why it resisted a share transfer, so reliance on its articles of association was insufficient to prove business purpose. The expense incurred in opposing the appointment of a Government inspector also lacked the required bona fide business connection, as the proper course was to meet the inquiry and demonstrate regular conduct. Both deductions were therefore disallowed under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Mon, 12 Jul 1976 00:00:00 +0530 Thu, 01 Apr 2010 11:45:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37795 Legal expenses in civil proceedings are deductible only if they are shown to have been incurred wholly and exclusively for the assessee's business and to have a direct business nexus. Here, the company failed to explain why it resisted a share transfer, so reliance on its articles of association was insufficient to prove business purpose. The expense incurred in opposing the appointment of a Government inspector also lacked the required bona fide business connection, as the proper course was to meet the inquiry and demonstrate regular conduct. Both deductions were therefore disallowed under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Mon, 12 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37795