https://www.taxtmi.com/caselaws?id=367213 A payment described as leadership fees by an association of persons to one member was treated as a non-deductible appropriation of profits rather than business expenditure. The absence of evidence that the member rendered real services, the predetermined receipt-sharing arrangement, and the fact that one constituent merely secured the contract while execution rested with another showed that the amount was in substance profit sharing. The statutory bar on such payments to a member of an association of persons therefore applied, and commercial expediency could not override it. Earlier years' treatment did not assist because each assessment year is separate and res judicata does not apply in income-tax proceedings. en-us Fri, 10 Aug 2018 00:00:00 +0530 Fri, 14 Sep 2018 14:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=367213 A payment described as leadership fees by an association of persons to one member was treated as a non-deductible appropriation of profits rather than business expenditure. The absence of evidence that the member rendered real services, the predetermined receipt-sharing arrangement, and the fact that one constituent merely secured the contract while execution rested with another showed that the amount was in substance profit sharing. The statutory bar on such payments to a member of an association of persons therefore applied, and commercial expediency could not override it. Earlier years' treatment did not assist because each assessment year is separate and res judicata does not apply in income-tax proceedings. Case-Laws Income Tax Fri, 10 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=367213