https://www.taxtmi.com/caselaws?id=277021 Commission paid to branch managers and assistant managers was treated as allowable business expenditure because it was actually paid, commercially connected with abnormal trading conditions, and not shown to be motivated by non-business considerations. The excess over the minimum suggested by the supplier did not by itself make the payment unreasonable; the test was whether a prudent businessman would regard the outlay as justified by business needs. On those facts, the payments were not disallowed as excessive and satisfied the requirement of expenditure laid out wholly and exclusively for business purposes. en-us Mon, 18 Apr 1955 00:00:00 +0530 Thu, 22 Nov 2018 12:13:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277021 Commission paid to branch managers and assistant managers was treated as allowable business expenditure because it was actually paid, commercially connected with abnormal trading conditions, and not shown to be motivated by non-business considerations. The excess over the minimum suggested by the supplier did not by itself make the payment unreasonable; the test was whether a prudent businessman would regard the outlay as justified by business needs. On those facts, the payments were not disallowed as excessive and satisfied the requirement of expenditure laid out wholly and exclusively for business purposes. Case-Laws Income Tax Mon, 18 Apr 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277021