Legal expense for complain against directors in individual capacity not allowable

National Refinery Pvt. Ltd. Vs ACIT (Bombay High Court)

Legal expenses incurred to protect the Directors of the company in respect of the complaints filed against them in their individual capacity will not allowed under section 37 as business expenses.

The issue under consideration is that whether on the facts and in the circumstances of the case and in law, the Tribunal erred in disallowing the claim of legal expenses?

The appellant ass

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