https://www.taxtmi.com/caselaws?id=7222 Expenditure incurred by directors in issuing circulars to shareholders was allowable as a deduction because it was incurred on commercial expediency and bore a sufficient, at least indirect, nexus with earning directors' fees. By contrast, expenditure on collecting proxies from shareholders was too remote from the income-producing function, fell outside the legitimate role of a director, and lacked the necessary connection with earning the fees, so it was not deductible under either provision. The deduction was therefore allowed only in respect of the circulars and disallowed for proxy collection. en-us Mon, 26 Jun 1967 00:00:00 +0530 Mon, 16 Feb 2009 08:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7222 Expenditure incurred by directors in issuing circulars to shareholders was allowable as a deduction because it was incurred on commercial expediency and bore a sufficient, at least indirect, nexus with earning directors' fees. By contrast, expenditure on collecting proxies from shareholders was too remote from the income-producing function, fell outside the legitimate role of a director, and lacked the necessary connection with earning the fees, so it was not deductible under either provision. The deduction was therefore allowed only in respect of the circulars and disallowed for proxy collection. Case-Laws Income Tax Mon, 26 Jun 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7222