https://www.taxtmi.com/caselaws?id=36765 Brokerage paid for arranging the issue and allotment of preference shares of a managed company was examined as a possible deduction under section 37(1). The expenditure was found not to satisfy the test of commercial expediency for the assessee's own business, because it related to raising capital for another entity rather than to a revenue activity of the assessee. It was also not available as a trading loss, since the assessee was not a dealer in shares. The payment was further inconsistent with the treatment that would have applied in the managed company's hands under the Companies Act rules on commission and discount on shares. en-us Wed, 20 Jun 1979 00:00:00 +0530 Wed, 24 Mar 2010 13:22:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36765 Brokerage paid for arranging the issue and allotment of preference shares of a managed company was examined as a possible deduction under section 37(1). The expenditure was found not to satisfy the test of commercial expediency for the assessee's own business, because it related to raising capital for another entity rather than to a revenue activity of the assessee. It was also not available as a trading loss, since the assessee was not a dealer in shares. The payment was further inconsistent with the treatment that would have applied in the managed company's hands under the Companies Act rules on commission and discount on shares. Case-Laws Income Tax Wed, 20 Jun 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36765