https://www.taxtmi.com/caselaws?id=36635 For deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922, a business expenditure must be shown to be laid out wholly and exclusively for the purposes of the assessee's trade. The governing test is not whether the payment produced immediate profit, but whether it had a direct and intimate nexus with the business and was incurred as a trader's commercial expenditure. A general political donation, without a concrete business link or identifiable business advantage, is too remote to satisfy that requirement and is not deductible. The discussion also notes that earlier authority rejecting similar political contributions was followed. en-us Thu, 03 Apr 1980 00:00:00 +0530 Tue, 23 Mar 2010 15:46:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36635 For deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922, a business expenditure must be shown to be laid out wholly and exclusively for the purposes of the assessee's trade. The governing test is not whether the payment produced immediate profit, but whether it had a direct and intimate nexus with the business and was incurred as a trader's commercial expenditure. A general political donation, without a concrete business link or identifiable business advantage, is too remote to satisfy that requirement and is not deductible. The discussion also notes that earlier authority rejecting similar political contributions was followed. Case-Laws Income Tax Thu, 03 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36635