https://www.taxtmi.com/caselaws?id=66624 Guarantee commission credited to the Dividend Subvention Fund Account was not deductible as business expenditure because the governing statute required the State Government to guarantee the bonds and debentures without authorising any commission. Although the amounts were credited at the Government's instance and were treated as constructive payment, a Government Order could not override the statute or create a valid legal liability to pay commission. The alleged liability was therefore not legally enforceable, and the disallowance of the deduction was upheld. en-us Wed, 03 Oct 2001 00:00:00 +0530 Sat, 05 Mar 2011 12:13:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66624 Guarantee commission credited to the Dividend Subvention Fund Account was not deductible as business expenditure because the governing statute required the State Government to guarantee the bonds and debentures without authorising any commission. Although the amounts were credited at the Government's instance and were treated as constructive payment, a Government Order could not override the statute or create a valid legal liability to pay commission. The alleged liability was therefore not legally enforceable, and the disallowance of the deduction was upheld. Case-Laws Income Tax Wed, 03 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66624