https://www.taxtmi.com/caselaws?id=9018 Where cotton purchase expenditure is actually incurred, paid at the full ceiling price, and directly connected with business, the revenue cannot disallow part of the payment merely by questioning commercial reasonableness or by attributing a notional third-party benefit. The deduction inquiry is confined to whether the expenditure was in fact incurred and whether it was laid out wholly and exclusively for business purposes. On those facts, the assessee was held entitled to deduct the full purchase price, and the partial disallowance was not justified. en-us Tue, 21 Aug 1973 00:00:00 +0530 Thu, 18 Jun 2009 17:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9018 Where cotton purchase expenditure is actually incurred, paid at the full ceiling price, and directly connected with business, the revenue cannot disallow part of the payment merely by questioning commercial reasonableness or by attributing a notional third-party benefit. The deduction inquiry is confined to whether the expenditure was in fact incurred and whether it was laid out wholly and exclusively for business purposes. On those facts, the assessee was held entitled to deduct the full purchase price, and the partial disallowance was not justified. Case-Laws Income Tax Tue, 21 Aug 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9018