https://www.taxtmi.com/caselaws?id=38670 Litigation expenditure is capital when incurred to create, cure or complete title to a capital asset, but revenue when incurred merely to protect an existing business or its assets. Applying that test, expenses relating to the assessee's own suit for specific performance of the renewal clause were directed toward securing a further lease term and completing title to capital, while only the litigation initiated by the State had a protective character. On the admitted facts, apportionment on a 50% basis was justified, and that portion was not deductible as a revenue expense. en-us Tue, 18 Nov 1975 00:00:00 +0530 Thu, 08 Apr 2010 12:12:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38670 Litigation expenditure is capital when incurred to create, cure or complete title to a capital asset, but revenue when incurred merely to protect an existing business or its assets. Applying that test, expenses relating to the assessee's own suit for specific performance of the renewal clause were directed toward securing a further lease term and completing title to capital, while only the litigation initiated by the State had a protective character. On the admitted facts, apportionment on a 50% basis was justified, and that portion was not deductible as a revenue expense. Case-Laws Income Tax Tue, 18 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38670