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1997 (4) TMI 8 - SC - Income Tax
Business of the assessee-company is the holding of investments & if with reference to the business of holding investments, any expenditure had been incurred that could have been allowed as deduction. The expenditure incurred in payment of managerial remuneration to the directors of the subsidiary companies cannot be said to be expenditure incurred in carrying on the business - Hence HC has rightly proceeded on the basis that there must be a nexus between expenditure and business of the assessee