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1953 (4) TMI 1 - SC - Income TaxWhether in the circumstances of this case the Tribunal was right in holding that the sum of ₹ 10,895 spent in defending the criminal proceeding was an expenditure laid out or expended wholly and exclusively for the purpose of business as contemplated by Section 10(2)(xv) of the Indian Income-tax Act ? Held that:- The deductibility of such 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. Income-tax assessments have to be made for every year and cannot be held up until the final result of a legal proceeding, which may pass through several courts, is announced. We allow the appeal and answer the question referred in the negative.
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