https://www.taxtmi.com/caselaws?id=38085 An expenditure paid to a terminated agent was held deductible as business expenditure where it was incurred on grounds of commercial expediency and bore a real nexus with the smooth conduct of business. The payment followed termination of the agency, aligned with an earlier practice of similar termination payments, and facilitated the transition from agency distribution to direct distribution. The court treated it as reasonable business outlay made to ensure continuity and convenience in operations, not as a bounty or extraneous payment. The deduction was therefore allowed under the business expenditure provision. en-us Wed, 02 Nov 1977 00:00:00 +0530 Sat, 03 Apr 2010 11:05:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38085 An expenditure paid to a terminated agent was held deductible as business expenditure where it was incurred on grounds of commercial expediency and bore a real nexus with the smooth conduct of business. The payment followed termination of the agency, aligned with an earlier practice of similar termination payments, and facilitated the transition from agency distribution to direct distribution. The court treated it as reasonable business outlay made to ensure continuity and convenience in operations, not as a bounty or extraneous payment. The deduction was therefore allowed under the business expenditure provision. Case-Laws Income Tax Wed, 02 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38085