1966 (9) TMI 21 - HC - Income Tax

Tribunal was right in holding that the sum spent in the litigation over alleged infringement of patent rights was an expenditure allowable under s. 10(2)(xv) of the IT Act.

Summary

The High Court of Patna ruled in favor of the assessee, Rohtas Industries Limited, allowing the deduction of Rs. 9,062 for expenses incurred in a patent rights infringement case. The expenditure was deemed deductible under section 10(2)(xv) of the Indian Income-tax Act as it was incurred exclusively for business purposes. The judgment was made in Tax Case No. 12 of 1965, with no order for costs.