Bombay High Court Upholds Revenue Nature of Settlement Charges and Legal Expenses in Consent Decree — Expenditure Incurred to Remove Obstruction in Business Held Deductible Under Income Tax Act, 1961. The court held that payments made to settle litigation and remove a hindrance in the conduct of business are revenue expenditure, not capital, as the assessee already owned the business and premises....
The case involved a reference under Section 256(1) of the Income Tax Act, 1961, at the instance of the Revenue, challenging the Tribunal's decision to allow deduction of settlement charges and legal e...
