https://www.taxtmi.com/caselaws?id=284012 Commission paid to managers under an agreement was to be tested for deductibility by statutory reasonableness and commercial expediency, viewed from the standpoint of a prudent businessman, not by a purely subjective revenue assessment. The relevant factors were the employees' remuneration, conditions of service, business profits, and prevailing practice in similar businesses; linking managerial pay to net profits could be a proper incentive and was not unreasonable merely because duties remained managerial or the amount was computed by reference to profits. Applying that standard, the commission was held to be a reasonable business expenditure and allowable as a deduction, and the reference was answered in favour of the assessee. en-us Mon, 27 Aug 1956 00:00:00 +0530 Wed, 23 Oct 2019 15:43:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=284012 Commission paid to managers under an agreement was to be tested for deductibility by statutory reasonableness and commercial expediency, viewed from the standpoint of a prudent businessman, not by a purely subjective revenue assessment. The relevant factors were the employees' remuneration, conditions of service, business profits, and prevailing practice in similar businesses; linking managerial pay to net profits could be a proper incentive and was not unreasonable merely because duties remained managerial or the amount was computed by reference to profits. Applying that standard, the commission was held to be a reasonable business expenditure and allowable as a deduction, and the reference was answered in favour of the assessee. Case-Laws Income Tax Mon, 27 Aug 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=284012