THE COMMISSIONER OF INCOME-TAX,BOMBAY vs CHANDULAL KESHAVLAL & CO., PETLAD

The Supreme Court held that the amount relinquished by the Managing Agent as commission, amounting to Rs. 2,09,114, was deductible under Section 10(2)(XV) of the Indian Income-tax Act, 1922. The Court found that the expenditure was incurred wholly and exclusively for the purpose of the assessee's business, as it was linked to the financial condition of the managed company and aimed at future benefits for the assessee. The Tribunal's finding was upheld, emphasizing that commercial expediency and the nature of the transaction were crucial in determining deductibility.