https://www.taxtmi.com/caselaws?id=277219 Prosecution expenses of Rs. 8,150 incurred in pursuing a repudiator of a proposed jeep sale were held non-deductible because they related to an uncommenced enterprise and therefore constituted preliminary/start-up expenditure rather than expenditure in carrying on the assessee's existing cotton business. By contrast, a managing agency commission contractually fixed as 20% of net annual profits was held to accrue and be earned where the managing agents carry on business and, as remuneration of management for an integrated enterprise, is not apportionable between Karachi and Bombay for purposes of bilateral relief; it may be deducted against Pakistan profits under the Indo Pakistan relief framework. en-us Wed, 04 Mar 1953 00:00:00 +0530 Thu, 29 Nov 2018 12:44:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277219 Prosecution expenses of Rs. 8,150 incurred in pursuing a repudiator of a proposed jeep sale were held non-deductible because they related to an uncommenced enterprise and therefore constituted preliminary/start-up expenditure rather than expenditure in carrying on the assessee's existing cotton business. By contrast, a managing agency commission contractually fixed as 20% of net annual profits was held to accrue and be earned where the managing agents carry on business and, as remuneration of management for an integrated enterprise, is not apportionable between Karachi and Bombay for purposes of bilateral relief; it may be deducted against Pakistan profits under the Indo Pakistan relief framework. Case-Laws Income Tax Wed, 04 Mar 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277219