https://www.taxtmi.com/caselaws?id=28747 Business expenditure is allowable where it is incurred on grounds of commercial expediency and in accordance with ordinary commercial practice, even if it also benefits another person. On that test, the Rs. 4,800 item was disallowed because no nexus with the assessee's business was shown during the relevant year. The brokerage of Rs. 12,785 and travelling allowance of Rs. 1,500 were treated as allowable, because they were connected with the managed company's expansion and procurement activities, and the assessee's remuneration depended on the managed company's profits. The fact that those expenses might have been capital in the managed company's hands did not make them capital expenditure for the assessee. en-us Thu, 02 Dec 1982 00:00:00 +0530 Thu, 25 Feb 2010 14:43:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28747 Business expenditure is allowable where it is incurred on grounds of commercial expediency and in accordance with ordinary commercial practice, even if it also benefits another person. On that test, the Rs. 4,800 item was disallowed because no nexus with the assessee's business was shown during the relevant year. The brokerage of Rs. 12,785 and travelling allowance of Rs. 1,500 were treated as allowable, because they were connected with the managed company's expansion and procurement activities, and the assessee's remuneration depended on the managed company's profits. The fact that those expenses might have been capital in the managed company's hands did not make them capital expenditure for the assessee. Case-Laws Income Tax Thu, 02 Dec 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28747