https://www.taxtmi.com/caselaws?id=15499 Expenditure paid in direct breach of the statutory ceiling on managing-agent remuneration under sections 348 and 349 of the Companies Act, 1956 was held not deductible under section 37 of the Income-tax Act, 1961, because illegality cannot be treated as allowable business outlay. The excess payment remained a prohibited expense even if actually disbursed and recorded in the books, so the deduction issue was decided for the Revenue. Rectification under section 154 was not available where disallowance of the amount was not a mistake apparent from the record on the then-existing law, so the rectification issue was decided for the assessee. en-us Mon, 17 Aug 1998 00:00:00 +0530 Tue, 25 Aug 2009 15:40:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15499 Expenditure paid in direct breach of the statutory ceiling on managing-agent remuneration under sections 348 and 349 of the Companies Act, 1956 was held not deductible under section 37 of the Income-tax Act, 1961, because illegality cannot be treated as allowable business outlay. The excess payment remained a prohibited expense even if actually disbursed and recorded in the books, so the deduction issue was decided for the Revenue. Rectification under section 154 was not available where disallowance of the amount was not a mistake apparent from the record on the then-existing law, so the rectification issue was decided for the assessee. Case-Laws Income Tax Mon, 17 Aug 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15499