https://www.taxtmi.com/caselaws?id=180470 Commission paid to an employee was governed by the specific deduction rule for bonus or commission for services rendered, rather than the residuary expenditure clause, and its allowance depended on reasonableness judged by pay, service conditions, business profits and comparable commercial practice. For excess profits tax, the relevant test permitted only expenditure that was reasonable and necessary for the business, reflecting commercial expediency. In computing net profits for the commission, excess profits tax was not deductible first because it was a charge on profits, not an outgoing incurred to earn them. The commission was therefore allowable, and it had to be worked out on net profits without reducing those profits by excess profits tax. en-us Mon, 11 Jan 1954 00:00:00 +0530 Fri, 25 Mar 2016 16:29:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180470 Commission paid to an employee was governed by the specific deduction rule for bonus or commission for services rendered, rather than the residuary expenditure clause, and its allowance depended on reasonableness judged by pay, service conditions, business profits and comparable commercial practice. For excess profits tax, the relevant test permitted only expenditure that was reasonable and necessary for the business, reflecting commercial expediency. In computing net profits for the commission, excess profits tax was not deductible first because it was a charge on profits, not an outgoing incurred to earn them. The commission was therefore allowable, and it had to be worked out on net profits without reducing those profits by excess profits tax. Case-Laws Income Tax Mon, 11 Jan 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180470