SHREE MEENAKSHI MILLS LTD., MADURAI vs COMMISSIONER OF INCOME-TAX, MADRAS

The Supreme Court held that under Section 10(2)(xv) of the Income-tax Act, 1922, expenses incurred by a business to resist enforcement of legislative or executive measures affecting its operations are admissible as deductions, even if the proceedings are unsuccessful. The Court emphasized that the nature of the expenditure, aimed at protecting business interests, does not negate its deductibility merely due to failure in litigation. The appeal was allowed, overturning the High Court's decision disallowing the deduction.