https://www.taxtmi.com/caselaws?id=187355 Commission payable to employees at a fixed percentage of profits could not be reduced by a rigid requirement that excess profits tax be deducted first. The taxing authority had to apply the statutory test of commercial reasonableness and business necessity, considering the contract, services rendered, past practice, and surrounding business conditions. A payment was not to be treated as unreasonable or unnecessary merely because it was calculated without first deducting excess profits tax. On that basis, the assessee's commission claim was preserved and the disallowance based solely on the deduction-first approach was rejected. en-us Wed, 05 Jan 1955 00:00:00 +0530 Wed, 19 Oct 2016 12:43:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187355 Commission payable to employees at a fixed percentage of profits could not be reduced by a rigid requirement that excess profits tax be deducted first. The taxing authority had to apply the statutory test of commercial reasonableness and business necessity, considering the contract, services rendered, past practice, and surrounding business conditions. A payment was not to be treated as unreasonable or unnecessary merely because it was calculated without first deducting excess profits tax. On that basis, the assessee's commission claim was preserved and the disallowance based solely on the deduction-first approach was rejected. Case-Laws Income Tax Wed, 05 Jan 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187355