https://www.taxtmi.com/caselaws?id=282584 Taxing authorities may examine the true character of remuneration paid to shareholder-directors and are not bound by its formal treatment in the accounts; if the payment is found to be a device to divert profits rather than bona fide commercial expenditure, it is not deductible. Deductions in computing business profits are confined to expenditure expressly permitted by the statutory allowance provision, and an item outside those clauses cannot be allowed merely because it was authorised in company documents or accepted by auditors. The assessee's claim failed on both points, and the payments were held not to qualify as deductible business expenditure. en-us Sun, 10 Mar 1996 00:00:00 +0530 Tue, 13 Aug 2019 17:17:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282584 Taxing authorities may examine the true character of remuneration paid to shareholder-directors and are not bound by its formal treatment in the accounts; if the payment is found to be a device to divert profits rather than bona fide commercial expenditure, it is not deductible. Deductions in computing business profits are confined to expenditure expressly permitted by the statutory allowance provision, and an item outside those clauses cannot be allowed merely because it was authorised in company documents or accepted by auditors. The assessee's claim failed on both points, and the payments were held not to qualify as deductible business expenditure. Case-Laws Income Tax Sun, 10 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282584