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2010 (2) TMI 792 - ITAT, BANGALORECommission payment by the assessee to the Directors of other company for procurement of orders. - Held that:- Payment of this nature even if it is disclosed in their accounts, cannot be allowed. The payer induces the other party to deceive its shareholders. - The other party is a public limited company. Even if this is treated not as an 'offence' as such, within the meaning of the section, it clearly falls within the meaning of expenditure incurred, which is prohibited by law. The directors of the company are holding the post in trust. - By making the payment, the payer induces the directors its shareholders. This amounts to an abetment of not only an unethical business practice but also amounts to abetting to commit a breach of trust by the directors of the recipient company, which is clearly an offence - prohibited by law. - decided against Assessee.
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