1982 (1) TMI 42 - HC - Income Tax

Summary

The Bombay High Court ruled that legal expenses incurred by an investment company to liquidate a mismanaged paper mills were deductible as revenue expenditure. The expenses were deemed necessary to protect the company's capital asset and were not considered capital expenditure. The court cited the decision in CIT v. Malayalam Plantations Ltd. [1964] 53 ITR 140 to support its ruling. The court answered the question in favor of the assessee, with the revenue ordered to pay the costs of the reference.