https://www.taxtmi.com/caselaws?id=7583 An expenditure or loss incurred by a managing agent in the ordinary course of business may be deductible even without a strict contractual obligation if it is commercially expedient, arises from the business, and is laid out wholly and exclusively for business purposes rather than as capital outlay. Advances made to a managed company to sustain production can qualify as business expenditure where commercial practice supports such financing. A settlement payment made towards employees' claims can also be deductible as business expenditure or trading loss when incurred in connection with the business and to avoid a larger loss. en-us Thu, 26 Jun 1969 00:00:00 +0530 Mon, 02 Mar 2009 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7583 An expenditure or loss incurred by a managing agent in the ordinary course of business may be deductible even without a strict contractual obligation if it is commercially expedient, arises from the business, and is laid out wholly and exclusively for business purposes rather than as capital outlay. Advances made to a managed company to sustain production can qualify as business expenditure where commercial practice supports such financing. A settlement payment made towards employees' claims can also be deductible as business expenditure or trading loss when incurred in connection with the business and to avoid a larger loss. Case-Laws Income Tax Thu, 26 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7583