https://www.taxtmi.com/caselaws?id=7207 Remuneration paid to a managing partner for actual supervision of agricultural operations was treated as deductible expenditure under section 5(e) of the Madras Agricultural Income-tax Act, 1955. The court applied the principle that an allowance is permissible where the payment is made under a genuine and bona fide arrangement, is not excessive, and is laid out wholly and exclusively for the purpose of the land. Because the services were actually rendered and the firm would otherwise have had to engage another person on salary, the payment was held to satisfy the statutory test and was allowable as agricultural income-tax expenditure. en-us Thu, 27 Jul 1967 00:00:00 +0530 Thu, 12 Feb 2009 16:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7207 Remuneration paid to a managing partner for actual supervision of agricultural operations was treated as deductible expenditure under section 5(e) of the Madras Agricultural Income-tax Act, 1955. The court applied the principle that an allowance is permissible where the payment is made under a genuine and bona fide arrangement, is not excessive, and is laid out wholly and exclusively for the purpose of the land. Because the services were actually rendered and the firm would otherwise have had to engage another person on salary, the payment was held to satisfy the statutory test and was allowable as agricultural income-tax expenditure. Case-Laws Income Tax Thu, 27 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7207