https://www.taxtmi.com/caselaws?id=396157 Business deductions must be supported by reliable evidence showing a clear nexus with the business activity. Direct expenses on material purchases were accepted because bills and supporting records showed they related to land development, and disallowance based on suspicion and untested material was rejected. Contract charges for land development were also allowed where agreements, TDS compliance, site photographs and confirmations evidenced actual work. By contrast, compensation paid to retired partners was treated as an appropriation of profit rather than a business expense, and salary and wages were disallowed for want of commercial justification after the business activity had ceased. Partial relief was therefore granted only for the first two claims. en-us Fri, 12 Jun 2020 00:00:00 +0530 Tue, 23 Jun 2020 10:48:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396157 Business deductions must be supported by reliable evidence showing a clear nexus with the business activity. Direct expenses on material purchases were accepted because bills and supporting records showed they related to land development, and disallowance based on suspicion and untested material was rejected. Contract charges for land development were also allowed where agreements, TDS compliance, site photographs and confirmations evidenced actual work. By contrast, compensation paid to retired partners was treated as an appropriation of profit rather than a business expense, and salary and wages were disallowed for want of commercial justification after the business activity had ceased. Partial relief was therefore granted only for the first two claims. Case-Laws Income Tax Fri, 12 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396157