https://www.taxtmi.com/caselaws?id=183357 Disallowance of part of the remuneration paid to a managing director and a technically qualified director turned on whether the expenditure was wholly and exclusively for business under section 10(2)(xv) of the Income-tax Act, 1922. The court applied the commercial expediency test from the standpoint of a prudent businessman, noting the assessee's business expansion, increased responsibilities, and the need for higher remuneration. It found the disallowance arbitrary because the services rendered were not properly correlated with the amounts paid and the Tribunal had not independently evaluated the relevant facts. The questions referred were answered against the assessee and in favour of the Revenue. en-us Mon, 17 Jul 1961 00:00:00 +0530 Mon, 06 Jun 2016 18:22:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183357 Disallowance of part of the remuneration paid to a managing director and a technically qualified director turned on whether the expenditure was wholly and exclusively for business under section 10(2)(xv) of the Income-tax Act, 1922. The court applied the commercial expediency test from the standpoint of a prudent businessman, noting the assessee's business expansion, increased responsibilities, and the need for higher remuneration. It found the disallowance arbitrary because the services rendered were not properly correlated with the amounts paid and the Tribunal had not independently evaluated the relevant facts. The questions referred were answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Mon, 17 Jul 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183357