https://www.taxtmi.com/caselaws?id=28876 Payments made for non-import of allotted cotton quota were treated as deductible business expenditure because they arose from a commercial decision based on quality concerns, were directly connected with the business, and were not shown to result from any legal infraction. Payment to the Textile Commissioner under the cotton control order was also deductible under the business heads of the Income-tax Act. The remuneration and perquisite ceiling issue concerning managing directors was governed by the applicable limits on deductible employee remuneration, and the Revenue's proposed disallowance was not sustained. Commercially expedient, compensatory payments unconnected with unlawful conduct may therefore qualify as business deductions. en-us Mon, 16 Mar 1981 00:00:00 +0530 Mon, 08 Mar 2010 12:46:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28876 Payments made for non-import of allotted cotton quota were treated as deductible business expenditure because they arose from a commercial decision based on quality concerns, were directly connected with the business, and were not shown to result from any legal infraction. Payment to the Textile Commissioner under the cotton control order was also deductible under the business heads of the Income-tax Act. The remuneration and perquisite ceiling issue concerning managing directors was governed by the applicable limits on deductible employee remuneration, and the Revenue's proposed disallowance was not sustained. Commercially expedient, compensatory payments unconnected with unlawful conduct may therefore qualify as business deductions. Case-Laws Income Tax Mon, 16 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28876