COMMISSIONER OF INCOME-TAX, MADRAS vs S. DEVARAJ — 1971 PTD 597

Citation: 1971 PTD 597

Court: Madras High Court

Year: 1968

Decision Date: 1968-09-05

Parties: COMMISSIONER OF INCOME-TAX, MADRAS vs S. DEVARAJ

Headnotes

Case cited as 1971 PTD 597

Judgment Text

Court Name: Madras High Court Judge(s): A. Alagiriswa mi, K. Veeraswa mi Title: COMMISSIONER OF INCOME-TAX, MADRAS vs S. DEVARAJ Case No.: Case No. 69 of 1965 Date of Judgment:1968-09-05 Reported As: 1971 PTD 597 Result: N/A JUDGMENT JUDGMENT VEERASWAMI, J.--This reference raises the question whether litigation expenses in defending a suit, in which the status of the assessee was disputed, constituted an expenditure deductible under section 12(2) of the Income-tax Act, 1922. We are concerned with the assessment year 1961-62. The assessee is the adopted son of one Janaki, the wife of a certain Srinivasalu Naidu, who died on November 16, 1937, leaving his widow and a minor son by name Natarajan. This boy also died on May 30, 1946, Srinivasalu Naidu's father, one Narayanaswami Naidu, and Janaki, each adopted a son to himself or herself. The adoption by the widow was on June 10, 1946. Later, Narayanaswami Naidu divided the family properties between himself and his adopted son and the assessee by means of two unregistered documents. At the division the assessee got for his share several shares in joint stock companies. O. S. No. 185 of 1952 was instituted by Janaki disputing the adoption as well as the propriety of the division. The assessee was one of the defendants in the suit, which was dismissed. There was an appeal from the decree, in which also the assessee was successful. For the assessm ent year 1959-60, a sum of Rs. 2,700 was claimed by the assessee as deduction from…

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