https://www.taxtmi.com/caselaws?id=35782 Guarantee commission paid in connection with acquiring machinery and obtaining a stay of disputed sales tax is treated as deductible business expenditure under section 37 of the Income-tax Act. Commission relating to machinery acquisition was regarded as connected with business expenditure. Commission paid to furnish a guarantee for staying sales-tax collection pending appellate proceedings was considered even more clearly allowable because sales tax is a revenue liability and the payment secured compliance with the stay condition. The commission is therefore allowable as a deduction. en-us Tue, 29 Sep 1981 00:00:00 +0530 Tue, 16 Mar 2010 16:01:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35782 Guarantee commission paid in connection with acquiring machinery and obtaining a stay of disputed sales tax is treated as deductible business expenditure under section 37 of the Income-tax Act. Commission relating to machinery acquisition was regarded as connected with business expenditure. Commission paid to furnish a guarantee for staying sales-tax collection pending appellate proceedings was considered even more clearly allowable because sales tax is a revenue liability and the payment secured compliance with the stay condition. The commission is therefore allowable as a deduction. Case-Laws Income Tax Tue, 29 Sep 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35782