https://www.taxtmi.com/caselaws?id=168513 A taxpayer's contribution towards a special bonus paid to employees of a managed company was held deductible as business expenditure because it was incurred on grounds of commercial expediency and to protect and enhance the taxpayer's own profits. Although the payment was not mandated by the managing agency agreement, it formed part of the profit-making process since the taxpayer's commission depended on the managed company's profits. The deduction was allowed as expenditure laid out wholly and exclusively for the purposes of business under Section 10(2)(xv) of the Income-tax Act, 1922, and there was no duplication with the allowance for reasonable bonus under Section 10(2)(x). en-us Wed, 15 Mar 1950 00:00:00 +0530 Tue, 10 Mar 2015 18:26:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168513 A taxpayer's contribution towards a special bonus paid to employees of a managed company was held deductible as business expenditure because it was incurred on grounds of commercial expediency and to protect and enhance the taxpayer's own profits. Although the payment was not mandated by the managing agency agreement, it formed part of the profit-making process since the taxpayer's commission depended on the managed company's profits. The deduction was allowed as expenditure laid out wholly and exclusively for the purposes of business under Section 10(2)(xv) of the Income-tax Act, 1922, and there was no duplication with the allowance for reasonable bonus under Section 10(2)(x). Case-Laws Income Tax Wed, 15 Mar 1950 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168513