https://www.taxtmi.com/caselaws?id=276870 For section 23A, commercial profits must be assessed on a business basis, not merely by reference to assessable income. A genuine payment actually made out of company funds may be deducted if it has a business connection, even if it is not allowable in income-tax computation. Here, a sum paid under a bona fide compromise of protracted litigation was treated as an actual and genuine outgoing made to remove a disturbing business element, so it reduced the profits available for distribution and was deductible for section 23A purposes. en-us Mon, 20 Aug 1962 00:00:00 +0530 Mon, 19 Nov 2018 17:44:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276870 For section 23A, commercial profits must be assessed on a business basis, not merely by reference to assessable income. A genuine payment actually made out of company funds may be deducted if it has a business connection, even if it is not allowable in income-tax computation. Here, a sum paid under a bona fide compromise of protracted litigation was treated as an actual and genuine outgoing made to remove a disturbing business element, so it reduced the profits available for distribution and was deductible for section 23A purposes. Case-Laws Income Tax Mon, 20 Aug 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276870