https://www.taxtmi.com/caselaws?id=38782 Payments made to a managing director's widow under a service agreement were held not deductible as business expenditure because the assessee failed to show commercial expediency or that the sums were incurred wholly and exclusively for business purposes. The agreement itself was insufficient; the widow had rendered no services, the managing director had no comparable post-term benefit, and there was no material showing that the business would have suffered if the payments were not made. The amounts were therefore not allowable deductions under section 10(2)(xv) of the Indian Income-tax Act, 1922, or section 37 of the Income-tax Act, 1961. en-us Fri, 09 Jul 1976 00:00:00 +0530 Fri, 09 Apr 2010 10:37:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38782 Payments made to a managing director's widow under a service agreement were held not deductible as business expenditure because the assessee failed to show commercial expediency or that the sums were incurred wholly and exclusively for business purposes. The agreement itself was insufficient; the widow had rendered no services, the managing director had no comparable post-term benefit, and there was no material showing that the business would have suffered if the payments were not made. The amounts were therefore not allowable deductions under section 10(2)(xv) of the Indian Income-tax Act, 1922, or section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Fri, 09 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38782