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TMI Blog1978 (2) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee claimed legal expenses of Rs. 6,555 and the same were debited in the profit and loss account. The learned ITO pointed out as under: "............. it is found that the expenses are not related to the business. These expenses are related to some Vidya Devi case and Motor Expenses, as such the expenses claimed by the assessee at Rs. 6,555 is disallowed." Thus the learned ITO disallowed the claim on the sole ground that the expenses were not related to the business. 3. Before the learned AAC it was contended that Shri Mohanlal Khandelwal was one of the employees of the assessee. The assessee sent Shri Mohanlal Khandelwal outside in connection with business. During the course of business tour Shri Khandelwal met with a fatal m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Shri Mohanlal had died in the discharge of his duties. As a matter of fact, Shri Mohanlal was sent by the assessee in connection with the business and at that time he met with a fatal accident. In order to safeguard the interest of an employee and to keep good-will of the shop, the assessee was under an obligation to prosecute the claim which was filed by the widow of late Mohanlal Khandelwal. The claim could only be made by the widow deceased and as such the assessee under law could not file the claim. The claim, no doubt, was made in the name of the lady and entire litigation expenses were incurred by the assessee. It is not the case of the Department that the expenses were not incurred by the assessee in the said litigation. Thus it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delwal to Baroda in connection with the business. Unfortunately, at Baroda he met with a fatal accident. After the death of Khandelwal, his widow was the only competent person who could make a claim before the Court of Motor Accident Claims Tribunal, Baroda. Accordingly, the lady made the claim. The matter was contested. For litigation, a payment of Rs. 2,998.78 was paid to an Advocate. The Motor expenses were incurred by the lady at Rs. 1,765. The assessee also had to pay a fee of Rs. 30 to Sh. Ratanalal Advocate. In connection with Sumerpur case, the assessee had to pay a fee of Rs. 562. In the case of Sumerpur at Jodhpur, the assessee had again to pay Rs. 675. The assessee also paid litigation expenses in the case of Bhanwalal at Rs. 300 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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