Business promotion expenditure claimed as commission or...

Business promotion expenditure claimed as commission or incentive payments is deductible under section 37(1) only when the taxpayer proves its nature, actual incurrence and business allowability with adequate particulars and supporting evidence. The article notes that failure to provide recipient details, payment amounts, dates, modes of payment or documentary support defeats the claim. Increased turnover alone does not establish compliance with the statutory requirements. The disallowance rested on the unproven genuineness and allowability of the expenditure, rather than solely on recipients being private persons instead of public servants; the claimed deduction was therefore disallowed.