https://www.taxtmi.com/caselaws?id=174361 A commission payment to a representative was deductible as business expenditure where it was made under a genuine arrangement for contingency expenses connected with canvassing business, even though there was no proof of actual disbursement to individual recipients. Deduction under section 10(2)(xv) of the Income-tax Act, 1922 depends on the expenditure being laid out wholly and exclusively for business purposes, not on the separate reasonableness test applicable to employee bonus or commission under section 10(2)(x). The tax department could require satisfaction as to business purpose and commercial necessity, but could not insist on proof of the representative's actual spending. The payment was therefore allowable as a deduction. en-us Fri, 11 Sep 1953 00:00:00 +0530 Wed, 07 Oct 2015 11:45:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174361 A commission payment to a representative was deductible as business expenditure where it was made under a genuine arrangement for contingency expenses connected with canvassing business, even though there was no proof of actual disbursement to individual recipients. Deduction under section 10(2)(xv) of the Income-tax Act, 1922 depends on the expenditure being laid out wholly and exclusively for business purposes, not on the separate reasonableness test applicable to employee bonus or commission under section 10(2)(x). The tax department could require satisfaction as to business purpose and commercial necessity, but could not insist on proof of the representative's actual spending. The payment was therefore allowable as a deduction. Case-Laws Income Tax Fri, 11 Sep 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174361