ALLEN (H.M. INSPECTOR OF TAXES) v FARQUHARSON BROTHERS AND COMPANY. (1928-1933) 17 TC 59
No. 829.–HIGH COURT OF JUSTICE (KING’S BENCH DIVISION).–
27TH MAY, 1932.
Income Tax, Schedule D – Deduction – Legal costs in connection with Income Tax appeal to Commissioners – Income Tax Act, 1918 (8 & 9 Geo. V, c. 40), Rules applicable to Cases I and II of Schedule D, Rules 3(a) and 3(e).
The Respondents claimed as a deduction in computing their profits for Income Tax purposes the cost of employing solicitors and counsel in connection with an appeal to the Special Commissioners against assessments to Income Tax under Schedule D in respect of their trading profits.
Held, that the legal costs were not an admissible deduction.