https://www.taxtmi.com/caselaws?id=288809 Salary and bonus paid to an employee are deductible only if laid out wholly and exclusively for business purposes, and the tax authority may examine the nexus between the payment and that purpose. On the facts, the employee was the proprietor's son, young, working under the father's directions, and supported by experienced staff, so the claimed amount was found excessive and attributable to family feeling rather than business necessity. The full salary and bonus claim was therefore disallowed, while the bonus limited to the salary actually allowed was treated as reasonable. en-us Fri, 02 Feb 1962 00:00:00 +0530 Tue, 30 Jun 2020 16:27:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288809 Salary and bonus paid to an employee are deductible only if laid out wholly and exclusively for business purposes, and the tax authority may examine the nexus between the payment and that purpose. On the facts, the employee was the proprietor's son, young, working under the father's directions, and supported by experienced staff, so the claimed amount was found excessive and attributable to family feeling rather than business necessity. The full salary and bonus claim was therefore disallowed, while the bonus limited to the salary actually allowed was treated as reasonable. Case-Laws Income Tax Fri, 02 Feb 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288809