https://www.taxtmi.com/caselaws?id=39127 Expenditure incurred wholly and exclusively for business to contest or discharge a trading liability remains revenue in nature, so litigation expenses, borrowing interest linked to that liability, and incidental travelling costs were treated as deductible. Amounts received under compromises relating to the sugar mill were treated as taxable receipts, following the earlier view on the same facts. Unabsorbed business loss could not be carried forward against lease receipts because the receipts were not business income and the venture had ceased to be a running commercial business. Interest on borrowings used to acquire business shares was deductible, but depreciation on the alleged 1/6th share in the factory and the related written down value claim were rejected. en-us Fri, 05 May 1972 00:00:00 +0530 Tue, 20 Jan 2026 14:38:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39127 Expenditure incurred wholly and exclusively for business to contest or discharge a trading liability remains revenue in nature, so litigation expenses, borrowing interest linked to that liability, and incidental travelling costs were treated as deductible. Amounts received under compromises relating to the sugar mill were treated as taxable receipts, following the earlier view on the same facts. Unabsorbed business loss could not be carried forward against lease receipts because the receipts were not business income and the venture had ceased to be a running commercial business. Interest on borrowings used to acquire business shares was deductible, but depreciation on the alleged 1/6th share in the factory and the related written down value claim were rejected. Case-Laws Income Tax Fri, 05 May 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39127