https://www.taxtmi.com/caselaws?id=39528 Expenditure is deductible under section 10(2)(xv) when it is laid out wholly and exclusively for the business, assessed from the standpoint of a prudent businessman, not by the revenue's own view of reasonableness. A tax authority may refuse deduction only where the payment is unreal, extraneous, extra-commercial, or wholly disproportionate to the business or comparable payments; it cannot merely reduce remuneration because an outsider might have worked for less. On the facts discussed, there was no evidence of lack of business purpose, so the disallowance of the managing director's remuneration was unjustified. en-us Mon, 12 Aug 1974 00:00:00 +0530 Sat, 17 Apr 2010 11:14:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39528 Expenditure is deductible under section 10(2)(xv) when it is laid out wholly and exclusively for the business, assessed from the standpoint of a prudent businessman, not by the revenue's own view of reasonableness. A tax authority may refuse deduction only where the payment is unreal, extraneous, extra-commercial, or wholly disproportionate to the business or comparable payments; it cannot merely reduce remuneration because an outsider might have worked for less. On the facts discussed, there was no evidence of lack of business purpose, so the disallowance of the managing director's remuneration was unjustified. Case-Laws Income Tax Mon, 12 Aug 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39528