https://www.taxtmi.com/caselaws?id=7029 Remuneration paid to director-shareholders was held not deductible where they rendered no substantial service and the payment was not shown to be laid out wholly and exclusively for business. The court treated the arrangement as lacking genuine business consideration, since the directors lived away from the business, had no relevant business background, and did little beyond attending some meetings. A payment made as a return on investment or as a device to distribute expected profits is not business expenditure under section 10(2)(xv), and section 10(4A) did not save the claim. The expenditure was therefore disallowed. en-us Tue, 17 Jan 1967 00:00:00 +0530 Sun, 08 Feb 2009 09:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7029 Remuneration paid to director-shareholders was held not deductible where they rendered no substantial service and the payment was not shown to be laid out wholly and exclusively for business. The court treated the arrangement as lacking genuine business consideration, since the directors lived away from the business, had no relevant business background, and did little beyond attending some meetings. A payment made as a return on investment or as a device to distribute expected profits is not business expenditure under section 10(2)(xv), and section 10(4A) did not save the claim. The expenditure was therefore disallowed. Case-Laws Income Tax Tue, 17 Jan 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7029