https://www.taxtmi.com/caselaws?id=189808 Business expenditure is deductible where the payment reflects its real commercial character and is made under the terms of employment for services actually rendered. A tax authority cannot substitute its own view of a "reasonable" salary and disallow part of a fixed remuneration merely because a different remuneration basis was used in earlier years. An employee's alternative right to a share of profits does not control the deduction once the employee validly elects to take fixed salary. On those principles, the entire salary paid to the general manager was allowable as expenditure laid out wholly and exclusively for the purposes of business. en-us Wed, 05 Apr 1961 00:00:00 +0530 Sat, 21 Jan 2017 15:27:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189808 Business expenditure is deductible where the payment reflects its real commercial character and is made under the terms of employment for services actually rendered. A tax authority cannot substitute its own view of a "reasonable" salary and disallow part of a fixed remuneration merely because a different remuneration basis was used in earlier years. An employee's alternative right to a share of profits does not control the deduction once the employee validly elects to take fixed salary. On those principles, the entire salary paid to the general manager was allowable as expenditure laid out wholly and exclusively for the purposes of business. Case-Laws Income Tax Wed, 05 Apr 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189808