https://www.taxtmi.com/caselaws?id=37078 Commission paid under an agreement was held not deductible because it was not shown to have been laid out wholly and exclusively for the business. The court emphasised that actual execution of the agreement, payment of commission, and use of borrowed funds in the business do not end the inquiry; the taxing authority may examine motive, object, commercial expediency, and whether the arrangement is a device to divert profits or confer undue benefit. On the concurrent findings that the payment was excessive, collusive, and unsupported by legitimate business need, the deduction failed and the reference was answered against the assessee. en-us Thu, 02 Aug 1979 00:00:00 +0530 Fri, 26 Mar 2010 12:28:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37078 Commission paid under an agreement was held not deductible because it was not shown to have been laid out wholly and exclusively for the business. The court emphasised that actual execution of the agreement, payment of commission, and use of borrowed funds in the business do not end the inquiry; the taxing authority may examine motive, object, commercial expediency, and whether the arrangement is a device to divert profits or confer undue benefit. On the concurrent findings that the payment was excessive, collusive, and unsupported by legitimate business need, the deduction failed and the reference was answered against the assessee. Case-Laws Income Tax Thu, 02 Aug 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37078