Is the concept of ‘Commercial Expediency” too broadly stated by the Madras High Court?

The Supreme Court in the case of CIT vs. Chandulal Keshavlal amp; Co. [1960] 38 ITR 601 (SC) explained succinctly the concept of claiming the amount paid as business expenditure under section 10(2)(xv) of the Indian Income-tax Act 1922 (the 1922 Act) [corresponding to 37(1) of the Income-tax Act 1961 (the Act)] in the following words- “Another fact that emerges from these cases is that if the expense is incurred for fostering the business of another only or was made by way of distribution of profitThe Supreme Court in the case of CIT vs. Chandulal Keshavlal amp; Co. [1960] 38 ITR 601 (SC) explained succinctly the concept of claiming the amount paid as business expenditure under section 10(2)(xv) of the Indian Income-tax Act 1922 (the 1922 Act) [corresponding to 37(1) of the Income-tax Act 1961 (the Act)] in the following words- “Another fact that emerges from these cases is that if the expense is incurred for fostering the business of another only or was made by way of distribution of profittaxmann.com Latest ArticlesRead More

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