National Refinery Pvt. Ltd. v. ACIT (2020)424 ITR 267 / 272 Taxman 160(Bom)(HC)

S.37(1): Business expenditure — Legal expenses —Defend its Directors and shareholders in individual capacities- Disallowance is held to be proper . [ S.260A ]

Dismissing the appeals the Court held that all the authorities had found on the facts that the legal expenses incurred by the assessee were not for the purpose of carrying out its business .  The court while admitting the criminal writ petition had observed that the complaints had been filed so as to settle personal scores between the parties. On the facts the view taken by the authorities including the Tribunal was a plausible view and not perverse. No questions of law arose.( AY.2005-06, 2007-08, 2008-09, 2009-10)


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