https://www.taxtmi.com/caselaws?id=789262 Commission paid to a promoter full-time director was held not allowable as business expenditure because the assessee did not show any extraordinary effort beyond the director's normal duties. The payment was linked to turnover, but the director was already remunerated for the same functional role in marketing and business development, and no distinct service or independent business justification supported a separate commission. Board and shareholder approval did not cure the defect where the expenditure was found excessive and unsupported by a direct nexus to business necessity, so the disallowance was restored in favour of the Revenue. en-us Fri, 27 Feb 2026 00:00:00 +0530 Mon, 06 Apr 2026 08:51:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789262 Commission paid to a promoter full-time director was held not allowable as business expenditure because the assessee did not show any extraordinary effort beyond the director's normal duties. The payment was linked to turnover, but the director was already remunerated for the same functional role in marketing and business development, and no distinct service or independent business justification supported a separate commission. Board and shareholder approval did not cure the defect where the expenditure was found excessive and unsupported by a direct nexus to business necessity, so the disallowance was restored in favour of the Revenue. Case-Laws Income Tax Fri, 27 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789262