1962 (4) TMI 131 - HC - Income Tax

Summary

The High Court of Allahabad held that the expenditure of Rs. 8,600 on fees for chartered accountants and lawyers was not a permissible deduction under section 10(2)(xv) of the Indian Income Tax Act. The Tribunal's decision was based on precedents that legal and accountancy expenses incurred to reduce an assessment are not considered to be wholly and exclusively for business purposes. The reference was returned to the Income Tax Appellate Tribunal with the answer that the deduction was not permissible. The department was awarded costs of Rs. 200.