https://www.taxtmi.com/caselaws?id=6984 Remuneration paid to directors for the period before a company's incorporation was not deductible as business expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. The business during that period was still carried on by the Hindu undivided family, so payments made in respect of that earlier period could not be treated as expenditure laid out wholly and exclusively for the company's business. The assessee's unilateral description of the pre-incorporation business as the company's business did not bind the tax authorities. The deduction claim was therefore rejected and the issue was answered against the assessee. en-us Thu, 19 Jan 1967 00:00:00 +0530 Sat, 07 Feb 2009 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6984 Remuneration paid to directors for the period before a company's incorporation was not deductible as business expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. The business during that period was still carried on by the Hindu undivided family, so payments made in respect of that earlier period could not be treated as expenditure laid out wholly and exclusively for the company's business. The assessee's unilateral description of the pre-incorporation business as the company's business did not bind the tax authorities. The deduction claim was therefore rejected and the issue was answered against the assessee. Case-Laws Income Tax Thu, 19 Jan 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6984