https://www.taxtmi.com/caselaws?id=800663 Related-party commission payments may be disallowed as excessive or unreasonable only where the payment exceeds the fair market value of services, the legitimate needs of the business, or the benefit derived. A payment to a specified related person does not itself justify disallowance. Commission benchmarks must be based on genuinely comparable businesses; comparison with an unrelated business model cannot establish excessiveness. Verification should address the actual services rendered and their commercial justification. Where no comparable material demonstrates that commission paid to a spouse's proprietary concern was excessive or unreasonable, disallowance of the expenditure is unsustainable. en-us Thu, 01 Oct 2026 00:00:00 +0530 Fri, 09 Oct 2026 08:30:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=800663 Related-party commission payments may be disallowed as excessive or unreasonable only where the payment exceeds the fair market value of services, the legitimate needs of the business, or the benefit derived. A payment to a specified related person does not itself justify disallowance. Commission benchmarks must be based on genuinely comparable businesses; comparison with an unrelated business model cannot establish excessiveness. Verification should address the actual services rendered and their commercial justification. Where no comparable material demonstrates that commission paid to a spouse's proprietary concern was excessive or unreasonable, disallowance of the expenditure is unsustainable. Case-Laws Income Tax Thu, 01 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=800663