Deduction from Income from other sources u/s 57(iii)

Court :

Brief :
Case Fact: Whether amount paid by the assessee to lawyer for seeking tax and legal implications of an project, for which he was retained by the company to conduct a study and render his opinion, deductible u/s 57(iii)?

Citation :
Bhagwatilal G.Shah Vs. C.I.T.

Decision: Held by Ho"ble Court that it is not necessary that the expenditure is obligatory, only fact to be shown is that the sum has been paid voluntarily and out of commercial expediency for the making or earning of income. The amount spent is not application of income but was incurred wholly and exclusively for making or earning income, hence,deductible u/s 57(iii