https://www.taxtmi.com/caselaws?id=36113 Actual expenditure incurred by an agency on behalf of an assessee was treated as deductible business expenditure where the assessee remained legally bound to reimburse the amount. The commission claim itself had been disallowed, but the liability to repay the agency for business-related outgoings was held to be an allowable deduction under section 37(1) of the Income-tax Act, 1961. The legal effect was that expenditure incurred under a business liability, even if routed through an agent, qualifies as an admissible deduction when it is incurred wholly for business purposes. en-us Mon, 23 Feb 1981 00:00:00 +0530 Fri, 19 Mar 2010 13:33:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36113 Actual expenditure incurred by an agency on behalf of an assessee was treated as deductible business expenditure where the assessee remained legally bound to reimburse the amount. The commission claim itself had been disallowed, but the liability to repay the agency for business-related outgoings was held to be an allowable deduction under section 37(1) of the Income-tax Act, 1961. The legal effect was that expenditure incurred under a business liability, even if routed through an agent, qualifies as an admissible deduction when it is incurred wholly for business purposes. Case-Laws Income Tax Mon, 23 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36113