https://www.taxtmi.com/caselaws?id=7379 A payment to managing agents is deductible only if it is laid out wholly and exclusively for the purposes of business and is not capital or personal in nature. The governing test is commercial expediency, applied on the facts of each case. On the material considered, the payment was treated as a voluntary reward for past services and sacrifices, and the assessee did not show that it was made to secure future business benefit, facilitate operations, or discharge any legal liability. The amount was therefore not allowable as a deduction under section 10(2)(xv) or section 10(1) of the Indian Income-tax Act, 1922. en-us Mon, 29 Jul 1968 00:00:00 +0530 Thu, 19 Feb 2009 09:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7379 A payment to managing agents is deductible only if it is laid out wholly and exclusively for the purposes of business and is not capital or personal in nature. The governing test is commercial expediency, applied on the facts of each case. On the material considered, the payment was treated as a voluntary reward for past services and sacrifices, and the assessee did not show that it was made to secure future business benefit, facilitate operations, or discharge any legal liability. The amount was therefore not allowable as a deduction under section 10(2)(xv) or section 10(1) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Mon, 29 Jul 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7379