https://www.taxtmi.com/caselaws?id=39341 Deductibility of auditor-defence reimbursements under section 10(2)(xv) depends on whether the expenditure is wholly and exclusively incurred for the company's business and is neither capital nor personal. Expenses reimbursed to auditors for defending disciplinary proceedings concerning their certification of company accounts were personal to the auditors, not incidental to business operations, and did not affect the company's trading activity, assets or reputation. Authorisation under the articles of association does not independently satisfy the statutory deductibility test. The reimbursement is therefore not allowable in computing business income. en-us Thu, 20 Nov 1975 00:00:00 +0530 Thu, 15 Apr 2010 17:03:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39341 Deductibility of auditor-defence reimbursements under section 10(2)(xv) depends on whether the expenditure is wholly and exclusively incurred for the company's business and is neither capital nor personal. Expenses reimbursed to auditors for defending disciplinary proceedings concerning their certification of company accounts were personal to the auditors, not incidental to business operations, and did not affect the company's trading activity, assets or reputation. Authorisation under the articles of association does not independently satisfy the statutory deductibility test. The reimbursement is therefore not allowable in computing business income. Case-Laws Income Tax Thu, 20 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39341