Deductibility of legal expenses will depend on nature and purpose of legal proceeding in relation to business whose profits are under computation and cannot be affected by final outcome of that proceeding

Deductibility of legal expenses will depend on nature and purpose of legal proceeding in relation to business whose profits are under computation and cannot be affected by final outcome of that proceeding.

In case the legal expenses are in the nature relating to the business of the assessee then the expenses are allowable under section 37(1). - [2010] 8 TAXMANN.COM 268 (MUM. - ITAT)