https://www.taxtmi.com/caselaws?id=5864 SC held the payment deductible under s.37, rejecting revenue's contention and upholding the HC. The court found the expenditure was incurred wholly and exclusively for business purposes to protect reputation, preserve a profit-earning managing agency and prevent termination, thus meeting commercial expediency principles. Whether paid directly by the taxpayer or routed through the firm did not bar the deduction, since the firm did not claim it and the payment effectively benefitted the taxpayer's business interest. No statutory bar existed to deny the deduction in the case's peculiar circumstances. en-us Tue, 12 Jan 1982 00:00:00 +0530 Fri, 31 Oct 2025 16:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5864 SC held the payment deductible under s.37, rejecting revenue's contention and upholding the HC. The court found the expenditure was incurred wholly and exclusively for business purposes to protect reputation, preserve a profit-earning managing agency and prevent termination, thus meeting commercial expediency principles. Whether paid directly by the taxpayer or routed through the firm did not bar the deduction, since the firm did not claim it and the payment effectively benefitted the taxpayer's business interest. No statutory bar existed to deny the deduction in the case's peculiar circumstances. Case-Laws Income Tax Tue, 12 Jan 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5864