Forgot password
New User/ Regiser
⇒ Register to get Live Demo
1966 (9) TMI 30 - SC - Income Tax
Whether the sum of ₹ 1,11,090 paid as remuneration to the five directors of the assessee-company during the relevant previous year was an expenditure incurred wholly and exclusively for the purpose of the business under section 10(2)(xv) of the Income-tax Act ?
Held that:- The payment of the commission was made to the directors for extra-commercial reasons and was not wholly and exclusively made for the purpose of the business. the expenditure was not incurred wholly and exclusively for the purposes of the business of the appellant-company thus the appellant was not entitled to claim deduction of this expenditure under section 10(2)(xv) of the Income-tax Act. Appeal dismissed.