https://www.taxtmi.com/caselaws?id=49545 Contractual commission on an employee's net profits is governed by the agreement's own computation formula; where the clause does not exclude excess profits tax, that tax is deductible before calculating the commission. By contrast, additional commission paid to branch managers and other employees under the excess profits tax regime is deductible only if it is objectively reasonable and necessary for the business, having regard to the services rendered. That assessment is primarily for the taxing authorities, and their factual finding of excessiveness cannot be displaced by reappreciation of evidence in advisory jurisdiction. The article distinguishes contractual construction from statutory deductibility. en-us Thu, 08 Dec 1960 00:00:00 +0530 Sun, 31 Aug 2014 19:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49545 Contractual commission on an employee's net profits is governed by the agreement's own computation formula; where the clause does not exclude excess profits tax, that tax is deductible before calculating the commission. By contrast, additional commission paid to branch managers and other employees under the excess profits tax regime is deductible only if it is objectively reasonable and necessary for the business, having regard to the services rendered. That assessment is primarily for the taxing authorities, and their factual finding of excessiveness cannot be displaced by reappreciation of evidence in advisory jurisdiction. The article distinguishes contractual construction from statutory deductibility. Case-Laws Income Tax Thu, 08 Dec 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49545