https://www.taxtmi.com/caselaws?id=23525 The High Court upheld the Tribunal's decision that guarantee commission payments to directors were legitimate business expenses, justifiable by commercial expediency and business needs. Despite the circular from the Reserve Bank of India discouraging personal guarantees, banks continued to require them, impacting the assessee's ability to secure loans. The Court found the payments reasonable and necessary, dismissing the Commissioner's challenge as no question of law arose from the Tribunal's decision. The applications were rejected, affirming the deductibility of guarantee commission payments in computing the assessee's profits from business. en-us Fri, 13 Jan 1989 00:00:00 +0530 Mon, 21 Dec 2009 15:37:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23525 The High Court upheld the Tribunal's decision that guarantee commission payments to directors were legitimate business expenses, justifiable by commercial expediency and business needs. Despite the circular from the Reserve Bank of India discouraging personal guarantees, banks continued to require them, impacting the assessee's ability to secure loans. The Court found the payments reasonable and necessary, dismissing the Commissioner's challenge as no question of law arose from the Tribunal's decision. The applications were rejected, affirming the deductibility of guarantee commission payments in computing the assessee's profits from business. Case-Laws Income Tax Fri, 13 Jan 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23525