https://www.taxtmi.com/caselaws?id=23674 The court ruled in favor of the assessee, determining that the payment made by the company to its holding company for the services of the managing director and officers was allowable as a deduction under the Income-tax Act. The court found that the payment was contractual, made for business expediency, and not suspect, therefore not falling under the provisions of section 40(c) of the Act. The court emphasized the bona fide nature of the payment and the absence of any suspicion of tax evasion, ultimately deciding that section 40(c) was not applicable in this case. en-us Mon, 21 Aug 1989 00:00:00 +0530 Wed, 23 Dec 2009 11:40:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23674 The court ruled in favor of the assessee, determining that the payment made by the company to its holding company for the services of the managing director and officers was allowable as a deduction under the Income-tax Act. The court found that the payment was contractual, made for business expediency, and not suspect, therefore not falling under the provisions of section 40(c) of the Act. The court emphasized the bona fide nature of the payment and the absence of any suspicion of tax evasion, ultimately deciding that section 40(c) was not applicable in this case. Case-Laws Income Tax Mon, 21 Aug 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23674