https://www.taxtmi.com/caselaws?id=801149 Foreign-exchange rebate paid to export buyers under a pre-existing agreement to share gains above an agreed threshold is treated as a genuine business payment where its contractual basis, accounting and genuineness are undisputed. A gain-sharing arrangement need not also allocate losses absent a statutory prohibition, and labels such as rebate or discount do not alter its character. The matching principle is satisfied where the payment and export revenue arise in the same accounting year. Excessive ad hoc disallowances of business expenses may warrant moderation on the facts. en-us Wed, 15 Jul 2026 00:00:00 +0530 Fri, 16 Oct 2026 05:20:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801149 Foreign-exchange rebate paid to export buyers under a pre-existing agreement to share gains above an agreed threshold is treated as a genuine business payment where its contractual basis, accounting and genuineness are undisputed. A gain-sharing arrangement need not also allocate losses absent a statutory prohibition, and labels such as rebate or discount do not alter its character. The matching principle is satisfied where the payment and export revenue arise in the same accounting year. Excessive ad hoc disallowances of business expenses may warrant moderation on the facts. Case-Laws Income Tax Wed, 15 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801149