https://www.taxtmi.com/caselaws?id=285622 Expenditure incurred bona fide on grounds of commercial expediency to end a managing agency arrangement that threatened the future conduct of the business was treated as laid out wholly and exclusively for business purposes. The court applied the test under section 10(2)(xv) of the Indian Income-tax Act, 1922, and held that a direct or immediate benefit was not necessary where the payment was made voluntarily to facilitate business operations or prevent future commercial loss or inconvenience. On the facts, the settlement payment and connected legal, travelling and incidental costs were deductible, and the reference was answered in favour of the assessee. en-us Tue, 23 Aug 1960 00:00:00 +0530 Mon, 20 Jan 2020 11:14:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285622 Expenditure incurred bona fide on grounds of commercial expediency to end a managing agency arrangement that threatened the future conduct of the business was treated as laid out wholly and exclusively for business purposes. The court applied the test under section 10(2)(xv) of the Indian Income-tax Act, 1922, and held that a direct or immediate benefit was not necessary where the payment was made voluntarily to facilitate business operations or prevent future commercial loss or inconvenience. On the facts, the settlement payment and connected legal, travelling and incidental costs were deductible, and the reference was answered in favour of the assessee. Case-Laws Income Tax Tue, 23 Aug 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285622