https://www.taxtmi.com/caselaws?id=39802 Legal expenses incurred to defend a company's nominee or managing director in criminal proceedings arising from business operations may be deductible where, on a practical and commercial view, the expenditure is incurred wholly and exclusively for the business. The governing test is whether the proceedings are sufficiently connected with the assessee's business and whether the defence protects the business interest and reputation rather than the individual's personal position. On the stated facts, the nominee acted in a representative capacity for the company, so the defence costs were treated as business expenditure and allowed as a deduction. en-us Mon, 10 Sep 1973 00:00:00 +0530 Tue, 20 Apr 2010 13:23:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39802 Legal expenses incurred to defend a company's nominee or managing director in criminal proceedings arising from business operations may be deductible where, on a practical and commercial view, the expenditure is incurred wholly and exclusively for the business. The governing test is whether the proceedings are sufficiently connected with the assessee's business and whether the defence protects the business interest and reputation rather than the individual's personal position. On the stated facts, the nominee acted in a representative capacity for the company, so the defence costs were treated as business expenditure and allowed as a deduction. Case-Laws Income Tax Mon, 10 Sep 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39802