https://www.taxtmi.com/caselaws?id=37003 A payment to the widow of a founder director was held not to qualify as a business deduction because it was not incurred wholly and exclusively for business purposes. The company had no contractual obligation to the widow, the payment was not made on ordinary service terms, and she rendered no service to the company. It was also not treated as contractual liability, deferred remuneration, or a pension supported by commercial expediency. The outgoing was therefore regarded as influenced by extraneous considerations and disallowed as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Wed, 12 Jul 1978 00:00:00 +0530 Thu, 25 Mar 2010 18:22:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37003 A payment to the widow of a founder director was held not to qualify as a business deduction because it was not incurred wholly and exclusively for business purposes. The company had no contractual obligation to the widow, the payment was not made on ordinary service terms, and she rendered no service to the company. It was also not treated as contractual liability, deferred remuneration, or a pension supported by commercial expediency. The outgoing was therefore regarded as influenced by extraneous considerations and disallowed as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Wed, 12 Jul 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37003