1987 (3) TMI 87 - HC - Income Tax

Summary

The High Court of Bombay ruled that legal charges incurred in a dispute over compensation for acquiring a capital asset are not deductible as revenue expenditure. The judgment was delivered by Judge S. P. Bharucha. The court held in favor of the Revenue and disallowed the deduction claimed by the assessee. The case reference was made under section 256(1) of the Income-tax Act. The judgment is in line with a previous decision in Life Insurance Corporation of India v. CIT [1979] 119 ITR 900.