https://www.taxtmi.com/caselaws?id=38923 Deductibility of payments to directors, salesmen and employees depended on strict proof that the expenditure was laid out wholly and exclusively for business purposes and was commercially necessary; bare resolutions or unsupported assertions were insufficient where the underlying purpose and actual spending were not established. Commission to employees was deductible only if paid for services rendered and shown to be reasonable having regard to pay, service conditions, business profits and established trade practice. Excessive commission, absence of prior contractual entitlement, late-year payment and lack of supporting industry practice weighed against deduction. The claimed deductions were therefore disallowed on the stated statutory tests. en-us Wed, 30 Jul 1975 00:00:00 +0530 Sat, 10 Apr 2010 13:33:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38923 Deductibility of payments to directors, salesmen and employees depended on strict proof that the expenditure was laid out wholly and exclusively for business purposes and was commercially necessary; bare resolutions or unsupported assertions were insufficient where the underlying purpose and actual spending were not established. Commission to employees was deductible only if paid for services rendered and shown to be reasonable having regard to pay, service conditions, business profits and established trade practice. Excessive commission, absence of prior contractual entitlement, late-year payment and lack of supporting industry practice weighed against deduction. The claimed deductions were therefore disallowed on the stated statutory tests. Case-Laws Income Tax Wed, 30 Jul 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38923