https://www.taxtmi.com/caselaws?id=6375 Under rule 12(1) of Schedule I to the Excess Profits Tax Act, expenditure may be disallowed where it is unreasonable or unnecessary having regard to the needs of the business and the actual services rendered. The Court accepted that commercial principles are relevant, but held that commission linked to wartime excess profits, so far as it did not reflect corresponding managerial contribution, could properly be treated as excessive. The disallowance was upheld, and the referred question was answered against the assessee. en-us Tue, 03 Oct 1972 00:00:00 +0530 Thu, 04 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6375 Under rule 12(1) of Schedule I to the Excess Profits Tax Act, expenditure may be disallowed where it is unreasonable or unnecessary having regard to the needs of the business and the actual services rendered. The Court accepted that commercial principles are relevant, but held that commission linked to wartime excess profits, so far as it did not reflect corresponding managerial contribution, could properly be treated as excessive. The disallowance was upheld, and the referred question was answered against the assessee. Case-Laws Income Tax Tue, 03 Oct 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6375