Deduction u/s 10(2)(xv)/37(1) of Income-tax Act, 1922/1961.

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..... in 82 ITR 166. The Supreme Court in the above cases have held that the law charges incurred in connection with the proceedings before income-tax investigation Commission are allowable as deduction under section 10(2)(xv)/37(1) of Income-tax Act, 1922/1961. Even otherwise such expenditure is to be treated as incidental to the business and necessitated or justified by commercial expediency. The exp .....

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..... mbay High Court in the case of R.B Bansi Lal Spinning and Weaving Mills (81 ITR 34) that such litigation expenses were allowable as deduction under section 10(2)(xv)/37 of the 1922/1961 Acts. In view of the above decisions, all legal accountancy expenses incurred in connection with the proceedings before the income-tax authorities right upto the stage of the Supreme Court will have to be allowed .....

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