| Case ID |
e0016014-dea9-486d-b5dd-479a325ab677 |
| Body |
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| Case Number |
IT REFERRED CASE No. 10 OF 1967 |
| Decision Date |
Sep 23, 1967 |
| Hearing Date |
|
| Decision |
The court ruled that the disallowance of the sum claimed by the assessee was justified. It was found that the remuneration paid to 'M' was not made exclusively for business purposes. The court emphasized that to qualify for a deduction under section 10(2)(xv) of the Income-tax Act, it must be shown that the payment was made wholly and exclusively for the purpose of the business. In this case, the payment was deemed motivated by non-commercial considerations. The conclusion reached by the authorities was supported by evidence and was not unreasonable or perverse. |
| Summary |
In the case of Haji K. Assainar v. Commissioner of INCOME TAX, the Kerala High Court addressed the issue of whether certain payments made to an individual, 'M', could be classified as business expenditure under section 10(2)(xv) of the Income-tax Act, 1961. The court examined the qualifications and roles of 'M', who was found to lack the necessary experience and training to justify the high remuneration he received. The court concluded that the payments were not made for business purposes, thus disallowing the claim. This case highlights the importance of establishing that payments are made wholly and exclusively for business purposes to qualify for tax deductions. Keywords: Income-tax Act, business expenditure, tax deductions, remuneration, Kerala High Court. |
| Court |
Kerala High Court
|
| Entities Involved |
Not available
|
| Judges |
M.S. Menon, C.J.,
V. Balakrishna Eradi, J
|
| Lawyers |
V.A. Syed Mohammed,
C. George,
C.T. Peter
|
| Petitioners |
Haji K. Assainar
|
| Respondents |
Commissioner of INCOME TAX
|
| Citations |
1968 SLD 272 = (1968) 69 ITR 154
|
| Other Citations |
CIT v. Chandulal Keshavlal & Co. [1960] 38 ITR 601 (SC),
Jethabhai Hirji & Co. v. CIT [1949] 17 ITR 533 (Bom.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
37(1)
|