TaxTMI 
TaxTMI 
1966 (9) TMI 17
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.... Industries Ltd., relating to the assessment year 1953-54 (previous year from 1st of November, 1951, to 31st of October, 1952). The assessee produced vanaspati vegetable oil. Their directors and principal officers were prosecuted under the Essential Supplies Temporary Powers Act, because the vegetable oil product of the company did not contain 5% til oil, as required by the order made under claus....
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....see's business ?" The main basis of disallowing the claim of the assessee by the revenue authorities was that the expenses in the criminal proceedings, in which the company and its officers were involved, could not be easily dissociated from the purposes of saving the accused person from a possible conviction and imposition of penalty. This reasoning was adopted from the decision of the Supreme C....
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....expenses under section 10(2)(xv) must depend on the nature and purpose of the legal proceeding in relation to the business whose profits are under computation, and cannot be affected by the final outcome of that proceeding." In the instant case, there cannot be any doubt that the nature and purpose of the legal proceedings was in relation to the quality and standard of the manufactured goods of th....