https://www.taxtmi.com/caselaws?id=7714 A proportionate disallowance of managing agency commission was not justified where the remuneration was payable as a percentage of the company's net annual profits and related to the business as an integrated whole. The agricultural operations were treated as part of a composite commercial undertaking with the sugar business, so the expenditure was incurred for general management of the entire business rather than for a separable exempt activity. On that basis, business expenditure allowable under the taxing provision was not to be split merely because part of the profits arose from exempt agricultural income. The disallowance was therefore unsustainable and the issue was answered in favour of the assessee. en-us Fri, 27 Jun 1969 00:00:00 +0530 Tue, 17 Mar 2009 19:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7714 A proportionate disallowance of managing agency commission was not justified where the remuneration was payable as a percentage of the company's net annual profits and related to the business as an integrated whole. The agricultural operations were treated as part of a composite commercial undertaking with the sugar business, so the expenditure was incurred for general management of the entire business rather than for a separable exempt activity. On that basis, business expenditure allowable under the taxing provision was not to be split merely because part of the profits arose from exempt agricultural income. The disallowance was therefore unsustainable and the issue was answered in favour of the assessee. Case-Laws Income Tax Fri, 27 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7714