https://www.taxtmi.com/caselaws?id=169588 A genuine commission paid to an employee as part of remuneration, and not merely salary, is tested under the special provision governing employee bonus or commission. Allowability depends on whether the payment is reasonable in light of the employee's pay and service conditions, the business profits for the year, and comparable practice in similar businesses. Reasonableness must be judged from the standpoint of commercial expediency and a prudent businessman, taking all relevant circumstances into account. Applying that approach, the employee's importance to the business and the need to retain his services supported the deduction, and the partial disallowance was not justified. en-us Fri, 04 Sep 1964 00:00:00 +0530 Mon, 27 Apr 2015 12:23:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169588 A genuine commission paid to an employee as part of remuneration, and not merely salary, is tested under the special provision governing employee bonus or commission. Allowability depends on whether the payment is reasonable in light of the employee's pay and service conditions, the business profits for the year, and comparable practice in similar businesses. Reasonableness must be judged from the standpoint of commercial expediency and a prudent businessman, taking all relevant circumstances into account. Applying that approach, the employee's importance to the business and the need to retain his services supported the deduction, and the partial disallowance was not justified. Case-Laws Income Tax Fri, 04 Sep 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169588